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Cheapest car insurance in Minnesota for 2023
Based on our research, North Star Mutual, State Farm and American Family are some of the cheapest Minnesota car insurance companies.
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What To Know First
Minnesota's average cost of car insurance is lower than the national average, but many drivers may still be looking to save with a cheap carrier. The Bankrate insurance editorial team—including licensed insurance agents—reviewed the top carriers in the state to narrow down the cheapest options across a variety of driver profiles. Our Bankrate Scoring model considers average rate data from Quadrant Information Services, customer satisfaction scores, financial strength ratings, coverage availability, digital tools and more.
- Cheapest company for minimum coverage: North Star Mutual
- Cheapest company for full coverage: American Family
- Cheapest company for adding a teen driver: North Star Mutual
- Cheapest company after a speeding ticket conviction: North Star Mutual
- Cheapest company after an at-fault accident: North Star Mutual
- Cheapest company after a high-risk incident: State Farm
On This Page
- The cheapest car insurance companies in Minnesota
- The cheapest car insurance companies in Minnesota by coverage level
- Cheapest cities in Minnesota for car insurance
- Factors that impact rates in Minnesota
- Minimum coverage requirements for Minnesota drivers
- How to get the cheapest car insurance in Minnesota
- Car insurance discounts in Minnesota
- Frequently asked questions
The cheapest car insurance companies in Minnesota
To find the cheapest car insurance in Minnesota, Bankrate analyzed the latest rate data from Quadrant Information Services for the best auto carriers in the state. To choose companies that meet your coverage needs and your budget, we researched each company’s financial strength ratings from AM Best and S&P. We also analyzed customer satisfaction scores from the J.D. Power 2022 Auto Insurance Study. Based on our assessment, you may want to start your search for cheap coverage with quotes from the following companies:
Cheapest company in Minnesota for minimum coverage
Average monthly minimum coverage premium | Average annual minimum coverage premium | |
---|---|---|
North Star Mutual | $26 | $308 |
Cheapest car insurance in Minnesota for full coverage
Average monthly full coverage premium | Average annual full coverage premium | |
---|---|---|
American Family | $92 | $1,106 |
Cheapest car insurance company for adding a teen driver
Average monthly minimum coverage premium | Average annual minimum coverage premium | |
---|---|---|
North Star Mutual | $45 | $540 |
Cheapest company for getting a speeding ticket in Minnesota
Average monthly minimum coverage premium | Average annual minimum coverage premium | |
---|---|---|
North Star Mutual | $29 | $352 |
Cheapest company for being in an at-fault accident in Minnesota
Average monthly minimum coverage premium | Average annual minimum coverage premium | |
---|---|---|
North Star Mutual | $44 | $526 |
Cheapest company after a high-risk incident in Minnesota
Average monthly minimum coverage premium | Average annual minimum coverage premium | |
---|---|---|
State Farm | $63 | $757 |
The cheapest car insurance companies in Minnesota by coverage level
Finding affordable car insurance in Minnesota depends, in part, on what types and limits of coverage you purchase. Minimum coverage is typically the cheapest option, but it does not provide coverage for your own vehicle. In Minnesota, the average annual cost of car insurance is $1,760 for full coverage and $585 for minimum coverage. Most insurance professionals recommend purchasing full coverage if you can afford to do so for greater financial protection.
Insurance company | Average monthly minimum coverage premium | Average annual minimum coverage premium | Annual savings vs. State average* |
---|---|---|---|
North Star Mutual
|
Average monthly minimum coverage premium
$26
|
Average annual minimum coverage premium
$308
|
Annual savings vs. State average*
- $277 |
Auto-Owners
4.2
Bankrate Score
|
Average monthly minimum coverage premium
$38
|
Average annual minimum coverage premium
$455
|
Annual savings vs. State average*
- $130 |
State Farm
4.2
Bankrate Score
|
Average monthly minimum coverage premium
$40
|
Average annual minimum coverage premium
$483
|
Annual savings vs. State average*
- $102 |
American Family
3.8
Bankrate Score
|
Average monthly minimum coverage premium
$42
|
Average annual minimum coverage premium
$507
|
Annual savings vs. State average*
- $78 |
Allstate
3.8
Bankrate Score
|
Average monthly minimum coverage premium
$43
|
Average annual minimum coverage premium
$512
|
Annual savings vs. State average*
- $73 |
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
*Based on policies with minimum coverage for 2023
Insurance company | Average monthly full coverage premium | Average annual full coverage premium | Annual savings vs. State average* |
---|---|---|---|
American Family
3.8
Bankrate Score
|
Average monthly full coverage premium
$92
|
Average annual full coverage premium
$1,106
|
Annual savings vs. State average*
- $654 |
State Farm
4.2
Bankrate Score
|
Average monthly full coverage premium
$95
|
Average annual full coverage premium
$1,137
|
Annual savings vs. State average*
- $623 |
Farmers
3.8
Bankrate Score
|
Average monthly full coverage premium
$115
|
Average annual full coverage premium
$1,377
|
Annual savings vs. State average*
- $383 |
North Star Mutual
|
Average monthly full coverage premium
$122
|
Average annual full coverage premium
$1,458
|
Annual savings vs. State average*
- $302 |
Nationwide
3.9
Bankrate Score
|
Average monthly full coverage premium
$123
|
Average annual full coverage premium
$1,475
|
Annual savings vs. State average*
- $285 |
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
*Based on policies with full coverage for 2023
Cheapest cities in Minnesota for car insurance
Even within Minnesota, average car insurance rates may vary by city and ZIP code. Your city's average rates may be higher or lower due to local repair costs, accident rates, regional weather patterns and more. The table below highlights five of the cheapest average cities for car insurance in Minnesota for full and minimum coverage.
City | City average annual minimum coverage premium | Cheapest car insurance company | Company average annual minimum coverage premium |
---|---|---|---|
Perham | $443 | North Star Mutual | $232 |
Thief River Falls | $446 | North Star Mutual | $232 |
Kennedy | $447 | North Star Mutual | $232 |
Comstock | $447 | North Star Mutual | $232 |
Baudette | $448 | North Star Mutual | $245 |
City | City average annual full coverage premium | Cheapest car insurance company | Company average annual full coverage premium |
---|---|---|---|
Chanhassen | $1,620 | American Family | $1,035 |
Carver | $1,628 | State Farm | $1,011 |
Clements | $1,628 | State Farm | $886 |
Frost | $1,628 | State Farm | $843 |
Plato | $1,628 | State Farm | $955 |
Factors that impact cheap rates in Minnesota
Insurance rates in Minnesota depend on many variables, including your age, gender, vehicle type and driving record. Different carriers weigh rating factors differently, so the cheapest carrier for you may depend on your personal circumstances. Below you can explore the cheapest carriers across various common driver profiles.
Insuring a teen driver
Teen drivers are among the most expensive to insure, largely due to their inexperience behind the wheel and high accident rate. Teen drivers typically need to be insured on their parents' insurance policy until age 18, but they may be able to save on their premium by remaining on their parents' policy for as long as they are eligible to.
Car insurance company | Average annual minimum coverage premium | Average annual full coverage premium |
---|---|---|
North Star Mutual | $540 | $2,409 |
Allstate | $545 | $2,863 |
Amco Insurance | $925 | $2,259 |
Nationwide | $925 | $2,259 |
American Family | $1,011 | $2,053 |
Getting a speeding ticket
Your driving record is a key metric carriers use when determining your rate. Being convicted of a speeding ticket in Minnesota will likely increase your premium when your policy renews. This is because carriers see a speeding ticket as an indication that you may engage in risky driving behavior and file a claim. However, some carriers offer lower average rates than others following a speeding ticket conviction.
Car insurance company | Average annual minimum coverage premium | Average annual full coverage premium |
---|---|---|
North Star Mutual | $352 | $1,686 |
Auto-Owners | $519 | $1,707 |
State Farm | $557 | $1,310 |
Encompass | $616 | $2,447 |
Geico | $625 | $2,082 |
USAA | $702 | $2,255 |
Nationwide | $704 | $1,655 |
Getting into an at-fault accident
Unless you have accident forgiveness coverage on your car insurance policy, your rates will likely increase following a car accident. The following carriers offer some of the lowest rates for drivers with a single at-fault accident on their record.
Car insurance company | Average annual minimum coverage premium | Average annual full coverage premium |
---|---|---|
North Star Mutual | $526 | $2,581 |
Auto-Owners | $618 | $1,940 |
State Farm | $627 | $1,454 |
Encompass | $722 | $2,890 |
Geico | $763 | $2,553 |
Allstate | $773 | $3,604 |
Being deemed a high-risk driver
High-risk drivers are typically drivers who have been convicted of a DUI, multiple speeding tickets, multiple accidents or another severe driving infraction. Being deemed a high-risk driver will typically increase your auto insurance rates substantially and may even disqualify you for coverage with some carriers. We assessed the cheapest companies for high-risk drivers by looking at rates for drivers with a single DUI conviction.
Car insurance company | Average annual minimum coverage premium | Average annual full coverage premium |
---|---|---|
State Farm | $757 | $1,711 |
American Family | $826 | $1,891 |
North Star Mutual | $909 | $4,547 |
Allstate | $925 | $3,728 |
Country Financial | $926 | $2,887 |
Nationwide | $950 | $2,262 |
Minimum coverage requirements for Minnesota drivers
For an average rate of $585 per year, minimum coverage in Minnesota includes:
- $30,000 in bodily injury liability coverage per person
- $60,000 in bodily injury liability coverage per accident
- $10,000 in property damage liability coverage per accident
- $25,000 in uninsured/underinsured bodily injury liability coverage per person
- $50,000 in uninsured/underinsured bodily injury liability coverage per accident
- $40,000 personal injury protection (PIP)
Minnesota drivers are required to have policies that meet at least these requirements in order to comply with state law. Although Minnesota's minimum insurance requirements are fairly robust compared to most other states, the majority of insurance experts recommend carrying additional coverage if you can afford to do so. Minimum coverage may not be enough to prevent high out-of-pocket costs following an accident or other incident. You may want to talk with an insurance agent about what coverage makes sense for you.
How to get the cheapest car insurance in Minnesota
The strategies below may help drivers learn how to save on car insurance in Minnesota. Exact details of Minnesota car insurance savings opportunities will vary between drivers and insurers.
Shop around and compare quotes
Obtaining free quotes from multiple companies and comparing rates may show you which carrier has the lowest rates for your circumstances. When doing this, you'll likely want to specify the same coverage types and limits with each company so the comparisons are accurate.
Maintain a clean driving record
One of the key variables that influence car insurance rates is your driving record. Avoiding tickets and accidents may help keep your rates steady over time by demonstrating that you do not engage in risky driving behavior. Some carriers also have additional discounts for drivers who go a certain period of time without filing a claim. Even if you don't have a perfect record today, avoiding future incidents will likely bring your rates down eventually.
Car insurance discounts in Minnesota
Many insurance companies offer at least a few car insurance discounts to eligible drivers. Exact discounts, savings potential and eligibility differ between companies. To find which discounts your insurer offers, you could check their website or contact your agent.