Average cost of car insurance in Minnesota for 2025

How much is car insurance in Minnesota?

Drivers in the North Star State pay an average cost for car insurance that is below national average. Minimum coverage is available for an annual average of $736, while full coverage, which includes collision and comprehensive coverage, averages $2,619. Multiple factors influence the amount you pay, however, and your premium may be higher or lower depending on your driving history, vehicle type, coverage selections and more.

Key takeaways

• In Minnesota's most populous city, Minneapolis, drivers pay an average of $2,619 per year for full coverage and $736 per year for minimal coverage, which works out to monthly payments of $218 and $61, respectively.
• Drivers who pay the most for auto insurance in Minnesota are 18-year-old males with their own policy at an average rate of $7,387 annually.
• Being convicted of a DUI in Minnesota could increase your policy premium by an average of 113 percent more.
• Drivers in the North Star State with excellent credit pay an average of $2,206 per year for full coverage — 16 percent less than the state average.

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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 some of the 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 — 8 percent more than 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 premiums, 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 car insurance costs in Minnesota are much lower for a young driver on their parents' car insurance than they are if they have their own 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. Per the table, a single DUI conviction, one of the most serious traffic violations, could raise your rates by an average of 113 percent more, 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 134 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 impact your car insurance premium significantly. Cars that have statistically fewer accidents, as well as cars that are cheaper to repair, may see cheaper 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.

Estimate your car insurance cost in Minnesota

Knowing what you can expect to pay for car insurance can be a great place to start when shopping for a new policy. That is why Bankrate created the handy estimation calculator tool below. After entering some basic information, you'll see a rough insurance premium estimate. While this is not an exact quote, it can give you a good idea so you can budget accordingly.

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 every six to 12 months. If you periodically get car insurance quotes from other carriers, you may find better rates from a different company and could find it worthwhile to switch carriers.
• Ask for discounts: Nearly all car insurance companies provide discount opportunities that can help you score 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 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.

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