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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.

Updated May 17, 2023
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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:

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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.

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.

North Star Mutual
Average monthly minimum coverage premium
$26
Average annual minimum coverage premium
$308
Annual savings vs. State average*
- $277
Auto-Owners
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
Average monthly minimum coverage premium
$38
Average annual minimum coverage premium
$455
Annual savings vs. State average*
- $130
State Farm
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
Average monthly minimum coverage premium
$40
Average annual minimum coverage premium
$483
Annual savings vs. State average*
- $102
American Family
Rating: 3.8 stars out of 5
3.8
Bankrate Score
Info
Average monthly minimum coverage premium
$42
Average annual minimum coverage premium
$507
Annual savings vs. State average*
- $78
Allstate
Rating: 3.8 stars out of 5
3.8
Bankrate Score
Info
Average monthly minimum coverage premium
$43
Average annual minimum coverage premium
$512
Annual savings vs. State average*
- $73
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Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

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

American Family
Rating: 3.8 stars out of 5
3.8
Bankrate Score
Info
Average monthly full coverage premium
$92
Average annual full coverage premium
$1,106
Annual savings vs. State average*
- $654
State Farm
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
Average monthly full coverage premium
$95
Average annual full coverage premium
$1,137
Annual savings vs. State average*
- $623
Farmers
Rating: 3.8 stars out of 5
3.8
Bankrate Score
Info
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
Rating: 3.9 stars out of 5
3.9
Bankrate Score
Info
Average monthly full coverage premium
$123
Average annual full coverage premium
$1,475
Annual savings vs. State average*
- $285
Powered by Coverage.com (NPN: 19966249)
Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

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.

Frequently asked questions

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Written by
Joshua Cox-Steib
Insurance Contributor

Joshua Cox-Steib has two years of experience in writing for insurance domains such as Bankrate, Coverage.com, The Simple Dollar, Reviews.com, and more. His work has also been featured on such sites as MSN and BBB (Better Business Bureau). His insurance writing career has spanned across multiple product lines, with a primary focus on auto insurance, life insurance, and home insurance.

Edited by Insurance Editor