Car insurance is legally required in Minnesota. With over 3,351,400 licensed drivers in the state, having car insurance offers valuable protection. The average Minnesota driver pays $1,582 for full coverage insurance and $522 for minimum coverage insurance. However, there are several ways that Minnesota drivers can get cheap car insurance.
The cheapest car insurance in Minnesota
Cheap car insurance in Minnesota is not hard to find. The following providers offer the cheapest auto insurance policies in the North Star State:
|Car insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
|Automobile Club Minnesota||$463||$1,676|
Allstate is one of the leading car insurance companies in the country. Not only does Allstate offer good coverage options, but the policies are affordable. The average Minnesota driver pays $1,567 for a full coverage policy from Allstate and $393 for a minimum coverage policy.
With Allstate, Minnesota drivers can get access to a variety of discounts. There are savings opportunities for being a good driver, being a smart student, insuring a new car, paying in full, signing a policy early and having a vehicle with anti-lock brakes and an anti-theft device.
Auto-Owners was rated the best car insurance company in the Central region for overall customer satisfaction in J.D. Power’s 2020 U.S. Auto Insurance Study. Auto-Owners offers comprehensive coverage options, good discounts and cheap policies.
The average Minnesota driver pays $1,345 per year for a full coverage policy from Auto-Owners and $398 for a minimum coverage policy. In terms of discounts, drivers can save money by paying their premium on time, being claims-free, being a good student and bundling policies.
Drivers who are looking for the cheapest car insurance in Minnesota should look no further than State Farm. The average driver pays $1,136 per year for full coverage car insurance and $433 for minimum coverage car insurance.
In addition to low rates, State Farm is also known for its discounts. The company has two safe driver discount programs, Steer Clear for teen drivers and Drive Safe & Save for adults. State Farm also has discounts for good students, being claims-free, insuring multiple cars, taking a defensive driving course, being a student away at school and having a safe vehicle.
USAA only sells insurance coverage to active duty military members and veterans. Minnesota drivers who qualify for coverage get access to affordable rates, great customer service, good coverage options and a variety of discounts.
The average Minnesota driver pays $1,545 per year for full coverage insurance and $451 per year for minimum coverage insurance with USAA. The company also has discounts for storing a vehicle on a military base, being a safe driver, insuring a new vehicle, taking a driver training course and having a parent who is a USAA member.
Automobile Club of Minnesota
Auto Club of Minnesota is AAA’s insurance division. The car insurance premiums are slightly more expensive, but drivers get access to robust coverages and discounts. The average Minnesota driver pays $1,676 for full coverage insurance and $463 for minimum coverage insurance.
According to AAA, drivers save an average of $443 per year when they switch from another insurance provider. The company has discounts for AAA members, having an anti-theft device in the vehicle, being a good driver, being a good student and paying in full. There are also employer and occupation discounts available.
Affordable coverage for Minnesota drivers
Every driver in Minnesota is required to have a minimum amount of car insurance. Minnesota is a no-fault state, which means drivers must carry a minimum of $40,000 in personal injury protection (PIP), which covers their medical bills and lost wages after an accident, regardless of which driver is at fault.
In addition, drivers are required to carry personal liability insurance with coverage limits of 30/60/10, which includes $30,000 in bodily injury liability coverage per person, $60,000 in bodily injury liability coverage per accident and $10,000 in property damage liability coverage per accident.
Drivers who purchase minimum coverage insurance pay the lowest rate. However, it is recommended that most drivers purchase coverage beyond the required amount. Car accidents can be expensive, and if a driver’s financial responsibility exceeds their policy’s limit, they are responsible for paying the difference out-of-pocket.
How to get cheap car insurance in Minnesota
Drivers who are looking for cheap car insurance in Minnesota should start by evaluating affordable providers, but there are several other ways that drivers can get a cheap insurance rate. Here are some additional suggestions:
- Compare quotes: Instead of choosing the first insurance company you find, get quotes from several providers and compare them. That way, you can easily see which company can give you the lowest rate for the type and amount of coverage you need.
- Find discounts: Most insurance companies offer discounts that can help drivers lower their premium. Common car insurance discounts include being claims-free, being a good student, insuring multiple vehicles and bundling policies.
- Improve your credit score: Credit score is one of the biggest factors that will impact your car insurance rate. Raising your credit score is an effective way to get cheaper car insurance.
- Take a defensive driver course: Many car insurance companies offer extra savings for drivers who take an approved defensive driver course. This can be especially beneficial for young drivers.
- Pay in full: If you can afford to pay your annual premium upfront and in full, you can probably get a small discount on your car insurance premium.
Frequently asked questions
What is the best car insurance in Minnesota?
The best car insurance company in Minnesota varies. Some drivers are looking for the lowest rates, some are looking for the best customer service and others are looking for the best coverage. Minnesota drivers should shop around and compare insurance providers to see which one meets most of their needs.
What is the average cost of car insurance in the U.S.?
The average cost of car insurance in the United States is $1,738 for a full coverage policy. The average full coverage car insurance rate in Minnesota is $1,582. Overall, Minnesota drivers pay slightly less than the national average rate.
What factors impact my car insurance rate?
Car insurance rates are personalized, and every driver pays a slightly different rate. Factors like ZIP code, age, credit score, claims history, the type of car you drive, the amount of coverage you have and your policy’s deductible will impact the cost of insurance.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a cleaning driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.