Average cost of car insurance in Minnesota for 2023

How much is car insurance in Minnesota?

Car insurance rates in Minnesota, like most states, are influenced by a number of factors and will vary by driver. Some of these factors include what kind of car you drive, the amount and types of coverage you need, what city you live in, your driving record and your age. Understanding how some of these things can influence your premium could help you find the best rates when looking for auto insurance in Minnesota. It’s worth noting that many Minnesota drivers can typically find more affordable car insurance than drivers in several other states. Minnesota's annual car insurance averages—$585 for minimum and $1,760 for full coverage—are notably lower than the national annual averages, which are $622 for minimum and $2,014 for full coverage auto insurance.

Minnesota car insurance rates by city

Minnesota is a large state with diverse communities that range from urban to rural. Drivers in Minnesota’s bigger cities typically see more expensive premiums than those who live in rural or suburban areas, partly due to the fact that congested traffic can lead to more accidents. We broke down average rates for the five most populated cities in Minnesota below to give you an idea of what to expect depending on where you live. Drivers in Minneapolis can expect to pay some of the highest rates in the state at three percent above the Minnesota average.

Average car insurance costs by age and gender in Minnesota

Younger drivers are considered at higher risk because of their lack of experience behind the wheel. Statistically, they are also responsible for more accidents and fatalities than other age groups, making them more expensive to insure. Most drivers will see premiums decrease as they age, as long as they maintain a good driving record and do not file a lot of claims. In many states, including Minnesota, gender also plays a role in determining premium rates, with male drivers often paying slightly more than females.

Cost considerations for young drivers in Minnesota

In Minnesota, drivers aged 16 to 17 must be covered by their parents' or legal guardians' car insurance policy. But, if they are able, they may want to consider remaining on that policy even after they turn 18 and are free to purchase their own auto insurance. As you can see from the chart below, average rates are much lower for a young driver on their parents' car insurance than they are if they have a solo policy.

*16- and 17-year-old drivers must be on their parents’ or legal guardian’s policy.

How does driving record impact the cost of car insurance in Minnesota?

Insurance companies, which are in the business of risk management, prefer to insure safe drivers and typically reward them with some of the best car insurance rates. On the other hand, an accident or speeding ticket could raise your premiums considerably. As you can see by the table below, a single DUI conviction, one of the most serious traffic violations, could raise your rates by an average of  95 percent, in addition to whatever state-mandated fines or penalties you incur. Additionally, several driving infractions (or even one serious infraction) could mean insurance companies will consider you a high-risk driver, which will make finding affordable car insurance a bit more challenging.

Car insurance rates in Minnesota by credit tier

Insurers prefer working with drivers who have high credit-based insurance scores, because studies show that they tend to file fewer claims. If you have poor credit, your insurer may be concerned that you'll file more claims; to account for this increased risk, drivers whose credit falls into the poor range could pay around 87 percent more than drivers with so-called ‘good’ credit. This average increase is nearly on par with what a driver convicted of a DUI pays on average, so it might be worth working with a certified financial planner to see what steps you can take to improve your credit.

Minnesota car insurance rates by vehicle type

The make and model of your car impacts your car insurance premium significantly. Cars that have statistically fewer accidents, as well as cars that are cheaper to repair, may see decreased auto insurance rates. At the same time, a pricey sports car that requires imported parts and has a higher accident rate is likely to be more expensive to insure.

How to save on car insurance in Minnesota

There's nothing you can do about some factors that impact your car insurance rates, like your age and location, but there may be other ways to lower your car insurance rates in Minnesota.

• Get quotes periodically: Make it a habit to check other carriers’ auto insurance rates as compared to what you currently pay. If you periodically get car insurance quotes from other carriers, you may find better rates from a different company that makes it worthwhile to switch carriers.
• Ask for discounts: Nearly all car insurance companies provide some discounts that can help you lower premiums. For example, you may be able to get a rate reduction for setting up automatic payments, bundling your vehicle and home insurance, staying with the same provider over time or even for switching companies.
• Buy insurance with accident forgiveness: An accident could raise your premiums up to 42 percent in Minnesota, on average. Opting for coverage with an accident forgiveness endorsement could protect you from a steep increase if you are rarely involved in an accident.

Estimate your car insurance cost in Minnesota

Frequently asked questions