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Cheapest car insurance in Minnesota 2022
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If you’re a driver looking for cheap car insurance in Minnesota, you have plenty of options to choose from. The cheapest car insurance provider for minimum coverage in Minnesota is North Star Mutual, at an average of $311 per year, according to Bankrate’s research. On the other hand, American Family is the cheapest provider for full coverage insurance, with an average cost of $1,098 per year.
Minimum coverage insurance typically costs less than full coverage insurance because it provides less coverage, and therefore offers less financial protection. However, it’s still possible to find affordable rates for full coverage insurance in Minnesota, especially if you’re shopping with the carriers below. These carriers offer average premiums that are well below the average cost of car insurance in Minnesota.
The cheapest car insurance companies in Minnesota
To find the cheapest car insurance companies in Minnesota, Bankrate analyzed the latest rate data from Quadrant Information Services. To make sure you’re getting the best insurance for your needs and your wallet, we also researched each company’s financial strength ratings from AM Best and S&P. Additionally, we analyzed customer strength ratings from the J.D. Power 2021 U.S. Auto Claims Satisfaction Study to make sure the companies on this list are well-respected by their policyholders.
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The cheapest companies for minimum coverage in Minnesota
Based on our objective research, the following providers are among the cheapest in the state, each offering minimum coverage for below the state average of $600 per year. The cheapest company for minimum coverage insurance on our list is North Star Mutual, which offers minimum coverage insurance for an average of $311 per year. You may want to talk with an insurance agent before buying minimum coverage, however. While minimum coverage is typically cheaper than full coverage, it could leave certain drivers financially vulnerable in the event of an accident.
The cheapest companies for full coverage in Minnesota
If you’re looking for the cheapest car insurance companies, the following providers offer the lowest-cost full coverage policies in Minnesota, based on our research. American Family, the cheapest provider on average, offers full coverage policies for about $550 less than the state average.
When getting car insurance quotes from providers, be mindful that your actual rates will vary based on your individual characteristics, such as driving record and vehicle type. However, the following rates may be helpful for the purpose of comparison:
Events that can impact your cheap rates in Minnesota
Life events, like adding a teen driver to your policy or getting in an accident, can cause your rates to spike. However, there are certain steps you can take to make sure your rates stay as low as possible, including shopping for better deals at competing providers. After the following life events, you may want to take a closer look at your current carrier:
- Adding a teen driver: Adding a teen driver to your policy typically increases your premium significantly, since teens have less experience behind the wheel and are seen as more risky to insure. However, rates will typically decrease as your teen gains experience and exhibits safe driving habits, and they may be able to qualify for a student discount to lower rates even more.
- Receiving a speeding ticket: If you receive a speeding ticket, your insurance rates will typically increase and may be affected for an average of three to five years. After that, your premium will typically level off.
- Being involved in an at-fault accident: If you’re involved in an at-fault accident, your car insurance rate will typically increase. After about five years and with no further driving incidents, you may see it level off again.
- Being deemed a high-risk driver: If you’re deemed a high-risk driver through an incident, such as a reckless driving charge or a DUI, your rates are likely to increase significantly. In addition, you may have to search for a new provider if your current insurance carrier does not offer insurance to high-risk drivers. Even if your insurance company does offer high-risk insurance, you may find a lower rate elsewhere.
Cheapest cities in Minnesota for minimum coverage
When shopping for minimum coverage car insurance, you may be interested to know that the average car insurance rates in Minnesota vary by ZIP code. Car insurance rates vary by geographic location because different towns and cities have different costs of living, repair prices, accident rates and more.
If you move to a different city in your state, you may want to shop around to make sure your current provider is still the best deal for you. The following cities are home to the cheapest average minimum coverage rates in Minnesota:
|City||Average annual minimum coverage premium||Average monthly minimum coverage premium|
Cheapest cities in Minnesota for full coverage
If you’re looking for full coverage car insurance in Minnesota, you may be interested to see which towns offer the cheapest full coverage rates. On average, Mankato, Moorhead, Olivia and Fairfax drivers spend the least on their full coverage car insurance.
Small towns like these often have low costs of living, which may be one reason why the average car insurance premiums stay low. Additionally, cities with low accident rates and low costs of repairs typically have low car insurance costs.
|City||Average annual full coverage premium||Average monthly full coverage premium|
Minimum coverage requirements for Minnesota drivers
If you are interested in insuring your vehicle with only the coverage required in Minnesota, here are the state minimum requirements:
- $30,000 in bodily injury liability coverage per person
- $60,000 in bodily injury 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
- $10,000 in property damage liability coverage per accident
Minnesota drivers are required to have policies that meet at least these requirements in order to comply with state law. However, many drivers opt for full coverage insurance, which includes collision and comprehensive coverage. Full coverage may help cover repair or replacement costs if your vehicle is damaged or totaled. How much coverage you need comes down to your individual finances and goals. You may want to talk with an insurance agent about what coverage makes sense for you.
Here is how to find (and keep) cheap car insurance in Minnesota
There are several approaches that can help you find and keep cheap car insurance in Minnesota. Since every driver is different, you’ll want to find the right approach for you. Consider the following tips for finding and keeping the cheapest car insurance providers:
- To find a cheap car insurance company, you may want to shop around and get multiple quotes. Car insurance companies have different ways of calculating premiums. One provider may place more weight on your driving habits, while another might place more weight on the vehicle you drive. Insurance carriers offer different discounts as well. For this reason, you’ll likely get different rates quoted by each provider on your list. As such, it may be helpful to request quotes from multiple providers to make sure you’re getting the cheapest rates.
- Once you’ve secured affordable rates, you could lock those in by maintaining clean driving records and adjusting your coverage or carrier after certain life events. Life events, like getting into an at-fault car accident or adding a teen driver to your policy, could raise your rates significantly. Your carrier may have auto insurance discounts that can help you lower rates after these events, such as a student discount or a discount for completion of an approved driving course. You may also want to see if your provider offers a telematics program, which tracks your driving habits and awards discounts for safe practices behind the wheel. However, if rates at your current provider remain high after a life event, you may want to shop around with other insurance providers and see if they can beat your current rate.
Frequently asked questions
Bankrate utilizes Quadrant Information Services to analyze 2022 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 clean 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 coverage that meets each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.