Best Car Insurance: Minnesota
Are you a Minnesota driver looking for affordable coverage? Here’s how to find the best and cheapest car insurance in the Land of 10,000 Lakes.
Find out if you’re paying too much for auto insurance here.
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Key Points:
- USAA, Geico, and Auto-Owners are our top picks for car insurance in Minnesota.
- The average cost of car insurance in Minnesota is slightly above the national average.
- USAA and Travelers are among the cheapest full-coverage car insurance providers for Minnesota drivers.
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Don’t get caught driving without car insurance in Minnesota. In this article, our research team explains state minimum requirements and recommends some of the top insurance providers in the state.
Auto insurance rates in Minnesota are generally higher than the national average, so you may try to find the cheapest coverage you can. But you also shouldn’t sacrifice quality, which is why we only recommend providers with strong customer service reputations. We’ve reviewed the best car insurance companies in the United States, and we used the same criteria to determine the top providers in the state of Minnesota.
The best way to find the most affordable car insurance rates is to compare prices from multiple providers. You can do so by entering your zip code into the quote comparison tool above.
Cheapest Car Insurance Companies In Minnesota
According to our cost estimates, USAA, Travelers, and Auto Owners are among the cheapest full-coverage providers in Minnesota. The estimates below are based on a single 30-year-old male driver with a clean driving record and good credit driving a 2020 Honda CR-V.
| Car Insurance Provider | Average Annual Cost Estimate |
|---|---|
| USAA | $1,631 |
| Travelers | $1,726 |
| Auto-Owners | $1,798 |
| State Farm | $1,805 |
| Geico | $1,921 |
Cost Of Car Insurance In Minnesota
The cost of your car insurance in Minnesota will depend on your own driver profile. Factors such as age, gender, marital status, and driving record are considered when insurers set your rates.
Rates also tend to vary from city to city and state to state.
Using the same 30-year-old male driver with a 2020 Honda CR-V mentioned earlier, the average cost of full-coverage car insurance in Minnesota is $2,115 per year or $176 per month. The average cost of minimum liability car insurance in the state is $856 per year or $71 per month.
The national average cost of full-coverage car insurance for this driver profile is $1,968 per year or $164 per month, while minimum coverage costs $798 per year or $67 per month on average. This means Minnesota car insurance costs are slightly above the national average.
Annual Minnesota Car Insurance Estimates By Age
A 20-year-old driver in Minnesota can pay twice as much for car insurance as a 40-year-old. As you can see in the table below, average rates are especially high for the youngest teen drivers in the state.
| Age | Average Annual Cost Estimate
for Full Coverage |
|---|---|
| 16 | $7,233 |
| 20 | $4,606 |
| 30 | $2,115 |
| 40 | $2,044 |
| 50 | $1,850 |
*All cost estimates are for a 2020 Honda CR-V.
Annual Minnesota Car Insurance Estimates For Drivers With Bad Credit Scores
Minnesota drivers with poor credit can pay more than twice as much for car insurance as drivers with good credit.
| Credit Rating | Average Annual Cost Estimate
for Full Coverage |
|---|---|
| Good | $2,115 |
| Poor | $4,745 |
*All cost estimates are for a 2020 Honda CR-V.
Annual Minnesota Car Insurance Estimates For Bad Drivers
Speeding tickets, car accidents, and DUIs can dramatically increase your car insurance costs in Minnesota.
| Driving Record | Average Annual Cost Estimate
for Full Coverage |
|---|---|
| Clean | $2,115 |
| Speeding Ticket | $2,794 |
| At-Fault Accident | $3,235 |
| DUI | $4,950 |
*All cost estimates are for a 2020 Honda CR-V.
Top 5 Car Insurance Companies In Minnesota
The most important factors we took into consideration when assessing Minnesota auto insurance providers were cost, coverage, and customer service. Every provider recommended below scored highly in each of these areas.
| Best Car Insurance in Minnesota | Our
Overall Rating | Average Annual Cost
for Full Coverage |
|---|---|---|
| 1. USAA Auto Insurance | 4.5 | $1,631 |
| 2. Geico Auto Insurance | 4.5 | $1,921 |
| 3. Auto-Owners Insurance | 4.4 | $1,798 |
| 4. Travelers Car Insurance | 4.6 | $1,726 |
| 5. State Farm Car Insurance | 4.7 | $1,805 |
*Not all companies were included in our rate estimates for each state. You may also notice that some car insurance companies are listed above those with higher star ratings. This is because our star ratings take into account nationwide factors, while our ranking looks specifically at what insurance providers are best for car insurance in Minnesota.
#1 USAA: Best For Military
Based on our research, USAA offers the best car insurance in Minnesota for those who are eligible to purchase a policy. USAA policies are only available to military members and those with a parent or spouse that is a USAA member. If this doesn’t apply to you, you’ll need to consider our other recommended providers instead.
If you’re eligible for a USAA membership, you should certainly consider joining. USAA is one of the most well-regarded insurers in Minnesota. In the 2023 J.D. Power U.S. Auto Insurance Study℠, USAA scored a total of 890 out of a possible 1,000 points in the Central region of the U.S. This made it the highest-scoring provider in the region, though it wasn’t eligible for formal ranking because of its limited availability.
USAA doesn’t just have exceptional customer service – it also boasts excellent coverage options. In addition to the standard types of auto insurance, USAA customers can also purchase car replacement assistance (CRA) and more.
The company’s policies are also inexpensive. Customers can save by taking advantage of many potential discounts, such as:
- Defensive driving course discount
- Driver training course discount
- Military installation discount
- Annual mileage discount
- Premier driver discount
- Good student discount
- New vehicle discount
- Family discount
It’s safe to say that if you’re eligible for a policy, USAA is among the best options for car insurance in Minnesota.
Learn more about the company by reading our full USAA auto insurance review.
#2 Geico: Best for Basic Coverage
Geico is one of the top auto insurance providers in the U.S. We’ve named it the Best for Basic Coverage because it has a strong reputation, consistently receives high customer satisfaction marks, and often offers the lowest rates for car insurance policies.
Geico’s reputation for good customer service holds up in Minnesota. In the 2023 J.D. Power U.S. Auto Insurance Study, Geico scored a total of 819 out of 1,000 possible points, placing it tied for fifth in the Central region.
Drivers receive not only excellent service with Geico, but may also find the lowest premium rates. The many discounts offered by Geico include:
- Good student discount
- Good driver discount
- Defensive driver discount
- Safety feature discounts
- Anti-theft device discount
- Multiple policy discounts
- Military discount
- Federal employee discount
Geico is the third largest car insurance company in the U.S. and a great choice for Minnesota car insurance thanks to its affordability and smooth claims experience.
#3 Auto-Owners Insurance: Best Local Service
Founded in 1916 in Lansing, Michigan, Auto-Owners Insurance serves 26 states in the north and central U.S. In these states, Auto-Owners has an excellent customer service reputation. Minnesota drivers rate the company highly, and it scored 829 out of 1,000 possible points in the 2023 J.D. Power U.S. Auto Insurance Study for the Central region. This put it in fourth place among the providers ranked.
Auto-Owners Insurance operates exclusively through local agents. While this means you’ll need to contact an agent to get a quote or to file claims, it also means you’ll have access to someone who specializes in Minnesota auto insurance coverage. Knowledgeable Auto-Owners agents can help you find the best policy for your needs and budget.
In addition to standard auto coverage, Auto-Owners Insurance offers roadside assistance, rental and travel expense coverage, GAP insurance, and more. Many Minnesota drivers find that Auto-Owners offers cheap car insurance – the lowest car insurance rates in the area – well below the state average.
Auto-Owners Insurance customers can save by taking advantage of any of the following discounts the company offers:
- Favorable loss history discount
- Good student discount
- Multiple policy discount
- Payment history discount
- Pay-in-full discount
- Student away at school discount
- Teen driver monitoring
- Advance quote discount
- Multiple car discount
- Safety features discount
Auto-Owners Insurance has an A++ financial rating from AM Best, indicating a superior ability to pay customer claims.
#4 Travelers: Best Coverage Options
Travelers has been around since 1864. The company boasts an A++ financial strength rating from AM Best and an A rating from the BBB. Travelers stands out in our rankings for its many discount options and add-on coverages.
In addition to all the standard auto insurance coverage types, Travelers offers the following additional protection options:
- Loan/lease gap coverage: This covers the difference between what your car is worth and what you owe on it in the event of a total loss.
- New car replacement: If totaled within the first five years of ownership, this coverage replaces your vehicle with the same make and model.
- Named non-owner: This protection is for drivers who don’t own the insured vehicle.
- Umbrella insurance: This provides additional liability coverage to help cover attorney fees and other expenses associated with lawsuits.
If you want to learn more about Travelers, read our comprehensive Travelers auto insurance review.
#5 State Farm: Best For Students
State Farm is a national provider with strong financials and a reputation for handling customer claims quickly. It makes our list of top insurers in Minnesota because of its positive reputation and high customer service scores. It ranked third overall in the 2023 J.D. Power U.S. Auto Insurance Study for the Central region, scoring 833 out of 1,000 points.
State Farm is a good option for low-cost auto insurance in Minnesota, and drivers can save even more by taking advantage of the following discounts:
- Safe driving discount
- Safe vehicle discount
- Loyalty discounts
We recommend State Farm for students because of its Drive Safe & SaveTM and Steer Clear® programs. The Drive Safe & Save mobile app monitors things like acceleration, braking, speed, and more and can give discounts to safe drivers with low annual mileage. The Steer Clear program provides specialized training that drivers under 25 can participate in to save money on auto insurance premiums.
You can get free car insurance quotes from top providers in Minnesota by entering your zip code below.
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Minnesota Car Insurance Requirements
Requirements for auto insurance in Minnesota are a little higher than in other states. While many states only require liability auto insurance, Minnesota law also requires drivers to carry personal injury protection as well as uninsured/underinsured motorist coverage. The chart below details the minimum coverage limits required by Minnesota state law.
| Coverage Type | Minimum
Coverage Amount |
|---|---|
| Bodily Injury Liability (Per Person) | $30,000 |
| Bodily Injury Liability (Per Accident) | $60,000 |
| Property Damage Liability (Per Accident) | $10,000 |
| Personal Injury Protection | $40,000 |
| Uninsured/Underinsured Motorist Coverage (Per Person) | $25,000 |
| Uninsured/Underinsured Motorist Coverage (Per Accident) | $50,000 |
Minnesota is a no-fault state. This means that drivers are covered by their own insurance after an accident, regardless of who was at fault. In no-fault states, after a collision, each driver is responsible for covering their own medical expenses and vehicle repair costs. However, drivers who are not at-fault can still sue the at-fault driver for damages.
Driving without insurance or failing to provide insurance information in Minnesota carries legal penalties, which are outlined in the chart below.
| Driving Without Insurance | Penalties |
|---|---|
| First and Second Offense | • Minimum fine of $200
• Up to 90 days in jail • Driver’s license suspension up to one year |
| Third Offense | • Fine of up to $3,000
• Up to one year in jail • Driver’s license and registration suspension up to one year |
Car Insurance In Minnesota: Our Take
We recommend USAA and Geico as the top two options for car insurance in Minnesota. Though there are other good providers in the state, USAA and Geico offer low average premium rates and have good reputations among customers.
If you’re trying to find the cheapest car insurance in Minnesota, each of the companies recommended above would be a good place to start your search. You can also compare free, personalized auto insurance quotes from our top providers quickly and easily by entering your zip code into the tool below, and keep reading for more ways to save.
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FAQ: Car Insurance In Minnesota
Below are some frequently asked questions about car insurance in Minnesota:
Who has the cheapest car insurance in Minnesota?
Based on our research, USAA, Geico, and Auto-Owners Insurance offer some of the lowest rates in Minnesota. Rates vary for every driver, and the best way to find cheap insurance is to reach out for quotes from multiple companies.
What car insurance is required in Minnesota?
Minnesota drivers are required to maintain 30/60/10 ($30,000 bodily injury per person, $60,000 bodily injury per accident, and $10,000 property damage per accident) in liability insurance, $40,000 in personal injury protection, and 25/50 ($25,000 per person and $50,000 per accident) in uninsured/underinsured motorist coverage.
How much is car insurance in Minnesota?
A 30-year-old male driver with good credit and a clean driving record who drives a 2020 Honda CR-V will pay $2,115 per year for full-coverage car insurance and $856 per year for minimum liability auto coverage. Both of these figures are slightly above the national averages.
How We Rate Auto Insurers
Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:
- Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
- Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
- Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
- Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
- Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
- Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.
