Do I need more coverage than what is required?

It depends. The amount of coverage you need should be based on how much risk you are willing to take on. You can ask yourself how much you can afford to pay out-of-pocket if your vehicle got damaged or totaled in an accident, in addition to any medical expenses you might incur from injuries. Most insurance experts recommend full coverage to offer the most financial protection.

What information is needed to get car insurance in Minnesota?

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.

What is the difference between minimum coverage and full coverage?

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 coverages, 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.

What is the cheapest car insurance company in Minnesota?

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, insurance-based credit 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.

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Best car insurance in Minnesota for 2023

Written by

Carol Pope

Edited by

Angelica Leicht

Edited by

Angelica Leicht

Updated Sep 13, 2023

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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

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Bankrate’s insurance editorial team — which includes three licensed agents — has almost 50 years of combined industry experience. Every year, we help millions of readers decode the world of car insurance while guiding them to find the most robust policies at the cheapest rates.

We leveraged our agency experience to conduct a major study to find the best car insurance in Minnesota. We sourced premium data from analytics company Quadrant Information Services and considered other important factors such as digital tools, endorsement options and discounts. During this study, we learned that Minnesota has higher average rates than Iowa and North Dakota, probably due to its harsh winters. We also noticed that out of the cities we analyzed, Minneapolis was usually the most expensive, which could be due to its population density and levels of traffic.

Finally, we found that if you need the best car insurance in Minnesota, you may want to reach out to the companies below:

Best for discounts: Geico
Best for bunding: Auto-Owners
Best for households with teen and young drivers: State Farm
Best for cheap rates: American Family
Best for coverage add-ons: Farmers

Best car insurance companies in Minnesota

During our study of car insurance rate data, we learned that the average annual premium for a full coverage car insurance policy is $1,760 per year, with minimum coverage averaging $585. However, our time as licensed agents has taught us that drivers looking for the best car insurance aren’t always looking for the cheapest. To help you in your search, we’ve also analyzed customer satisfaction scores issues in the J.D. Power 2022 U.S. Auto Insurance study, financial strength ratings, discount availability and more.

With this in mind, Geico, Auto-Owners, State Farm, American Family and Farmers may offer the best Minnesota auto insurance.

Insurance company	J.D. Power score (Central region)	Average monthly full coverage premium	Average annual full coverage premium
Geico Rating: 4.4 stars out of 5 4.4 Bankrate Score	J.D. Power score (Central region) 847 /1,000	Average monthly full coverage premium $152	Average annual full coverage premium $1,818
Auto-Owners Rating: 4.2 stars out of 5 4.2 Bankrate Score	J.D. Power score (Central region) 821 /1,000	Average monthly full coverage premium $130	Average annual full coverage premium $1,555
State Farm Rating: 4.2 stars out of 5 4.2 Bankrate Score	J.D. Power score (Central region) 843 /1,000	Average monthly full coverage premium $95	Average annual full coverage premium $1,137
American Family Rating: 3.8 stars out of 5 3.8 Bankrate Score	J.D. Power score (Central region) 848 /1,000	Average monthly full coverage premium $92	Average annual full coverage premium $1,106
Farmers Rating: 3.8 stars out of 5 3.8 Bankrate Score	J.D. Power score (Central region) 828 /1,000	Average monthly full coverage premium $115	Average annual full coverage premium $1,377

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Insurance company	J.D. Power score (Central region)	Average monthly minimum coverage premium	Average annual minimum coverage premium
Geico Rating: 4.4 stars out of 5 4.4 Bankrate Score	J.D. Power score (Central region) 847 /1,000	Average monthly minimum coverage premium $45	Average annual minimum coverage premium $536
Auto-Owners Rating: 4.2 stars out of 5 4.2 Bankrate Score	J.D. Power score (Central region) 821 /1,000	Average monthly minimum coverage premium $38	Average annual minimum coverage premium $455
State Farm Rating: 4.2 stars out of 5 4.2 Bankrate Score	J.D. Power score (Central region) 843 /1,000	Average monthly minimum coverage premium $40	Average annual minimum coverage premium $483
American Family Rating: 3.8 stars out of 5 3.8 Bankrate Score	J.D. Power score (Central region) 848 /1,000	Average monthly minimum coverage premium $42	Average annual minimum coverage premium $507
Farmers Rating: 3.8 stars out of 5 3.8 Bankrate Score	J.D. Power score (Central region) 828 /1,000	Average monthly minimum coverage premium $57	Average annual minimum coverage premium $686

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Insurance Disclosure

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.

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Best for cheap rates

4.4 Bankrate Score

JD Power: 847/1,000 AM Best: A++

Average annual premium

^$ 1,818 for full coverage

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Why Geico made our list: Although Geico’s average premiums in Minnesota aren’t the lowest, the company offers a long list of savings opportunities that could help drive this base rate down. You could get a discount for being a military member, government employee, or through an affiliation with a professional group, fraternity, or sorority. Eligible drivers who complete a defensive driving course might also see some savings. Additionally, Geico’s telematics program DriveEasy is available in Minnesota, which could land safe drivers hefty savings for using a mobile app to track their driving habits. These extensive discount options helped Geico tie for the 2023 Bankrate Award for Best Auto Insurance Company Overall.

Who Geico may be good for: Geico’s coverage options are relatively basic, so it may be a good choice for drivers looking to save money on a no-frills car insurance policy.

Read full Geico Insurance review

Minnesota city	Geico full coverage premium	Geico minimum coverage premium
Duluth	$1,617	$455
Lakeville	$1,613	$565
Minneapolis	$1,684	$623
St. Cloud	$1,634	$555
St. Paul	$1,640	$595

Best for bundling

4.2 Bankrate Score

JD Power: 821/1,000 AM Best: A++

Average annual premium

^$ 1,555 for full coverage

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Average annual premium

^$ 1,555 for full coverage

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Why Auto-Owners made our list: Auto-Owners is sold through a network of independent agents, which could make it appealing to those who prefer the personal touch that a brick-and-mortar agency can provide. It may also offer the best auto insurance in Minnesota if you want to bundle your homeowners insurance. Policyholders who bundle their home and auto with Auto-Owners may only have one deductible across both policies if their home and auto are damaged in the same loss (a fire that starts in a garage, for instance). The company also offers a multi-policy discount which can help you save. Perhaps best of all, Auto-Owners’ homeowners policies with $250,000 in dwelling coverage are 48 percent lower than the state average. This might be a reason why Auto-Owners won the 2023 Bankrate Award for Best Budget Home Insurance Company.

Who Auto-Owners may be good for: Minnesotans in the market for auto and home insurance and prefer to do business in person with a local agent might find it worthwhile to contact Auto-Owners for a quote.

Read full Auto-Owners Insurance review

Minnesota city	Auto-Owners full coverage premium	Auto-Owners minimum coverage premium
Duluth	$1,485	$379
Lakeville	$1,492	$465
Minneapolis	$1,633	$544
St. Cloud	$1,520	$455
St. Paul	$1,625	$542

Best for households with teen and young drivers

4.2 Bankrate Score

JD Power: 843/1,000 AM Best: A++

Average annual premium

^$ 1,137 for full coverage

Get a quote

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Average annual premium

^$ 1,137 for full coverage

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Why State Farm made our list: State Farm offers more than one way for teens and young drivers to save on car insurance in Minnesota. State Farm’s Steer Clear program could help eligible drivers under 25 save up to 15 percent on their policy for enrolling and completing a self-study driving improvement program. In addition to helping young drivers save money, Steer Clear could help these newer drivers solidify safe driving habits. State Farm’s telematics discount Drive Safe & Save could also help safe drivers lower their premiums, and unlike some other telematics programs, State Farm will not add a surcharge to your policy if the company’s mobile app determines you are a risky driver.

Who State Farm may be good for: Minnesota families with licensed teens in their house might be interested in learning more about the discount opportunities State Farm offers for younger drivers.

Read full State Farm Insurance review

Minnesota city	State Farm full coverage premium	State Farm minimum coverage premium
Duluth	$1,137	$483
Lakeville	$1,120	$494
Minneapolis	$1,302	$615
St. Cloud	$1,148	$538
St. Paul	$1,191	$542

Best for cheap rates

3.8 Bankrate Score

JD Power: 848/1,000 AM Best: A

Average annual premium

^$ 1,106 for full coverage

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Average annual premium

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Why American Family made our list: Based on our premium data, American Family offers some of Minnesota's cheapest rates for full coverage car insurance. In addition to cheap rates, American Family has several discounts that could help you save even more. Some of these savings opportunities include the early bird discount, which you can earn by simply requesting an American Family quote at least a week before your current renewal. Just because American Family has cheap rates doesn't mean it skimps on customer service, though. In fact, the carrier won second place for overall customer satisfaction in the J.D. Power 2022 U.S. Auto Insurance Study in the Central region.

Who American Family may be good for: American Family could be optimal for budget-conscious drivers who also value customer service and coverage add-ons such as diminishing deductibles, emergency road service and gap insurance.

Read full American Family Insurance review

Minnesota city	American Family full coverage premium	American Family minimum coverage premium
Duluth	$1,078	$439
Lakeville	$1,034	$505
Minneapolis	$1,171	$594
St. Cloud	$1,064	$490
St. Paul	$1,218	$619

Best for coverage add-ons

3.8 Bankrate Score

JD Power: 828/1,000 AM Best: A

Average annual premium

^$ 1,377 for full coverage

Get a quote

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Average annual premium

^$ 1,377 for full coverage

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Why Farmers made our list: Farmers offers a wide range of add-ons that you might not find with other carriers. Aside from the standard coverage types you’ll find on all Minnesota car insurance policies, such as bodily injury liability and property damage liability, you can augment your policy through several endorsements. Some of Farmers’ stand-out options include original equipment manufacturer (OEM) parts coverage, which could cover the additional cost of using OEM parts rather than after-market to repair your vehicle after a loss. Hobby mechanics and those who own classic cars might be interested in adding Farmers’ spare parts coverage, which can pay up to $750 to replace spare parts damaged in a covered loss.

Who Farmers may be good for: Farmers might be a good option for Minnesotans willing to pay a little extra for robust coverage options.

Read full Farmers Insurance review

Minnesota city	Farmers full coverage premium	Farmers minimum coverage premium
Duluth	$1,359	$614
Lakeville	$1,340	$666
Minneapolis	$1,461	$762
St. Cloud	$1,277	$624
St. Paul	$1,411	$738

How Bankrate chose the best car insurance companies in Minnesota

Bankrate first studied average premium data provided by Quadrant Information Services for some of the largest auto insurance companies in Minnesota by market share. We then rounded out our study by ranking each company using our proprietary Bankrate Scores.

Bankrate Scores (ranging from 0.0 to 5.0) measure a company across a range of metrics, including third-party customer service scores, nationwide availability, coverage options, digital tools and more. With this information, we hope to give our readers an easy way to evaluate a company accurately and holistically.

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.

How much is car insurance in Minnesota?

In the North Star State, the average cost of auto insurance is about $1,760 per year for a full coverage policy. This is slightly cheaper than the national average rate of $1,771 for a full coverage policy. Minimum coverage in Minnesota is $585 per year, which is also lower than the national average of $622.

While Minnesota's average premiums may be lower than the national average, its rates are rather high when compared to some nearby states. For instance, Iowa's average full coverage premium is $1,315 per year. North Dakota has a similar average full coverage premium at $1,302. Minnesota's rates may be higher because of the amount of snow the state gets, thanks to Minnesota's proximity to Lake Michigan and Lake Superior. Lots of snow leads to slippery roads and an increase in car insurance claims, which could lead to higher rates.

Average annual premium for minimum coverage in Minnesota	Average annual premium for full coverage in Minnesota
$585	$1,760

How to find the best car insurance in Minnesota

Getting the best car insurance depends on you and your unique circumstances. The best car insurance for you might not be the best option for your neighbor. Here are some things you should consider when shopping for car insurance:

Consider minimum insurance requirements in Minnesota

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.

Consider lender requirements

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 your car if you’re the driver in an at-fault accident or if your car is damaged through theft, vandalism and inclement weather, among other things. 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.

Consider your individual needs

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.

Frequently asked questions

It depends. The amount of coverage you need should be based on how much risk you are willing to take on. You can ask yourself how much you can afford to pay out-of-pocket if your vehicle got damaged or totaled in an accident, in addition to any medical expenses you might incur from injuries. Most insurance experts recommend full coverage to offer the most financial protection.
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 coverages, 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, insurance-based credit 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.

Written by

Carol Pope

Former Writer, Insurance

Best car insurance in Minnesota for 2023

The Bankrate promise

What To Know First

On This Page

Best car insurance companies in Minnesota

Car insurance rates methodology

Compare auto insurance rates

Best for cheap rates

Best for bundling

Best for households with teen and young drivers

Best for cheap rates

Best for coverage add-ons

How Bankrate chose the best car insurance companies in Minnesota

Bankrate Score

How much is car insurance in Minnesota?

How to find the best car insurance in Minnesota

Consider minimum insurance requirements in Minnesota

Consider lender requirements

Consider your individual needs

Frequently asked questions

Do I need more coverage than what is required?

What information is needed to get car insurance in Minnesota?

What is the difference between minimum coverage and full coverage?

What is the cheapest car insurance company in Minnesota?