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In 2016, the state of Minnesota had a total of 3,377,910 licensed drivers, according to the Federal Highway Administration. Minnesota laws require all of those drivers to carry car insurance that meets minimum requirements. If you live in Minnesota, this guide will help find the cheapest insurance companies in your state. We've also covered how much auto insurance you need to buy to comply with the law, whether you should consider more insurance, and the factors that affect car insurance premiums.

You’ll see as you read that insurance companies’ formulas have a lot of variables that will affect the rate you personally pay for insurance. The laws in your state also play a role. In other words, the national average rate is good to know, but you may pay more or less depending on your specific circumstances.

The Quadrant Information Services study provides other interesting information about the factors that affect the cost of car insurance in Minnesota. These include the city or town in which the vehicle is registered, the age, gender, and marital status of the driver, and other factors such as driving record and credit score of the policyholder.

Cheapest Car Insurance Companies in Minnesota

The rates shown here are based on a study performed by Quadrant Information Services on behalf of U.S. News. The study examined rates from the largest car insurance companies in the United States, using certain driver profiles. Your rates will differ. See more about the rates in this study.

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How We Found the Cheapest Car Insurance Companies

At U.S. News, we’re all about helping people make life’s important decisions. Our college rankings, launched in 1983, set the standard in educational rankings. Our rankings in other fields, like healthcare, government, and the automotive sphere, help people and thought leaders make choices that make lives better. Now we’re continuing to empower you with the information you need to make the right choices for your life with our Cheapest Car Insurance Rankings. 

Our Study Rates

For this study, U.S. News worked with Quadrant Information Services to analyze a report of insurance rates in all 50 states from the nine largest national car insurance companies, though not every company operates in every state. Quadrant obtained publicly available rate data that car insurers file with state regulators. Our study rates are based on profiles for both male and female drivers aged 25, 35, and 60. Vehicles used include the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150, with annual mileage ranging from 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation, and one DUI were also used in the calculations of certain driver archetypes. 

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To get the study rates shown here, we computed the mean rate for male and female drivers aged 25, 35, and 60 who drive 15,000 miles per year and have medium coverage, good credit, and a clean driving record. The rates shown here are for comparative purposes only and should not be considered “average” rates available by individual insurers. Because car insurance rates are based on individual factors, your car insurance rates will differ from the rates shown here. 

How Much Does Car Insurance Cost in Minnesota?

See the Cheapest Car Insurance Companies

With the Quadrant Information Services data, we can help you figure out a general idea of how much you can expect to pay for car insurance in Minnesota. This information shows the differences in average annual rates in the state among the seven largest auto insurance companies, taking into consideration factors such as demographic data, annual miles driven, driving record, and location.

According to the Quadrant Information Services study, the average representative rate for auto insurance in Minnesota from the seven largest auto insurance companies is $1,225. Study data shows that Allstate has the highest average representative rates of the group, with an average annual rate of $1,535 for customer profiles in Minnesota. State Farm comes in with the lowest average representative rates in the state, at $1,097 – aside from USAA, which is only available to those with military affiliations USAA’s average representative rate for driver profiles in Minnesota comes out to about $985.

Minnesota Car Insurance Rates by Age

Company

25-year-old male

25-year-old female

35-year-old male

35-year-old female

60-year-old male

60-year-old female

Allstate

$1,816

$1,751

$1,435

$1,435

$1,386

$1,386

American Family

$1,308

$1,275

$1,080

$1,075

$981

$982

Farmers

$1,806

$1,808

$1,295

$1,291

$1,300

$1,199

Geico

$1,330

$1,228

$1,122

$1,055

$992

$992

Nationwide

$1,540

$1,466

$1,209

$1,211

$1,130

$1,046

State Farm

$1,329

$1,189

$1,068

$1,068

$963

$963

USAA

$1,293

$1,237

$865

$885

$807

$818

First, we’ll look at driver profiles for 25-year-old women and men. The average representative rate across all seven companies for the male profile in this age group is $1,490, and for the female profile, it’s $1,420. 

The male driver in this age group has the highest representative rate with Allstate, costing average driver profiles about 22% above the state average. For the women driver profile in this category, Farmers is the most expensive, at 27% above the state average. State Farm has the most affordable average rates for the women in this category, about 16% below the state average. For the male driver profiles, American Family offers the most affordable averages, charging about 12% below the state average.

Next up, we’ll look at driver profiles for 35-year-old women and men. The good news about reaching this age is that rates generally go down a little. The average representative rates do show that this group is likely to pay lower rates than the 25-year-old driver profiles. 

The average representative rate for the 35-year-old male driver profile in Minnesota among the auto insurance companies in the study is $1,155, and for the 35-year-old female driver profile, the average representative rate is $1,145. 

The men and women driver profiles in this age group will pay the highest representative rates with Allstate, at an average of $1,435 for both genders. For the women in this category, Geico offers the cheapest average rates, costing about 8% below the state average. For the men in this demographic, it’s State Farm, charging average driver profiles a rate about 7% below the state average.

Our driver profiles for 60-year-old women and men are the last of the three age groups in the study, and in general, they can expect to pay the lowest auto insurance rates. Statewide average representative rates in this group drop to $1,080 for the male profile and $1,055 for the female profile. As with the 35-year-old group, study data shows that some of the insurers show the same average representative rates for the male and female profiles. The most expensive average representative rate for this group is from Allstate, at 31% above the state average for women driver profiles, and 28% above it for the men. The most affordable rates are from USAA and State Farm, although Geico and American Family also have average rates below $1,000 for this demographic.

To determine the average rates based on gender and age, we created driver profiles for males and females in each of the following ages: 25 years, 35 years, and 60 years. The profiles also have a clean driving record, insurance coverage for 12,000 miles per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Minnesota Car Insurance Rates by Mileage

Company

6,000 miles annually

12,000 miles annually

Allstate

$1,535

$1,535

American Family

$1,092

$1,117

Farmers

$1,450

$1,450

Geico

$1,042

$1,120

Nationwide

$1,267

$1,267

State Farm

$991

$1,097

USAA

$910

$984

First, it’s worth mentioning that Allstate, Farmers, and Nationwide have the same statewide average representative rate for both groups, while the other four have only slightly higher representative rates (a difference of less than $100) for driving more miles. The average representative rate for the lower mileage driver profile is $1,185 and for the higher mileage driver profile, it’s $1,225. In other words, if you can shorten your daily commute, it can be a decent way to save money on fuel and maintenance, but you won't necessarily see great savings from lower insurance rates.

According to study data, Allstate is the most expensive, with an average representative rate of 25% above the state average for the high-mile driver, and State Farm is the cheapest, with an average representative rate of 10% lower than the state average for the 12,000-mile commuter.

We created two driver profiles to compare how annual mileage can change car insurance rates: one with low mileage (6,000 miles per year) and one with high mileage (12,000 miles per year). The profiles covered males and females in the 25-, 35-, and 60-year-old age groups with a medium level of insurance coverage, a good credit score, and a clean driving record. The vehicles used in our study were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Minnesota Car Insurance Rates by Coverage Type

Company

Low

Medium

High

Allstate

$1,508

$1,535

$1,577

American Family

$1,097

$1,117

$1,126

Farmers

$1,395

$1,450

$1,490

Geico

$1,082

$1,120

$1,176

Nationwide

$1,194

$1,267

$1,321

State Farm

$1,048

$1,097

$1,136

USAA

$948

$984

$1,020

Across almost all of the insurance companies in the study, average representative rates are the lowest with low coverage, increase with medium coverage, and increase more for high coverage. Among these companies, the average representative rate for low coverage is $1,180, medium coverage is $1,225, and high coverage is $1,265. Study data shows that Allstate has the most expensive average representative rates and State Farm has the cheapest average representative rates for all three driver profiles. For the high coverage profiles, State Farm costs 10% below the state average, and Allstate 25% above it. 

The takeaway here, demonstrated by these averages, is that a better insurance policy might not cost as much as you might assume, and may be worth it in the event of an accident. For less than $80 per year on average in additional costs, you could step up from low coverage to high coverage. That money would be far less than the costs you'd pay out of pocket if you cause an accident and your low coverage policy doesn't cover all the related medical bills or repair costs.

We created identical profiles in our study to represent drivers, then found out how rates changed with the three levels of coverage. The profiles were assigned a clean driving record, a good credit score, and 12,000 miles of annual driving. We used both males and females aged 25, 35, and 60. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 were the vehicles used in our analysis. 

Minnesota Car Insurance Rates by Credit Score

Company

Good

Fair

Poor

Allstate

$1,535

$1,682

$2,850

American Family

$1,117

$1,348

$2,021

Farmers

$1,450

$1,593

$2,716

Geico

$1,120

$1,179

$1,446

Nationwide

$1,267

$1,501

$1,849

State Farm

$1,097

$1,389

$2,239

USAA

$984

$1,131

$2,259

Insurance companies consider credit history in calculating rates because good credit history generally indicates a responsible person, whereas a customer with fair or poor credit history is statistically a higher risk. The Quadrant Information Services data shows how much these driver profiles in Minnesota are likely to pay with each of the major insurance companies in the study. The driver profile with poor credit history has the highest average representative rate, at $2,200. According to study data, this driver profile faces an average representative rate of about 30% above the state average with Allstate on the high side, and an average representative rate of 34% below the state average with Geico on the low side. 

With fair credit history, the statewide average representative rate comes in at $1,405. Study data for this driver profile shows the most expensive company in this group is Allstate, with an average representative rate of 20% above the state average, and Geico is the cheapest aside from USAA, with an average representative rate 16% below the state average.

The average representative rate for the driver profile with good credit is $1,225. Study data for these driver profiles shows Allstate is again the most expensive company, at an average representative rate of about 25% above the state average, and State Farm is the cheapest aside from USAA, with an average representative rate of 10% below the state average.

Based on profiles of male and female drivers aged 25, 35, and 60, our study verified that credit scores affect car insurance rates. We created a profile for each level of credit score (good, fair, and poor) and assigned the profiles a clean driving record, a good credit score, a medium level of insurance coverage, and 12,000 miles of annual driving. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 were the vehicles used in our analysis.

Minnesota Car Insurance Rates by Driving Record

Company

Clean record

With 1 speeding violation

With 1 accident

With 1 DUI

Allstate

$1,535

$2,170

$2,365

$2,608

American Family

$1,117

$1,161

$1,161

$1,161

Farmers

$1,450

$1,684

$1,958

$2,003

Geico

$1,120

$1,265

$1,944

$3,606

Nationwide

$1,267

$1,747

$2,130

$2,629

State Farm

$1,097

$1,187

$1,277

$1,187

USAA

$984

$1,169

$1,362

$1,840

This is one of the few factors in the Quadrant Information Services study that individual consumers have any control over, and as you’ll see, it makes a big difference. Maintaining a clean driving record is one of the best ways to save money on car insurance.

First, let’s look at the driver profile with a clean record. Study data shows the average representative rate for this driver profile is $1,225, with Allstate charging the highest average representative rate of $1,535, and State Farm charging the lowest representative rate, at $1,100. Average driver profiles in this category pay about 25% above the state average with Allstate, and about 10% below with State Farm.

In general, representative rates get progressively higher from a clean record as the severity of the offense increases, though there are a couple of exceptions. That is to say, representative rates go up from a single speeding violation to a single accident, and then higher still with a single DUI.

So, let’s look at the driver profile with a single speeding violation. The statewide average representative rate for this group is $1,485. The most expensive company is Allstate, with an average representative rate of $2,170, and the least expensive is American Family, at a representative rate of $1,160. Average driver profiles in this category with Allstate pay about 46% above the state average, and those with American Family 22% below it.

The driver profile with one accident pays an average representative rate of $1,740, with the highest representative rates coming from Allstate, about 36% above the state average. The lowest representative rates are from American Family, at about 33% below the state average.

Finally, we’ll look at the driver profile in Minnesota with a single DUI incident, with a statewide average representative rate of $2,150. Geico has the highest representative prices for this driver profile, costing on average about 68% above the state average. On the affordable side, American Family’s rates don’t change for the driver profiles with one speeding violation, accident, or DUI, making it the most affordable for the latter, by about 46% below the state average.

To find out just how much of an effect a person's driving record has on insurance rates, we made driving profiles with a clean record, with one speeding violation, with one accident, and with one instance of driving under the influence (DUI). These driving record representative profiles were based on 25-, 35-, and 60-year-old males and females who drove 12,000 miles per year and had a medium level of insurance coverage and a good credit score. Vehicles used in the analysis were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Minnesota Car Insurance Rates by City

City

Average Rate

Bloomington

$1,318

Brooklyn Park

$1,451

Duluth

$1,219

Maple Grove

$1,251

Minneapolis

$1,559

Plymouth

$1,249

Rochester

$1,153

St. Cloud

$1,242

St. Paul

$1,562

Woodbury

$1,281

Insurance rates can be affected by the city or town in which a vehicle is registered, based on crime rates and other factors. Quadrant Information Services looked at 10 cities and towns in Minnesota to find average representative insurance rates for each.

The cheapest car insurance rates in Minnesota are found in Rochester and Duluth, 6% and 0.5% below the state average respectively, while the priciest are located in Minneapolis and St. Paul, which cost average driver profiles 27% and 28% above the state average, respectively.

Within each state, insurance rates can vary dramatically from city to city. To get a sense of how these differences affect car insurance premiums, we looked at average representative rates across 10 of Iowa’s top cities. In our study, we used male and female driver profiles aged 25, 35, and 60 who put 12,000 miles on the odometer each year. Our profiles have medium insurance coverage, a clean driving record, and good credit. We included three vehicles in our study: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

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Minnesota Auto Insurance Minimum Coverage Requirements

In Minnesota, motorists are required to carry liability insurance and personal injury protection coverage. Minnesotan drivers must also have uninsured motorist coverage. Minnesota residents are not required to carry collision or comprehensive coverage. 

These are the minimum insurance requirements in Minnesota:

  • Bodily injury liability coverage: $30,000 per person, $60,000 per accident 
  • Property damage liability coverage: $10,000 per accident
  • Personal injury protection coverage: $40,000 per person
  • Uninsured motorist coverage: $25,000 per person, $50,000 per accident

Drivers who get behind the wheel without insurance in Minnesota can be fined $200 or more, or can be sentenced to community service in lieu of fines. They could also receive up to 90 days in jail, plus their license and registration can be suspended until proof of insurance is provided. Subsequent offenses can carry higher fines, mandatory jail time, or driver’s license revocation.

Cheapest Car Insurance in Minnesota

Note: Due to USAA's limited membership, we excluded them from this segment evaluation.

Category

Cheapest Company

Drivers with a Military Affiliation

USAA

Male Young Adult Drivers

State Farm

Female Young Adult Drivers

American Family

Male Married Adult Drivers

State Farm

Female Married Adult Drivers

GEICO

Senior Drivers

State Farm

Drivers with Good Credit

State Farm

Drivers with Poor Credit

GEICO

Drivers with a Clean Record

State Farm

Drivers with One Speeding Violation

American Family

Drivers with One Accident

American Family

Drivers with One DUI

American Family

Low-mileage Drivers

State Farm

High-mileage Drivers

State Farm

Drivers with Low Coverage

State Farm

Drivers with High Coverage

American Family

Drivers with Used Cars

State Farm

Drivers with New Cars

American Family

To get the cheapest car insurance coverage in Minnesota, it helps to be in low-risk groups in terms of age, credit history, and driving record. Buying a low coverage policy may help up front, but may not be worth it if you are in an accident and find you don’t have sufficient coverage. The best thing you can do to find cheap car insurance in Minnesota is shop around.

American Family and State Farm are some of the most affordable choices for most driver profiles – although those with poor credit or who identify as married women drivers can find the cheapest rates with Geico. 

To find which car insurance company offers the lowest rates, our study used representative driver profiles with good credit, medium insurance coverage, and a clean driving record. Our profiles included males and females aged 25, 35, and 60 who drove 12,000 miles per year. The vehicles used in our study were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Why Car Insurance Rates Vary in Minnesota

As we’ve seen from the Quadrant Information Services data, there are a lot of variables that factor into car insurance rates. In every state, car insurance companies charge the highest rates to the highest-risk drivers, those who are typically young and inexperienced, those who have other indicators such as poor credit or driving offenses, and those who live in areas with higher rates of crime. According to Esurance, insurance companies in Minnesota are also allowed to factor in the type and age of car you drive, your auto insurance history, and whether you use your car for business.

How to Get the Cheapest Car Insurance in Minnesota

Even though the cost of car insurance and industry regulations vary from state to state, there are steps you can take to save money on car insurance no matter where you live. First, you can focus on the variables that you can control, like maintaining a clean driving record, since the data clearly shows that drivers with bad records pay much more for insurance. 

Then, you should look at the discounts offered by your current insurance company and by competitors. Shopping around is the fastest way to cut insurance costs, and it’s important to be familiar with common discounts. For example, you should try to get a multi-policy discount, also known as a bundling discount, which most insurance companies offer to customers who have more than one insurance policy with the same company. You can bundle your car insurance policy with homeowners insurance or renters insurance, for example. A similar discount is the multi-vehicle discount for additional vehicles in the household on the same auto insurance policy.

Henryk Sadura/Getty Images

Common car insurance discounts include good student discounts, which often require the student to maintain a minimum grade average, discounts for a good driving record or for completing approved driver education programs, and affinity discounts (generally available through an employer or if you are a member of a club that has negotiated a group rate with an insurance company). Some professions, such as teachers, active members of the military, and veterans, are entitled to discounts from most major insurance companies. 

If you accumulate low mileage, you may be entitled to a discount. New cars or cars with certain features, such as specific safety or anti-theft devices, may net additional discounts. See if your company offers discounts for paperless billing, online billing, automatic payment, or payment up front. Finally, your company may be among those offering a tracking program, which uses a car-based telematics device or a smartphone app to track your driving habits. If you’re willing to hand over this kind of private information, it may result in a discount.

Important Laws Around Auto Insurance in Minnesota

In Minnesota, driving without the state’s minimum insurance is a misdemeanor. The first and second offenses carry fines between $200 and $1,000, a suspension up to 30 days for the driver’s license and the vehicle’s registration and plates, and possible community service. The third offense carries fees between $200 and $3,000, a driver’s license and vehicle registration and plate revocation up to one year, possible community service, and jail time up to 90 days. In all cases, reinstatement of driving privileges requires a $30 fee plus the driver must obtain an SR-22 certificate, which verifies that the driver has at least the minimum required insurance.

Minnesota Driving Laws and Punishments

It’s the driver’s responsibility to know the laws and penalties for the state they live in and when they cross state lines. Keep in mind that if you violate any of these laws in Minnesota, you may be subject to higher auto insurance premiums, even if you don’t live in Minnesota.

Drivers in Minnesota have been banned from texting, emailing, and browsing the internet while driving for several years, and in March of 2019, the state House passed a bill that adds hand-held phone use to the list of offenses. While adult drivers in Minnesota are allowed to use hands-free devices and to talk on a cell phone, school bus drivers and drivers under the age of 18 are completely prohibited from using a cell phone, even hands-free, except in an emergency or to dial 911. Violating any of these rules can result in a charge for reckless or careless driving. 

jimkruger/Getty Images

First, let’s look at violations for cell phone use. For drivers under 18, the violation is a petty misdemeanor with a base fine of $50 but a total penalty of about $135. Multiple violations can prevent the driver from graduating to a full license on time. School bus drivers face a misdemeanor charge with a punishment of up to 90 days in jail or fines not more than $1,000, as well as a loss of school bus driving privileges. Furthermore, drivers who are permitted to use cell phones while driving can still be charged with a misdemeanor if they are driving recklessly.

Minnesota’s legal blood alcohol concentration (BAC) level is .08%, though motorists can be arrested at lower levels. Minnesota’s system for DUI offenses is complicated, but in general, a first-time DUI offender faces up to 90 days of jail time, a $1,000 fine, and can expect to lose his or her driver’s license from 30 days to a year. Penalties for additional DUI offenses include up to seven years in prison, up to a $14,000 fine, and can lose her or her license for as long as 10 years.

Minnesota Car Insurance FAQs

Is Car Insurance Required in Minnesota?

Yes, Minnesota requires liability insurance and uninsured motorist coverage.

Which Cars Are Required To Be Insured in Minnesota?

All vehicles registered in Minnesota must be insured according to Minnesota’s minimum requirements.

When Should I Get Car Insurance in Minnesota?

You should get car insurance before you register your vehicle, as proof of insurance is required during the registration process in Minnesota.

What Happens if My Car Is Not Properly Insured in Minnesota?

In Minnesota, the first and second times you are caught driving without insurance, you are subject to fines between $200 and $1,000. Your driver's license and the vehicle's registration and plates could be suspended for up to 30 days, and you could be required to complete community service. On the third offense you are on the hook for fees ranging between $200 and $3,000, a driver’s license and vehicle registration and plate revocation up to one year, possible community service, and jail time up to 90 days. 

Is Minnesota a No-Fault State?

Yes, Minnesota is a no-fault state as it pertains specifically to injuries and medical costs incurred as the result of an accident, as well as related costs such as loss of wages. 

Do I Need Uninsured Motorist Coverage in Minnesota?

Yes, Minnesota requires uninsured motorist coverage. The minimum is $25,000 per person/$50,000 per accident uninsured motorist bodily injury coverage.

Is Liability Insurance Required in Minnesota?

Yes, liability insurance is required in Minnesota. Drivers are required to carry $30,000 in bodily injury liability coverage per person per accident, $60,000 bodily injury coverage for all persons per accident, and $10,000 in property damage coverage.

Does Minnesota Accept Digital Insurance Cards?

Yes, Minnesota accepts digital insurance cards, which means when you need to show proof of auto insurance, you can use a smartphone app provided by your insurance company.

The Best Car Insurance Companies in 2020

Our Car Insurance Ranking

  1.     USAA
  2.     Geico
  3.     Allstate
  4.     State Farm
  5.     Farmers
  6.     Progressive
  7.     American Family
  8.     Nationwide
  9.     Travelers

The Cheapest Car Insurance Companies in 2020

Average Annual Rates:

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