Cheapest car insurance in Minnesota 2022

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Car insurance is legally required in Minnesota. In a state with over 3,351,400 licensed drivers in the state, having car insurance offers valuable protection. The average Minnesota driver pays $1,643 for full coverage insurance and $537 for minimum coverage insurance. However, there are several ways that Minnesota drivers can get cheap car insurance.

The cheapest car insurance companies in Minnesota

Cheap car insurance in Minnesota is not hard to find. The following car insurance companies offer the cheapest auto insurance policies in the North Star State on average:

Car insurance company Average annual premium for minimum coverage Average annual premium for full coverage
Auto-Owners $430 $1,366
Automobile Club Minnesota (AAA) $487 $1,777
Country Financial $519 $2,022
State Farm $483 $1,167
USAA $461 $1,491


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. It offers comprehensive insurance coverage, good discounts, and cheap policies.

The average Minnesota driver pays $1,366 per year for a full coverage policy from Auto-Owners and $430 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.

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 $1,777 for full coverage insurance and $487 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.

Country Financial

Country Financial is available in 19 states, including Minnesota. In addition to the standard types of coverage like comprehensive and collision insurance, there are also plenty of options for add-on coverage. The Keeper® is Country Financial’s signature service that will replace your brand-new car with the exact same make and model so you don’t lose any value on your new ride if you get in an accident. There is also emergency road service coverage with up to $100 reimbursement, vehicle rental and trip interruption coverage, personal effects coverage up to $800, and safety glass coverage for your windshield, car windows and headlights. Local reps can help you decide exactly what coverage is right for you.

Ways to save with discounts may include loyalty, multi-policy, multi-car, legacy and good driver discounts, depending on your eligibility. There are potential special savings for new drivers, good students and college graduates and occupational discounts for teachers and public safety officers. There are even discounts for couples who are recently engaged.

State Farm

Drivers who are looking for the cheapest car insurance in Minnesota should look no further than State Farm. The average driver pays $1,167 per year for full coverage car insurance and $483 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 $1,491 per year for full coverage insurance and $461 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.

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. 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 car insurance 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 rate 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 may 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 $1,674 for a full coverage policy. The average full coverage car insurance rate in Minnesota is $1,643. 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 2019 Toyota Camry, 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.

Rates are determined based on 2021 data from Quadrant Information Services.