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 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.
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation of Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our .
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 2023 Auto Insurance Study.
Key takeaways
- Cheapest company for minimum coverage: North Star Mutual
- Cheapest company for full coverage: American Family
- Cheapest companies for drivers with prior incidents: North Star Mutual and American Family
- Cheapest company for young drivers: North Star Mutual and Western National
Cheapest car insurance in Minnesota for minimum coverage
Like most states, Minnesota has a required amount of minimum coverage drivers must carry to drive legally. Although in some states this coverage includes liability only, Minnesota drivers also need personal injury protection, uninsured motorist coverage and underinsured motorist coverage. Minimum coverage does not provide protection for your own vehicle, so insurance typically experts recommend that you purchase additional coverage to be adequately protected in the event of an accident. In Minnesota, North Star Mutual has the lowest average minimum coverage rates of the insurers we reviewed.
Carrier | Monthly min coverage premium | Annual min coverage premium | Savings vs state avg. for min coverage |
---|---|---|---|
North Star Mutual
|
$26
|
$308
|
- $277 |
$38
|
$455
|
- $130 |
|
$40
|
$483
|
- $102 |
|
$42
|
$507
|
- $78 |
|
$43
|
$512
|
- $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.
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.
Cheapest car insurance in Minnesota for full coverage
Full coverage includes both Minnesota's minimum coverage car insurance requirements, plus optional collision and comprehensive insurance, which covers damages to your car after a covered accident or claim. Although full coverage is generally more expensive than minimum coverage insurance, it also provides more robust protection, which could save you thousands of dollars in the event of a claim. In Minnesota, American Family offers the lowest average full coverage rates of the carriers we assessed.
Carrier | Monthly full coverage premium | Annual full coverage premium | Savings vs state avg. for full coverage |
---|---|---|---|
$92
|
$1,106
|
- $654 |
|
$95
|
$1,137
|
- $623 |
|
$115
|
$1,377
|
- $383 |
|
North Star Mutual
|
$122
|
$1,458
|
- $302 |
$123
|
$1,475
|
- $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.
Cheapest car insurance in Minnesota for drivers with prior incidents
Insurers are likely to charge more for drivers who are at a greater risk of having an accident. They base their decisions on premium rates partly on each driver's driving history, with the assumption that past infractions may be an indication of poor driving habits that may lead to future infractions. Drivers with a clean record will generally see the lowest rates, with rates increasing depending on the severity of past moving violations.
- Cheapest car insurance for drivers with a ticket: North Star Mutual
- Cheapest car insurance for drivers with an at-fault accident: North Star Mutual
- Cheapest car insurance for high-risk drivers: American Family
Cheapest insurance companies for drivers in Minnesota with a speeding ticket: North Star Mutual
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. In Minnesota, North Star Mutual offers the lowest average rates for minimum coverage, while State Farm's average rate was the lowest for full coverage.
Company | Avg annual min coverage premium | Avg annual full coverage premium |
---|---|---|
North Star Mutual | $352 | $1,686 |
Auto-Owners | $519 | $1,707 |
State Farm | $557 | $1,310 |
American Family | $581 | $1,288 |
Encompass | $616 | $2,447 |
Cheapest car insurance for drivers in Minnesota with an at-fault accident: North Star Mutual
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. North Star Mutual was at the top of the list for minimum coverage, while State Farm offered the lowest average rate for full coverage in Minnesota.
Company | Avg annual min coverage premium | Avg 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 |
Cheapest rates in Minnesota for high-risk drivers: American Family
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. In Minnesota, American Family's average rates were most reasonable for both minimum and full coverage.
Company | Avg. annual min coverage premium | Avg. annual full coverage premium |
---|---|---|
American Family | $826 | $1,891 |
North Star Mutual | $909 | $4,547 |
Allstate | $925 | $3,728 |
Country Financial | $926 | $2,887 |
Nationwide | $950 | $2,262 |
Bankrate’s take: Unfortunately, if you are a high-risk driver, you may need to find a new carrier that will cover you. Not all insurers, including some well-known ones such as State Farm, will write policies for individuals considered to be high risk. This is because past risky driving behavior indicates poor driving habits, making it more likely that a driver will file a claim in the future. To minimize the risk of paying out on expensive claims, some companies will refuse to write policies for drivers in this category.
Cheapest car insurance for young drivers in Minnesota
Cheap car insurance in MN can be challenging to find if you are a young driver, since this age group is statistically more likely than any other group to be involved in car accidents. It is possible to find affordable coverage, however, by shopping around and asking for multiple quotes to see who will give you the best rate.
- Cheapest car insurance for insuring a teen driver: North Star Mutual
- Cheapest car insurance for teens with a ticket: North Star Mutual
- Cheapest car insurance for teens with an at-fault accident: North Star Mutual
- Cheapest car insurance for young drivers with a DUI: Western National
Cheapest Minnesota car insurance for insuring a teen driver: North Star Mutual
Teen drivers are among the most expensive to insure, largely due to their inexperience behind the wheel and high accident rate. Teen drivers 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. You may also save money by looking for discounts geared toward teen drivers, which may include student discounts. Several carriers, including North Star, Amco and Nationwide, offered the lowest rates for young drivers.
Company | Avg. annual min coverage premium | Avg. 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 |
Bankrate’s take: It is generally cheaper for a young driver to stay on their parents' policy, and is required if they are under age 18 and not yet legally considered an adult. Insurers consider teens to be a higher risk because they do not yet have extensive experience behind the wheel. They also may engage in risky behaviors such as texting while driving that make it more likely they will be involved in an accident. Our teen rates reflect the cost of a married couple’s policy with a 16-year-old driver added.
Cheapest Minnesota car insurance for teens with a ticket: North Star Mutual
As is true with adult drivers, teens who have a moving violation on their driving record are likely to pay more for their coverage, since insurers will view them as being at a higher risk of future infractions. For 18-year-old drivers on their own policy with a ticket looking for the cheapest car insurance in Minnesota, North Star Mutual and Iowa Farm Bureau stand out as offering the lowest average rates for minimum and full coverage, respectively.
Company | Avg. annual min coverage premium | Avg. annual full coverage premium |
---|---|---|
North Star Mutual | $1,135 | $5,298 |
State Farm | $1,158 | $2,814 |
Iowa Farm Bureau | $1,178 | $2,684 |
Auto-Owners | $1,235 | $3,980 |
Allstate | $1,295 | $7,973 |
Cheapest Minnesota car insurance for teens with an at-fault accident: North Star Mutual
Teens with an at-fault accident on their driving record may want to look at companies such as North Star Mutual and State Farm when searching for affordable insurance. Although their rates may seem high, they are among the cheapest car insurance companies in Minnesota for young 18-year-old drivers in this situation.
Company | Avg. annual min coverage premium | Avg. annual full coverage premium |
---|---|---|
North Star Mutual | $1,134 | $5,299 |
State Farm | $1,307 | $3,147 |
Western National | $1,324 | $4,726 |
Iowa Farm Bureau | $1,394 | $3,180 |
Allstate | $1,409 | $8,831 |
Bankrate’s take: Families with a teen driver may want to consider adding first-time accident forgiveness to their policy. This optional coverage, offered by some insurers, helps avoid the cost increase that many insurance companies automatically add to your premium after an accident, whether you are at fault or not. In general, this coverage "forgives" one at-fault accident — usually the first one that occurs after several years of being accident-free — so that your rate stays the same afterwards. There may be restrictions on this coverage, however, so talk to your agent if you are interested in purchasing this endorsement.
Cheapest Minnesota car insurance for young drivers with a DUI: Western National
Perhaps the most serious infraction you can earn on your license is a DUI. Insurers take this very seriously, and some carriers will not write policies for individuals who have this mark against them on their license. In Minnesota, Western National and American Family offered relatively low average rates for drivers who have been convicted of a DUI.
Company | Avg. annual min coverage premium | Avg. annual full coverage premium |
---|---|---|
Western National | $877 | $3,127 |
Allstate | $1,131 | $5,903 |
West Bend | $1,153 | $3,783 |
American Family | $1,266 | $3,006 |
Farmers | $1,277 | $2,418 |
Cheapest car insurance rates by city in Minnesota
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 avg. annual minimum coverage premium | Cheapest car insurance company | Company avg. annual minimum coverage premium |
---|---|---|---|
Blooming Prairie | $486 | North Star Mutual | $212 |
Duluth | $498 | North Star Mutual | $248 |
St. Cloud | $583 | North Star Mutual | $265 |
St. Paul | $670 | North Star Mutual | $334 |
Minneapolis | $676 | North Star Mutual | $385 |
City | City avg. annual minimum coverage premium | Cheapest car insurance company | Company avg. annual minimum coverage premium |
---|---|---|---|
Baudette | $448 | North Star Mutual | $245 |
Comstock | $447 | North Star Mutual | $232 |
Kennedy | $447 | North Star Mutual | $232 |
Perham | $443 | North Star Mutual | $232 |
Thief River Falls | $446 | North Star Mutual | $232 |
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.
- Young driver discounts: Many companies offer opportunities for young drivers to save by having good grades, leaving a car behind while away at college or taking a defensive driving course.
- Safe driver discounts: Drivers who don't file a claim for a set period of time, take a defensive driving course or enroll in a telematics program may save on their premiums with select carriers.
- Other discounts: Depending on your insurer, you may also be able to save for enrolling in paperless or automatic billing, having certain safety features in your car or bundling other insurance policies with your auto insurance.