The average cost of car insurance in Minneapolis, Minnesota, is $1,980 per year for full coverage, or $152 per month. Minimum coverage car insurance costs an average of $725 per year, or $60 per month. While car insurance in Minneapolis is about on par with the national average, drivers can find even cheaper rates while still staying financially protected in the event of an accident.


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As part of determining the best car insurance in Minneapolis, Bankrate’s insurance editorial team assessed the cheapest car insurance companies in the area by average premium and available coverage and discounts. We found that American Family and State Farm offered some of the cheapest average rates in Minneapolis for full coverage car insurance, but they may not be the right carriers for everyone. To find the best cheap car insurance for you, it may be helpful to start with Bankrate’s curated picks.

Best cheap car insurance companies in Minneapolis

Bankrate arrived at its choices for the cheapest car insurance in Minneapolis, Minnesota, by analyzing average annual auto insurance premiums from Quadrant Information Services. Based on our findings, American Family, State Farm and USAA offered some of the cheapest car insurance policies for both minimum and full coverage policies.

While price is important, it’s important to look at a carrier holistically as well. Bankrate’s editorial team also reviewed each insurance company’s available coverage options and discounts, AM Best financial strength ratings and J.D. Power customer satisfaction scores. Industry-trusted third-party ratings help provide a more well-rounded view of how a provider performs across several important aspects, such as customer service and claim payout capability. By compiling this information, we were able to assign each company a Bankrate Score — scored on a 5.0 scale — which reflects their overall performance amongst these categories and price.

Insurance company Bankrate Score J.D. Power score (Central region) Average annual premium for full coverage Average annual premium for minimum coverage
American Family 4.3 848/1,000 $1,212 $631
State Farm 4.7 843/1,000 $1,293 $649
USAA* 4.9 879/1,000 $1,678 $615
Auto-Owners 4.5 821/1,000 $1,708 $628
AAA 3.8 838/1,000 $1,966 $545

*Not officially ranked with J.D. Power due to eligibility restrictions

American Family

American Family may be one of the best insurers to consider for drivers looking to switch carriers, as it promotes that policyholders who make the switch could qualify for two stackable discounts. There are discount opportunities for customer loyalty, early signing and purchasing multiple policy types. However, those wanting a superior digital experience may need to consider other carriers. In J.D. Power’s 2022 Digital Experience Study, American Family scored below average in digital service and shopping based on customer feedback.

Learn more: American Family Insurance review

State Farm

State Farm is a well established and respected insurer that distinguishes itself with an easy-to-use website. Its digital presence provides a host of readily accessible information to help users build their own policy packages that meet their needs. As the cheapest full coverage provider on our list, State Farm could be a great choice for those looking for reliable coverage at affordable rates. However, its minimum coverage policies average as the second most expensive on our list, making it a less viable option for Minneapolis drivers seeking the lowest coverage allowed. State Farm offers a number of valuable options, including specialized programs designed exclusively for teen drivers and coverage for antique car collectors.

Learn more: State Farm Insurance review


USAA is only available to its members — active and former military and their families. Because of its customer base, the company may be the best option for military families seeking cheap car insurance companies. There are even military-centric savings opportunities, like a discount for storing a vehicle on base. J.D. Power does not rank USAA in its customer satisfaction surveys, but it does score the company. With a score of 879 — 13 points higher than the ranked leader in the Central region — USAA’s customers clearly have a high level of satisfaction with the company’s service. USAA offers an annual minimum coverage premium that is below the average annual premium in Minneapolis of $828.

Learn more: USAA Insurance review


Auto-Owners’ J.D. Power score of 821 ranks the carrier below average in the Central region. But when it comes to car insurance rates, Auto-Owners offers car insurance rates below the average premiums in Minneapolis for both minimum and full coverage. The company is particularly strong in its ability to tailor coverage to meet the needs of its customers, such as its Plus package, which offers more than 10 additional coverage options.

Learn more: Auto-Owners Insurance review


With the cheapest average minimum coverage policy on our list, AAA may be the best option for drivers seeking liability-only coverage. With it, Minneapolis drivers could save more than $400 per year. While there aren’t any early signing discounts, there are several multi-policy discounts, including auto and home bundle savings. Additionally, there are savings for good driving, supplying up-to-date odometer readings and maintaining your AAA policy for at least one full year.

Learn more: AAA Insurance review

Minneapolis insurance requirements

Drivers in Minnesota are required to carry a minimum amount of car insurance if they own a car. In Minnesota, drivers are required to carry a minimum amount of bodily injury and property damage liability, uninsured motorist coverage and personal injury protection. Below is a breakdown of car insurance requirements in Minnesota:

  • $30,000 bodily injury liability per person
  • $60,000 bodily injury liability per accident
  • $10,000 property damage liability per accident
  • $25,000 uninsured motorist bodily injury per person
  • $50,000 uninsured motorist bodily injury per accident
  • $25,000 underinsured motorist bodily injury per person
  • $50,000 underinsured motorist bodily injury per accident
  • $40,000 personal injury protection (PIP)

These coverage requirements for Minnesota drivers offer a baseline amount of protection in the event of an accident. Bodily injury and property damage liability apply toward the other party if you cause an accident. On the other hand, uninsured and underinsured motorist coverage typically apply when someone else causes an accident but their insurance isn’t enough to cover your damages. As a no-fault state, Minnesota law also requires personal injury protection, which is meant to cover you and any passengers involved in an accident that resulted in the need for payment for issues like medical expenses and lost wages.

Drivers in Minnesota can choose to buy higher limits than state requirements for better coverage and can also add optional coverage. This includes comprehensive and collision coverage that insures your vehicle if you’re involved in an accident, as well as roadside assistance, rental car reimbursement and more.

How to get and keep the cheapest car insurance in Minneapolis

Finding cheap quotes is an important part of narrowing down your cheapest car insurance options, but there are multiple factors that go into helping you secure the lowest price. Considering the following tips can help you nail down the cheapest company for you.

  • Note your coverage needs. Comparing average quotes is just the start. When comparing providers side-by-side, it helps to have an apple-to-apples comparison for the same amounts and types of coverage, including options like roadside assistance or full glass repair. Each provider will quote a different amount, so knowing the coverage you need can help make your cheapest option clearer.
  • Reduce your risk. Carriers determine rates based on insurable risk, where the less risk you pose as an insured, the cheaper your rates. Remaining accident-free, driving at posted speed limits and avoiding unnecessary claims can all go a long way in helping you achieve the lowest rate.

Frequently asked questions

    • There is no one-size-fits-all insurer that provides the best car insurance coverage for everyone. Certain coverage options and discounts offered by one company may not match those offered by others. For this reason, many drivers decide to research multiple companies and obtain several quotes for comparison.
    • The amount of car insurance you need typically depends on a range of factors, like your personal finances, risk level and the coverage you feel is necessary. Insurance professionals generally recommend purchasing higher liability limits beyond the minimum requirements to better protect your finances in the event of an accident. You can also purchase optional coverage, like gap coverage, accident forgiveness and other coverage if you want additional protection. Working with an agent may help you determine the best amount of car insurance for your needs.
    • According to the most up-to-date premium data from Quadrant Information Services, the average cost of car insurance in Minneapolis is $1,823 per year for a full coverage policy and $725 per year for a minimum coverage policy. Your individual rate may be more or less than the city average based on personal factors such as your vehicle make and model and driving record.


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 coverages that meet each state’s requirements. Our sample drivers own a 2020 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.

Bankrate Score

Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.

While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.