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Cheapest Car Insurance Minnesota

The Cheapest Minnesota Car Insurance Rates Are $345 Per Year for Liability Insurance From USAA and $1,060 Per Year for Full Coverage From USAA.

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Updated: Apr 11, 2024

Written by: Daniel Robinson

Written by: Daniel Robinson Writer

Daniel is a MarketWatch Guides team writer and has written for numerous automotive news sites and marketing firms across the U.S., U.K., and Australia, specializing in auto finance and car care topics. Daniel is a MarketWatch Guides team authority on auto insurance, loans, warranty options, auto services and more.

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Edited by: Rashawn Mitchner

Edited by: Rashawn Mitchner Managing Editor

Rashawn Mitchner is a MarketWatch Guides team editor with over 10 years of experience covering personal finance and insurance topics.

Senior Editor

Finding cheap car insurance in Minnesota isn’t always easy, but it’s not impossible, either. We at the MarketWatch Guides Auto Team have reviewed the best car insurance companies with the cheapest rates in Land of 10,000 Lakes.

To help you find the best deal for your Minnesota car, we’ll cover company ratings, reviews, coverage, insurance laws and more — with estimates for drivers from different profiles and a list of recommended providers.

Related Resources

Cheapest Car Insurance Companies Car Insurance Rates by State 10 Largest Car Insurance Companies in the U.S. Best Car Insurance Companies Average Cost of Car Insurance

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Cheapest Car Insurance in Minnesota

Because insurance coverage rates are slightly cheaper in Minnesota than the national average, you have a good chance at finding great car insurance in Minnesota at excellent prices. Here, we’ll look at the cheapest car insurance companies and coverage options in the state, beginning with the most affordable providers and coverage options.

Cheapest Car Insurance Companies in Minnesota

When shopping for car insurance, it’s important to look at providers’ prices but also while considering factors like claims satisfaction and discount availability. Below are our top five recommendations for car insurance in Minnesota, and our ratings for each across several categories.

We recommend looking into State Farm, USAA, Geico, Liberty Mutual and American Family Insurance for the cheapest auto insurance in Minnesota.

Top Minnesota Car Insurance Companies	Overall Rating	Coverage Rating	Cost Rating	Learn More
State Farm Learn More	9.2	9.0	9.0	Learn More
USAA Learn More	9.5	9.5	10.0	Learn More
Geico Learn More	9.2	8.5	9.4	Learn More
Liberty Mutual Learn More	8.8	9.0	8.0	Learn More

Top Minnesota Car Insurance Companies	Overall Rating	Coverage Rating	Cost Rating	Learn More
State Farm Learn More	9.2	9.0	9.0	Learn More
USAA Learn More	9.5	9.5	10.0	Learn More
Geico Learn More	9.2	8.5	9.4	Learn More
Liberty Mutual Learn More	8.8	9.0	8.0	Learn More

*Our research team considers nationwide factors when scoring providers. The ranking of providers in this table is specific to car insurance in Minnesota.

Cheapest Car Insurance Coverage in Minnesota

Our rate estimates revealed that drivers in Minnesota can find full coverage car insurance for as cheap as $1,060 per year and minimum coverage as low as $345 per year. Below are the largest providers in Minnesota, ranked by the cheapest coverage cost.

Car Insurance Company	Minimum Liability Annual Estimate	Full Coverage Annual Estimate
USAA	$345	$1,060
Auto-Owners Insurance	$353	$1,541
North Star Mutual Insurance Company	$437	$1,832
Geico	$483	$1,275
State Farm	$490	$1,228
Western National Insurance	$561	$1,881
Allstate	$632	$2,111
American Family Insurance	$701	$1,288
Travelers	$742	$1,690

These estimates are based on a 35-year-old driver with good credit and a clean driving record. Your rates will vary depending on factors like your age, credit history, driving record and more. When shopping around, always be sure to compare car insurance quotes to find the best option for you.

Cheap Car Insurance in Minnesota

Age, driving histories and credit scores can have huge impacts on the cost of car insurance in Minnesota. Below we compare cheap car insurance estimates for Minnesota drivers in these categories.

Cheapest Car Insurance for Young Drivers in Minnesota

Young drivers in their teens and early 20s can pay significantly more for car insurance than older adults. The series of tables below show the cheapest car insurance for young drivers in Minnesota, along with estimated monthly and annual costs.

Cheapest Minnesota Auto Insurance for 16-Year-Olds

Sixteen-year-olds on their own insurance can find full coverage as low as $3,036 per year.

Cheapest Car Insurance in Minnesota	Estimated Monthly Cost	Estimated Annual Cost
State Farm	$253	$3,036
Auto-Owners Insurance	$280	$3,355
North Star Mutual Insurance Company	$287	$3,442
Geico	$312	$3,743
USAA	$344	$4,122

Cheapest Minnesota Car Insurance for 17-Year-Olds

Car insurance prices are slightly cheaper for 17-year-olds in Minnesota, with average costs starting at $2,726 per year.

Cheapest Car Insurance in Minnesota	Estimated Monthly Cost	Estimated Annual Cost
State Farm	$227	$2,726
Auto-Owners Insurance	$259	$3,113
USAA	$268	$3,213
Geico	$282	$3,380
North Star Mutual Insurance Company	$287	$3,442

Cheapest Minnesota Car Insurance for 18-Year-Olds

Eighteen-year-olds can find full coverage insurance as low as $2,470 per year on average in Minnesota.

Cheapest Car Insurance in Minnesota	Estimated Monthly Cost	Estimated Annual Cost
State Farm	$206	$2,470
USAA	$219	$2,623
Auto-Owners Insurance	$238	$2,859
American Family Insurance	$265	$3,182
Geico	$272	$3,260

Cheapest Minnesota Car Insurance for 21-Year-Olds

Prices for car insurance in Minnesota drop for 21-year-olds. Drivers can find full coverage policies as low as $1,631 per year.

Cheapest Car Insurance in Minnesota	Estimated Monthly Cost	Estimated Annual Cost
USAA	$136	$1,631
Geico	$160	$1,914
State Farm	$161	$1,927
Auto-Owners Insurance	$175	$2,103
American Family Insurance	$182	$2,188

Cheapest Minnesota Car Insurance for 25-Year-Olds

In Minnesota, 25-year-olds can find full coverage insurance as cheap as $1,341 per year on average.

Cheapest Car Insurance in Minnesota	Estimated Monthly Cost	Estimated Annual Cost
USAA	$112	$1,341
Geico	$117	$1,406
State Farm	$118	$1,415
American Family Insurance	$123	$1,471
Auto-Owners Insurance	$146	$1,748

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Cheapest Minnesota Car Insurance for High-risk Drivers

At-risk drivers who have had a speeding ticket, DUI or recent accident can pay substantially more for auto insurance. The sections below provide estimates for the cheapest car insurance rates for drivers who may fall into these categories.

Cheapest Minnesota Car Insurance for Drivers With a Speeding Ticket

If you get a speeding ticket, you can count on your auto insurance rates going up. On average, Minnesota drivers with a speeding ticket pay around $2,217 per year for full coverage insurance.

Car Insurance Company	Estimated Monthly Cost	Estimated Annual Cost
State Farm	$117	$1,408
USAA	$133	$1,597
Geico	$134	$1,609
American Family Insurance	$147	$1,768
Auto-Owners	$174	$2,087

Cheapest Minnesota Car Insurance for Drivers With a Recent Accident

Having an at-fault accident on your record can raise your rates substantially. On average, drivers with a recent accident pay around $2,918 per year for full coverage insurance in Minnesota.

Car Insurance Company	Estimated Monthly Cost	Estimated Annual Cost
State Farm	$127	$1,518
American Family Insurance	$138	$1,650
USAA	$180	$2,157
Auto-Owners	$216	$2,588
Travelers	$222	$2,667

Cheapest Minnesota Car Insurance for Drivers With a DUI

As a serious traffic violation, a DUI can send your car insurance premiums soaring. On average, full coverage insurance costs around $3,567 per year for drivers with a DUI.

Car Insurance Company	Estimated Monthly Cost	Estimated Annual Cost
State Farm	$117	$1,408
American Family Insurance	$147	$1,768
Western National Group	$172	$2,059
USAA	$199	$2,388
Travelers	$226	$2,713

Cheapest Minnesota Car Insurance for Drivers With Poor Credit

In Minnesota, insurance companies are legally allowed to adjust your premiums based on your credit score. On average, Minnesota drivers with poor credit scores pay $3,107 per year for a full coverage policy.

Car Insurance Company	Estimated Monthly Cost	Estimated Annual Cost
Geico	$135	$1,620
USAA	$181	$2,169
American Family Insurance	$213	$2,558
State Farm	$220	$2,645
Progressive	$240	$2,880

Best Cheap Car Insurance in Minnesota

For those who would like to know about the cheapest auto insurance in the Gopher State, the sections below contain more detailed information, including each provider’s rank in the J.D. Power 2022 U.S. Auto Insurance Study^℠:

1. State Farm: Editor’s Choice

9.4/10

Overview

When it comes to car insurance in Minnesota, State Farm offers low average rates and extensive coverage options. In Minnesota, you can get extras such as rental car reimbursement, travel expense coverage, roadside assistance and rideshare insurance.

If you’re a good driver with a low average mileage, you can save money with the Drive Safe & Save^TM usage-based program. State Farm is also known for having a great student discount of 25%.

Keep reading: State Farm insurance review

Industry Standing

J.D. Power regional rating: 843/1,000
AM Best financial strength rating: A++
Better Business Bureau (BBB) rating: A+

2. USAA: Low Rates for Military

9.2/10

Overview

According to our rate estimates, USAA is the cheapest auto insurance provider for many drivers in Minnesota. However, you can only get coverage from USAA if you are a member of the military or a veteran, or if you have close family in the military. USAA’s usage-based program, SafePilot^®, is available in Minnesota. You can save up to 30% with the program depending on your driving habits. USAA offers extras including accident forgiveness, roadside assistance and car replacement assistance.

Keep reading: USAA insurance review
Compare: USAA vs. Geico

Industry Standing

J.D. Power regional rating: 879/1,000
AM Best financial strength rating: A++
BBB rating: A-

3. Geico: Affordable for Most Drivers

9.1/10

Overview

Geico is another good option for cheap car insurance in Minnesota. One thing that sets Geico apart from other providers is that it offers mechanical breakdown insurance, which is similar to an extended warranty for internal components of your vehicle. Geico also offers a range of extra coverage options, including roadside assistance and rental reimbursement.

Keep reading: Geico insurance review
Compare: State Farm vs. Geico

Industry Standing

J.D. Power regional rating: 847/1,000
AM Best financial strength rating: A++
BBB rating: A+

4. Liberty Mutual: Good Programs for Young Drivers

9/10

Overview

In our research, we found that Liberty Mutual can be a great option for teens and military drivers in Minnesota. The company offers a number of extra coverage options, including a lifetime repair guarantee. With this option, Liberty Mutual makes arrangements for repairs and guarantees the repairs for as long as you own your vehicle. You can also get options such as gap insurance, original parts replacement and rental reimbursement from the company.

Keep reading: Liberty Mutual insurance review

Industry Standing

J.D. Power regional rating: 840/1,000
AM Best financial strength rating: A
BBB rating: A+

5. American Family Insurance: Low Full-coverage Rates

8.5/10

Overview

American Family is another affordable option for car insurance in Minnesota. Extra options from American Family include gap insurance, rental reimbursement and emergency roadside assistance. The company also offers rideshare insurance for drivers in the gig economy to stay protected on the road.

Keep reading: American Family insurance review

Industry Standing

J.D. Power regional rating: 839/1,000
AM Best financial strength rating: A
BBB rating: A

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Average Car Insurance Cost: Minnesota

The average cost of car insurance in Minnesota is $1,632 per year (or $136 per month) for a full coverage policy. This is good news for drivers in the Land of 10,000 Lakes, as that’s cheaper than the national average rate of $1,730 per year.

Cost of Car Insurance in Minnesota by City

Auto insurance rates differ from state to state, but they also vary within states. Like in many other states, Minnesota residents in more urban ZIP codes typically pay higher rates for insurance than those in rural areas. The table below shows rate estimates for different Minnesota cities.

City in Minnesota	Estimated Monthly Cost	Estimated Annual Cost
Moorhead	$116	$1,397
Mankato	$117	$1,408
Rochester	$120	$1,444
St. Cloud	$125	$1,497
Duluth	$126	$1,514
Shakopee	$130	$1,554
Lakeville	$130	$1,559
Eden Prairie	$130	$1,562
Maple Grove	$130	$1,565
Minnetonka	$131	$1,567
Eagan	$131	$1,571
Apple Valley	$131	$1,575
Forest Lake	$132	$1,585
Plymouth	$132	$1,589
Bloomington	$133	$1,600
Woodbury	$133	$1,601
Cottage Grove	$134	$1,612
Burnsville	$134	$1,612
St. Louis Park	$135	$1,618
Blaine	$138	$1,651
Coon Rapids	$139	$1,666
Brooklyn Park	$143	$1,710
Maplewood	$152	$1,829
Minneapolis	$155	$1,855
St. Paul	$160	$1,915

Minnesota Car Insurance Cost by Age

Your age is one of the biggest factors in how much you pay for a car insurance policy. Younger drivers are more likely to get into car accidents, so they pay more. After age 30, car insurance prices typically level out until age 55, when prices increase again slightly.

Age	Estimated Monthly Cost	Estimated Annual Cost
16	$418	$5,011
17	$334	$4,003
18	$305	$3,663
19	$277	$3,325
21	$209	$2,508
25	$156	$1,877
30	$141	$1,696
40	$137	$1,644
50	$126	$1,508
55	$122	$1,468
65	$128	$1,532
75	$153	$1,831

Factors That Affect Car Insurance Rates in Minnesota

We’ve covered how age, locations, driving records and credit scores affect car insurance rates in Minnesota. Here are some other important factors in the cost of your premiums:

Marital status: Insurers tend to give married drivers lower rates than single drivers because married drivers are more likely to bundle policies and own several cars.
Gender listed on driver’s license: Female drivers get lower rates than same-age male drivers at certain ages, especially when they’re in their teens and early 20s.
Deductible amount: Opting for a higher deductible will lower a premium, but drivers will have to pay more out of pocket in the event of a car collision.
Policy discounts: Car owners can qualify for many discounts at insurance companies, and these can really help lower premiums.

Minnesota Car Insurance Requirements

Minnesota’s minimum coverage requirements are a bit more extensive than some other state minimums. Minnesota law requires drivers to carry personal injury protection (PIP), liability, uninsured motorist coverage and underinsured motorist coverage.

What Is the Minimum Car Insurance in Minnesota?

Here are the details according to the Minnesota Commerce Department:

Personal injury protection (PIP): $40,000
Bodily injury liability insurance: $30,000 per person and $60,000 per accident
Property damage liability: $10,000 per accident
Underinsured/uninsured motorist insurance: $25,000 per person and $50,000 per accident

Minnesota is a no-fault state. That means you pursue injury claims from your own company under your PIP coverage. This is also why the state requires PIP coverage for every driver. The no-fault system only applies to medical expenses from accidents, not property damage.

Be aware that Minnesota state requirements such as liability coverage won’t cover your vehicle if you are responsible for the accident. To get full coverage, consider adding collision coverage and comprehensive coverage to your auto insurance policy. Lenders usually require these types of insurance, as well.

Is It Illegal Not To Have Car Insurance in Minnesota?

Minnesota has strict laws about driving with no insurance. It is actually considered a misdemeanor criminal offense in the state.

Your first and second offense of driving without insurance in Minnesota can result in fines of up to $1,000, losing your license for up to 30 days, a requirement to carry SR-22 (high-risk) coverage and, in some cases, community service. If you have a third offense within 10 years, you can lose your license for a year, be fined up to $3,000 and spend as many as 90 days in jail.

How To Get Car Insurance in Minnesota

In Minnesota, you can find affordable auto insurance coverage from many providers, including State Farm, USAA and Geico. We recommend comparing multiple car insurance quotes as you shop for coverage since each provider will treat your situation differently.

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Minnesota Car Insurance: Conclusion

In this article, we reviewed the cheapest auto insurance companies, coverage and rates in the state of Minnesota. We also looked at the Gopher State’s average cost of car insurance and coverage requirements.

Car Insurance Minnesota: FAQ

Below are some frequently asked questions about cheap car insurance in Minnesota:

Full coverage car insurance in Minnesota costs about $136 per month on average, which is cheaper than the national average of $144 per month. Minimum coverage insurance costs about $50 per month in Minnesota.

Full coverage car insurance in Minnesota averages out to $1,632 per year, or $136 per month. This is roughly 6% less expensive than the national average for car insurance, which is $1,730 per year, or $144 per month.

USAA is the cheapest car insurance in Minnesota with average rates of $1,060 for full coverage insurance and $345 for minimum coverage insurance. Auto-Owners, State Farm and Geico can all be affordable options, as well.

Typically, car insurance follows the car in Minnesota. Collision, comprehensive, uninsured motorist protection and property damage liability coverage all follow the car, and not the driver, in the state.

Minnesota gives drivers a 2-30 day grace period to buy insurance for their car after purchasing it. After this grace period, drivers are subject to the Minnesota Financial Responsibility Law, which requires them to carry minimum coverage.

Our Methodology

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

Our credentials: