Cheapest Car Insurance for Low-Income Drivers in Minnesota (2024)

The cheapest car insurance for individual drivers with low income and poor credit in Minnesota is West Bend Mutual at $43 per month. For families with low income, the most affordable option is Auto-Owners at $50 per month.

Minnesota does not have state-backed car insurance programs for low-income families and individuals. Therefore, finding the provider with the most affordable rate is one option to manage costs. Additionally, there are ways to get discounts to help alleviate the cost of car insurance.

While minimum coverage will help you drive legally, it has downsides. For example, in an at-fault accident, it may not cover all the damages, leaving you with out-of-pocket expenses.

Like most other states, car insurance companies in Minnesota don't offer income-based assistance programs. Income isn't a factor when calculating your car insurance rates in Minnesota, but other factors — including your age and credit history — are important.

The best way to find the cheapest rates is to compare quotes from several insurance companies. A minimum coverage policy is often the most inexpensive way to stay legal on the road, but it can leave you vulnerable to a substantial loss from an at-fault accident. If you rarely drive, look into pay-per-mile insurance, which could be a great way to save.

To legally operate a vehicle in the Land of 10,000 Lakes, you're required to carry a minimum car insurance policy that includes specific coverage amounts. Here's what you need:

• $30,000 for bodily injury liability per person
• $60,000 for bodily injury liability per accident
• $10,000 for property damage liability per accident
• $25,000 uninsured motorist bodily injury per person
• $50,000 uninsured motorist bodily injury per accident
• $40,000 personal injury protection (PIP) per person

While a liability-only car insurance policy covers expenses for the other driver in an accident you cause, it doesn't cover your own vehicle's damages. To protect your car from a range of risks, including theft and natural disasters, you'd need a full coverage car insurance policy with collision and comprehensive coverages.

In Minnesota, where harsh winters can lead to increased accidents and vehicle damage, opting for full coverage might be wise. Knowing the risks and benefits of each policy will help you decide what's best for your situation. For instance, if you frequently drive in areas prone to wildlife crossings or have a car loan, full coverage offers peace of mind beyond the minimum state requirements.

Credit history is vital for low-income drivers because it can significantly impact car insurance premiums in Minnesota. A poor credit record often signals higher risk to insurers, leading to increased premiums. Understanding how credit affects insurance rates is crucial for finding affordable coverage.

The cheapest car insurance companies for drivers with low-income and poor credit record in Minnesota are:

• West Bend Mutual: $513 per year, $43 per month
• Westfield: $686 per year, $57 per month

Drivers with good insurance credit, you can get the cheapest car insurance in Minnesota from:

• Westfield: $316 per year, $26 per month
• West Bend Mutual: $391 per year, $33 per month

Obtaining state minimum coverage is essential because driving without insurance is illegal. In Minnesota, being uninsured can lead to suspension of your driver’s license, vehicle registration, and fines ranging from $175 to $1,000, among other penalties.

While your income doesn't directly impact car insurance rates, your family situation does. In Minnesota, single parents with a teen see an annual premium of $942, which is $345 more than what married couples with a teen pay, at $597 per year. The difference is quite stark, making it clear that family status plays a role in determining premiums.

The most affordable car insurance companies for married couples with a teen in Minnesota are:

• Auto-Owners: $597 per year; $50 per month
• State Farm: $772 per year; $64 per month

For single parents with a teen, the cheapest options are:

• Auto-Owners: $942 per year; $79 per month
• State Farm: $1,250 per year; $104 per month

Married couples with a teen can save on premiums compared to single parents. This could be due to insurers viewing married couples as more stable and less risky. Regardless of your family status, maintaining a good credit score is key to securing more affordable car insurance rates.

Car insurance premiums generally decrease as you reach the early senior years, typically around age 55 to 65, especially if you maintain a clean driving record.

The two cheapest car insurance for senior drivers with low-income and poor credit history are:

• West Bend Mutual: $45 per month, $541 per year
• Farmers Union Insurance: $52 per month, $624 per year

After age 70, car insurance rates typically increase as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. In Minnesota, there are specific laws and guidelines for seniors getting car insurance to ensure fair treatment.

Car insurance rates in Minnesota are influenced by various factors. Although your income doesn't directly affect your rates, it can impact your credit score. A poor credit record can lead to higher rates, while a good credit record can result in lower rates. Understanding the factors that contribute to car insurance rates can help you make informed decisions in choosing the best car insurance for you.

There are several strategies to help you find affordable car insurance in Minnesota. Whether you qualify for state-sponsored programs for low-income drivers or not, there are ways to save on your premiums. Here are some tips to lower your car insurance premiums:

Finding affordable car insurance for low-income drivers in Minnesota can be tough. Get answers to some of the most commonly asked questions about low-income car insurance in Minnesota.