The average cost of car insurance in Minneapolis, Minnesota, is $1,809 per year for full coverage or $151 per month. Minimum coverage car insurance costs an average of $676 per year, or $56 per month. To find the best cheap carriers in Minneapolis, Bankrate’s insurance editorial team assessed average premiums, coverage options, discounts, customer service and more. Among carriers that met our rating criteria, we found that American Family, State Farm, and Farmers offered some of the cheapest average rates in Minneapolis for full coverage car insurance.

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Best cheap car insurance companies in Minneapolis

Bankrate determined the cheapest car insurance in Minneapolis by analyzing average annual auto insurance premiums with data provided by Quadrant Information Services. Based on our findings, American Family, State Farm and Farmers offered some of the cheapest car insurance policies for both minimum and full coverage policies.

While price may be important, it’s likely not your only consideration when choosing the best auto carrier. 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. After compiling this information, we were able to assign each company a Bankrate Score — on a 5.0 scale — which reflects each carrier’s overall performance across these multiple rating categories.

Insurance company Bankrate Score J.D. Power score (Central region) Average annual premium for full coverage Average annual premium for minimum coverage
American Family 3.8 848/1,000 $1,171 $594
State Farm 4.2 843/1,000 $1,302 $615
Farmers 3.8 828/1,000 $1,461 $762
Nationwide 3.9 800/1,000 $1,545 $721
Auto-Owners 4.2 821/1,000 $1,633 $544

American Family

American Family may be one of the best insurers to consider for drivers looking to switch carriers, as it advertises a discount for policyholders to switch to AmFam from another competitor. In addition to low average rates in Minneapolis, drivers may be able to save even more on their premium with potential discounts for low mileage, early quoting and volunteering with a nonprofit (for drivers under 25). Although AmFam scored highly in J.D. Power’s 2022 Auto Insurance Study, its digital tools may not be as robust as some other carriers on this list.

Learn more: American Family Insurance review

State Farm

State Farm has over 10 local agents in Minneapolis, so it may be a good carrier for drivers looking for low rates and personalized service. The carrier has many discounts, including two telematics programs and multiple savings opportunities for young drivers. If you have a less-than-perfect driving record, you may still be able to find low rates with State Farm. The carrier is our 2023 Bankrate Award winner for Best Auto Insurance for High-Risk Drivers. Although it does offer car rental coverage and roadside assistance, State Farm does not offer gap coverage, which may be a concern for drivers who finance their vehicles.

Learn more: State Farm Insurance review


Farmers may be a good company for drivers who value robust policy endorsements. The carrier offers several unique coverage options, like new car replacement and windshield and glass coverage. Although Farmers scored below the segment average in the Central region of J.D. Power’s study, it does have a lower number of complaints than expected with the National Association of Insurance Commissioners (NAIC) for its private passenger auto product. You may be able to save on your Farmers policy with potential discounts for hybrid and electric vehicles, leaving your vehicle at home while away at college and having family members who are also insured with Farmers.

Learn more: Farmers Insurance review


Nationwide offers several coverage options, which may make it easy for drivers to customize their policies. Although it scored below average in the J.D. Power study, drivers may find coverage options that may not be offered by other car insurance companies, such as accident forgiveness and vanishing deductibles. Drivers who have older or classic cars may also find car insurance coverage through Nationwide. If you don’t drive very much, Nationwide’s pay-per-mile insurance program, SmartMiles, may be an affordable option for you.

Learn more: Nationwide insurance review


As a more regional carrier only writing policies in 26 states, Auto-Owners may be a less familiar name for Minneapolis drivers. Nonetheless, the carrier offers robust vehicle coverage options, including roadside assistance, gap insurance and diminished value coverage. Policyholders who bundle their home and auto with Auto-Owners may also be able to pay a single deductible if a covered event damages both their home and vehicle. Auto-Owners has local agents available for a more personalized service experience, but it did score below the segment average in the J.D. Power study, so potential policyholders may want to speak with existing customers about their experience.

Learn more: Auto-Owners Insurance review

How to get and keep the cheapest car insurance in Minneapolis

Car insurance rates are based on a variety of factors, and each company may weigh these factors differently than others. To find and keep the cheapest car insurance in Minneapolis, you may want to start with these strategies:

  • Shop around and compare rates. The cheapest car insurance in Minneapolis will vary for each driver. Shopping around and comparing quotes may help you narrow down the cheapest carrier for your specific needs. You may want to compare rates after buying a new car, moving or improving your credit score.
  • Reduce your risk. Carriers determine rates based on insurable risk, where the less risk you pose as an insured, the cheaper your rates typically are. Having a history of traffic violations or claims on your record will likely increase your risk. Remaining accident-free, driving at posted speed limits and avoiding unnecessary claims may all go a long way in helping you achieve low rates.

Frequently asked questions

    • There is no one-size-fits-all when it comes to the best car insurance companies. Certain coverage options and discounts offered by one company may not match those offered by others. For this reason, most drivers typically 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 and additional coverage types beyond state minimum requirements to better protect your finances in the event of an accident. Working with an agent may help you determine the best amount of car insurance for your needs.
    • Although Minneapolis has average full coverage car insurance rates below the national average, its rates do come in slightly above the Minnesota state average of $1,643 per year for full coverage. As a densely populated city, Minneapolis may have higher average rates due to more congested roadways and higher crime rates.
    • Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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 2021 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.
    • Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
      • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
      • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
      • Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.