Updated: October 25, 2024
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Insurance companies will consider an individual’s driving record when calculating their premium. Drivers with a history of violations are viewed as more likely to file a claim and are charged higher rates as a result.
Shopping around is the best way to ensure you get the best possible rate. Based on MoneyGeek’s analysis, American Family is the best and cheapest insurer for high-risk drivers in Minnesota, with a policy averaging $1,015 per year.
Best & CheapestAuto InsuranceHigh-RiskBest Companies for High-Risk Drivers in 2023
Insurance underwriters will categorize you as high-risk if you have an at-fault accident on your record, a DUI conviction or a string of violations, such as speeding tickets. Teen drivers are also classified as high-risk due to their inexperience on the road.
On average, high-risk drivers in Minnesota are charged an annual rate of $1,556, while drivers with a clean record are billed only $1,087. This 27% difference reflects the anticipated cost of insuring a driver who is more likely to file a claim.
When assessing whether a driver is risky to insure, most auto insurers will often look at several factors in addition to your driving history. These include your credit score and even the type of vehicle that you drive. But the most important factor is still one’s driving record.
Generally, the following types of drivers are considered high-risk by insurance standards:
Through extensive research, MoneyGeek found that American Family offers Minnesota's cheapest car insurance for high-risk drivers. American Family policyholders pay an annual average of $1,015.
Read MoneyGeek’s review of American Family for a more in-depth look at its pros, cons and average auto insurance rates.
| American Family | $1,015 |
| State Farm | $1,017 |
| Farmers | $1,166 |
| Auto-Owners Insurance Co | $1,605 |
| Allstate | $1,872 |
| Progressive | $2,021 |
| GEICO | $2,200 |
In most states, drivers convicted of a major violation or repeat offenses are required to file SR-22 insurance.
Although Minnesota doesn’t require SR-22 insurance, you might need one if you’re convicted of a serious traffic violation in a state where it is mandatory.
MoneyGeek’s top pick for the best car insurance company for high-risk drivers in Minnesota is American Family, scoring 91 out of 100. State Farm is a very close runner-up, also scoring 91 out of 100 but with an annual premium of $2 more than American Family.
Read our American Family and State Farm reviews for more detailed analyses of these insurers.
In Minnesota, on average, American Family’s high-risk car insurance is priced at $1,015 per year. This is 4% more than Minnesota drivers with clean records are expected to pay for car insurance.
American Family is a top contender for the best car insurance for high-risk drivers in Minnesota because of its affordable rates, especially for those with a record of violations and teenage drivers. It also has many unique discounts, including new customer, legacy and loyalty discounts. However, note that American Family’s car insurance policies are only available in 19 states, and it lacks add-on coverages that are commonly offered by other insurers, such as deductible modification.
State Farm offers high-risk car insurance in Minnesota at an average cost of $1,017 per year, which is 11% higher than the average rate for drivers with clean records.
State Farm is a top-rated insurance company in all 50 states and Washington, D.C. It offers low rates for most drivers, alongside several discounts that can make premiums more affordable, such as discounts for being a good student and a good driver. In addition, policyholders who work in the gig economy can purchase rideshare insurance as an add-on to their policy. Keep in mind that this insurer doesn’t offer common coverages like accident forgiveness, gap insurance and deductible modification.
The top insurance companies are often more expensive, so we recommend that you also consider low-income car insurance options in Minnesota.
Although the state doesn’t have government programs to assist low-income individuals and families with car insurance, minimum coverage or pay-per-mile insurance might be good alternatives, especially for low-mileage drivers.
State Farm offers the cheapest car insurance for Minnesota drivers with a DUI, which comes at an annual premium of $988. Check MoneyGeek’s State Farm review to learn more about this provider's car insurance offerings and discounts.
Alternatively, USAA is an affordable option for military members and their families.
| State Farm | $988 |
| American Family | $1,015 |
| Farmers | $1,245 |
| Progressive | $1,757 |
| Allstate | $2,005 |
| Auto-Owners Insurance Co | $2,091 |
| GEICO | $3,468 |
A DUI conviction remains on your record for several years, depending on your state’s look-back period. This can be quite long to determine if someone is prone to drunk driving and needs to be given harsher sanctions.
Minnesota has a 10-year look-back period, which means that a second DUI conviction within this period already classifies you as a repeat offender, and a third DUI conviction is considered a felony DUI.
State Farm is Minnesota's cheapest car insurance provider for teenage drivers. Its policies for teens cost an average of $3,641 annually. Explore this insurer’s coverages, average rates and customer service reputation by reading MoneyGeek’s State Farm review.
| State Farm | $3,641 |
| GEICO | $5,616 |
| Allstate | $5,786 |
| Progressive | $10,091 |
Teenage drivers are typically charged more expensive premiums because their immaturity and driving inexperience may cause them to engage in risky behaviors on the road.
Because young drivers generally have higher rates of traffic accidents, MoneyGeek recommends that they choose full coverage insurance to ensure proper protection. Those on a budget may also explore our list of affordable car insurance options for young drivers and students.
MoneyGeek’s analysis identified GEICO as Minnesota's cheapest car insurance company for drivers with bad credit. Its policies for drivers with poor credit are priced at $1,868 per year on average, which is 42% higher than what drivers with good credit are expected to pay.
Check our GEICO review to learn the latest information on this insurer’s coverages, discounts, average rates and more.
| GEICO | 1,868 | 42% |
Auto insurance companies may charge you higher premiums if you have a bad credit history. The best way to get the lowest rates possible is to shop around and compare quotes from multiple insurers since rates can vary greatly. MoneyGeek has also listed recommendations for the best and cheapest car insurance for drivers with poor credit to help you get started.
Your driving history is one of the main factors companies evaluate when calculating your premiums. MoneyGeek summarized data from different insurers to give you an idea of how much more a high-risk driver in Minnesota pays compared to the average driver without a history of violations.
The comparison infographic below shows that car insurance in Minnesota costs an average of $1,556 for high-risk drivers, while drivers with a clean record only pay $1,087 in annual premiums, on average.
Low-Risk Driver
$1,087High-Risk Driver
$1,556This is 43% more expensive.
Use MoneyGeek’s Minnesota car insurance calculator for a free and instant estimate of your car insurance costs. Simply input your personal details and preferred liability coverage in our resource tool to get your personalized quote.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Nov 20, 2024
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
In the traditional, voluntary market, car insurance companies can deny you coverage if you’re assessed as too risky to insure. If you’re in this situation, the best way to move forward is to purchase an auto insurance residual market plan offered by the Automobile Insurance Plan Service Office (AIPSO).
As a national and not-for-profit organization, AIPSO has been helping to provide much-needed coverage to drivers unable to secure a policy in the traditional market due to a bad driving history or failure to meet underwriting criteria.
AIPSO’s residual market plan in Minnesota is called the Minnesota Automobile Assigned Risk Plan (MNAIP), which was later renamed the Minnesota Automobile Insurance Plan.
To qualify for MNAIP coverage, drivers must provide certification that they failed to purchase auto insurance in the voluntary market in the preceding 60 days of their MNAIP application and that they have been unable to get reasonable rates for a plan.
Office Hours
Monday–Friday, 8 a.m.–4 p.m. CT
mnaip@aipso.com
Phone
(888) 706-6100
Fax
(800) 827-6260
Mailing Address
Central Region, P.O. Box 6530, Providence, RI 02940-6530
Getting car insurance as a high-risk driver can be challenging. Let MoneyGeek help you through this process by reviewing the answers to some of Minnesota's more commonly asked questions about high-risk car insurance.
American Family is the best car insurance provider for high-risk drivers in Minnesota based on its high MoneyGeek rating.
According to MoneyGeek’s study, the following are the average rates for various types of high-risk drivers in Minnesota:
Generally, insurers will consider you a high-risk driver if you have a history of at-fault accidents, tickets and serious violations, such as a DUI conviction. You may also be classified as high-risk if you’re a teen driver.
Drivers denied coverage within the voluntary market may apply for AIPSO’s residual market plan, the Minnesota Automobile Assigned Risk Plan (MNAIP), also known as the Minnesota Automobile Insurance Plan. You may contact MNAIP from Monday to Friday, 8 a.m. to 4 p.m. CT by calling (888) 706-6100 or emailing mnaip@aipso.com.
MoneyGeek calculated average rates using full coverage car insurance policies with 100/300/100 liability insurance and comprehensive and collision coverage with a $1,000 deductible. Minimum coverage car insurance policy rates were calculated based on each state’s minimum car insurance requirement.
To calculate rates for high-risk drivers, MoneyGeek averaged the premiums insurance companies charge for three of the most common driving violations: speeding, at-fault accident and DUI.
To determine the best car insurance company for high-risk drivers, MoneyGeek scored companies based on affordability, customer satisfaction and complaints — obtained from J.D. Power surveys and NAIC complaint scores — and financial strength ratings as calculated by AM Best. Affordability received the greatest weighting in our calculations.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
