Best car insurance in Minnesota for 2023

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.

Almost every state requires its drivers to carry a minimum amount of liability insurance to drive legally on public roads. Minnesota is no exception. Although it’s impossible to purchase a legitimate Minnesota car insurance policy with lower-than-state-minimum limits, you might find it helpful to review the state’s insurance laws and requirements, especially since Minnesota is a no-fault state.

Most insurance agents recommend drivers carry more than Minnesota state minimum coverage, and if you’re financing or leasing your car, your lender will likely require it. Since your financing or leasing company has a financial interest in your vehicle while you pay it off, it will usually require you to carry comprehensive and collision. These options provide financial protection for physical damage to your own vehicle. Those who lease may have additional insurance requirements regarding their liability limits. To ensure you’re meeting the terms of your loan (and avoid force-placed insurance), your insurance must meet your lender’s requirements.

Insurance is a personalized product, and the policies that offer the best financial protection may be the ones that are tailored to your individual needs. For instance, if you’re financing a vehicle with a smaller-than-average down payment, you might want to consider gap insurance. Perhaps you have an inexperienced young driver in the house, so accident forgiveness could be important. Thinking about your priorities and needs before gathering quotes might help you find an affordable yet robust policy.

To get an auto insurance quote, you will need to provide your address, the make, model and year of your car, and birthdate. You will likely be asked about your driving habits, such as if you drive for commuting purposes or for recreation, and your history of accidents. You might also have to enter the VIN number for your vehicle so the insurance company can review your accident history and get a better sense of the car’s condition.

A minimum coverage policy, which is required in Minnesota, includes personal liability insurance, uninsured and underinsured motorist coverage and personal injury protection. A full coverage policy includes these coverage types, plus collision and comprehensive coverage. Keep in mind that drivers who lease or finance their car through a lender are often required to carry a full coverage policy until the loan is repaid.

According to rate data provided by Quadrant Information Services, the cheapest car insurance companies in Minnesota for minimum coverage may be North Star Mutual, West Bend and Iowa Farm Bureau. However, auto insurance rates are specific to your specific underwriting profile. In other words, insurance companies typically use more than ten rating factors to determine your premium. In Minnesota, these could include your age, gender, credit-based insurance score, ZIP code, the type of vehicle you drive and more. Since car insurance rates are based on these personal factors, no one company in Minnesota is the cheapest for every driver. Although it takes some work, the best tactic to find the lowest rates may be to compare quotes and shop around.

Minnesota drivers pay lower average full and minimum coverage rates than the national average. However, their rates are higher than the average rates in nearby states such as Iowa and North Dakota. It's worth noting that your own rate will differ from these averages since rates are personalized based on more than a dozen rating factors, and pricing algorithms vary by company.