Best car insurance in Minnesota for 2022
In 2018, there were just under 80,000 car accidents in the state of Minnesota. Every driver is required to carry car insurance to protect themselves and other drivers on the road. The average cost of car insurance in Minnesota is $1,643 per year for a full coverage policy, according to Bankrate’s 2021 study of quoted annual premiums. To help drivers find the best auto insurance in Minnesota, our insurance editorial team assessed policies from several top insurers in the state to narrow down the best offerings.
Best car insurance companies in Minnesota
Drivers can purchase auto insurance from a number of different car insurance companies in Minnesota. To make your search a little easier, we put together a list of the best Minnesota auto insurance companies, based on market share, average rates, coverages, discounts and customer satisfaction reviews. We also gave each company a Bankrate Score, which accounts for factors like price, coverage, customer service and financial strength as outlined in our Methodology below.
|Car insurance company||Bankrate Score||Average annual full coverage premium||J.D. Power customer satisfaction score (Central region)|
|Geico||4.6||$1,467||845 / 1,000|
|State Farm||4.4||$3,856||847 / 1,000|
|Progressive||4.1||$1,394||837 / 1,000|
|Allstate||3.6||$2,726||826 / 1,000|
|Farmers||3.5||$4,471||848 / 1,000|
Geico is rated above average for overall customer satisfaction in the 2021 J.D. Power’s U.S. Auto Insurance Study for the Central region and has an A++ financial strength rating from AM Best. Geico is known for being one of the cheapest car insurance companies in Minnesota. The company also offers great discounts for federal employees, military personnel, safe drivers and more. However, Geico offers basic coverage. Some may find it perfect for Minnesota drivers who need a bare-bones policy and are looking for the lowest rate.
Learn more: Geico Insurance review
State Farm is one of the most reputable insurance companies in the U.S. and insures more drivers than any other company. In Minnesota, State Farm’s average premiums are more expensive, but the company has a variety of discounts for extra savings. Drivers can also personalize their policy with several endorsements, including rideshare insurance. State Farm may be a great option for young drivers in Minnesota who can take advantage of its teen and safe driver discounts. The company has an above-average J.D. Power ranking or overall customer satisfaction in the Central region.
Learn more: State Farm Insurance review
Progressive is known for offering some of the best car insurance discounts. There are savings for bundling your policies, paying your premium in full, being a good student, being a safe driver and many more. Safe drivers can save an average of $146 by enrolling in Progressive’s Snapshot rewards program. Policyholders tend to enjoy Progressive’s helpful online resources, like the Name Your Price Tool, which allows you to build a policy within your budget. For more coverage, you can add gap insurance, custom parts coverage, roadside assistance and more.
Learn more: Progressive Insurance review
Allstate is one of the biggest names in auto insurance. The provider may be a good option for Minnesota drivers who want to add to their coverage with endorsements. Some of the add-ons available from Allstate include sound system insurance, accident forgiveness, new car replacement coverage and rental car reimbursement. You could save money by qualifying for discounts or bundling your policies. Additionally, Allstate offers a pay-per-mile program called Milewise, which could be useful if you drive infrequently.
Learn more: Allstate Insurance review
In the 2021 J.D. Power U.S. Auto Insurance Study, Farmers ranks as the second best company for overall customer satisfaction in the Central region. Farmers offers some of the best endorsements on the market, including original equipment manufacturer coverage, guaranteed value coverage and others. The biggest downside to Farmers may be that its rates are much higher than average in Minnesota. However, the company offers lots of discounts that could help lower your rate. There are savings for being claims-free, bundling your policies and enrolling in the Signal safe driver program, as well as state-specific discounts.
Learn more: Farmers Insurance review
Average cost of car insurance in Minnesota
In the North Star State, the average cost of auto insurance is about $1,643 per year for a full coverage policy. This is slightly cheaper than the national average rate of $1,674 for a full coverage policy.
|Average annual premium for minimum coverage in Minnesota||Average annual premium for full coverage in Minnesota|
State minimum insurance requirements in Minnesota
Auto insurance is required by law in Minnesota. All drivers must have a minimum of 30/60/10 personal liability insurance, as well as uninsured and underinsured motorist coverage (UM/UIM) and personal injury protection (PIP) to satisfy the state’s no-fault laws. Here is what coverages are required:
- $30,000 in bodily injury liability per person
- $60,000 in bodily injury liability per accident
- $25,000 in UM/UIM coverage per person
- $50,000 in UM/UIM coverage per accident
- $10,000 in property damage liability coverage per accident
- $40,000 in personal injury protection
Car insurance rates vary by state, and the amount of coverage required has a big impact on the average premium. In Minnesota, a minimum coverage insurance policy is often the cheapest option. However, it is a good idea to increase your liability coverage limits or purchase a full coverage policy for more protection. If you lease or finance your vehicle, a full coverage policy may be required.
How to get the best car insurance
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:
- Evaluate your individual needs: You may have particular needs that impact your car insurance decision. For example, if you have children who are about to start driving, you will likely consider the cost of adding a teen driver to your policy. Many insurance companies offer teen driving discounts and good student discounts, which can help you save on your insurance premiums.
- Consider state factors: The number of uninsured and teen drivers in your area code, the theft rate and demographics all affect your insurance premium prices. According to the III, 9.9% of drivers in Minnesota are uninsured, which means obtaining a higher amount of uninsured motorist coverage may be a good option to protect you from out-of-pocket costs for any no-fault accidents.
Car insurance discounts in Minnesota
One of the best ways to get affordable car insurance in Minnesota is to look for companies that offer discounts. Here are some of the discounts that most car insurance companies in Minnesota offer:
- Pay in full discount: If you choose to pay your annual premium upfront and in full, you can probably save some money on your insurance policy.
- Good student discount: Good students who maintain a set minimum GPA in high school or college often qualify for reduced premiums.
- Claim-free discount: If you have no insurance claims on your record within the last few years, many insurance companies will lower your rate.
- AutoPay discount: Enrolling in automatic payments can help you get a better rate if you choose to pay your premium monthly or quarterly.
While all of these discounts are available in Minnesota, the exact savings will vary. For example, Progressive’s good student discount can help you save an average of 10%, but the same discount from State Farm can save you up to 25%. When comparing insurance companies, it is a good idea to look at the average savings for every discount you qualify for to get the best rate.
Frequently asked questions
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.
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 base profile drivers own a 2019 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.