Best Car Insurance in Minnesota (updated 2023)

WRITTEN BY: Julia Matseikovich


Minnesota car insurance, on average, costs $537 for minimum coverage and $1,643 yearly for full coverage. It’s below the national average, but many factors come into play when determining your car insurance in Minnesota. We’re here to walk you through the process.

Best Minnesota Car Insurance Companies

There are great choices available for car insurance in Minnesota. Whether you’re looking for great rates or excellent car insurance, we have some great options. 

Cheapest Minnesota Car Insurance Company

​​State Farm has the most affordable full-coverage car insurance in Minnesota. Their rates are 38% cheaper than the state average. Yearly, you will likely pay $1,105. The average coverage in Minnesota is $1,779 annually, so State Farm is significantly cheaper.

Company With the Best Customer Service

On the top of the customer service score is USAA. They scored 897 out of 1,000 in J.D. Powers’ 2021 U.S. Auto Insurance Study. It’s only available for military members and their families. Shelter Insurance came in second with a score of 856 out of 1,000.

Company With the Best Premium-Reducing Programs

Premium-reducing coverage comes from having minimum coverage available to all insurers. Auto-Owners is another company with excellent rates for minimum coverage that doesn’t require huge premiums. On average, it costs $493 yearly for the minimum amount of liability.

Company With the Best Discounts

American Family and GEICO offer cheap car insurance in Minnesota that also provides many discounts. There are many discounts, such as sign online, safe driver, multi-car, and pay-in-full. You also have the option to bundle your car, health, or home insurance to receive even more discounts. American Family offers a monthly rate of $241 or $1,538 yearly.

Local and Regional Insurance Carriers

North Star Mutual Insurance

Named for the state motto, North Star Mutual features coverages for personal and commercial cars and farm vehicles. Their coverage protects you against claims, lawsuits, and expensive bills. 

Coverages include bodily injury liability, property damage liability, medical payments, and other protections. North Star Mutual Insurance lets customers cut costs and save on car insurance with discounts for defensive driving courses, companion policies, and anti-theft equipment. 

Farmers Insurance

Farmers Insurance offers Minnesota drivers everything they need for state minimum coverage. For further protection, Farmers Insurance has coverage options tailored to your needs, whether you drive in St. Paul, Minneapolis, or through the rural areas of Minnesota. 

Minneapolis weather may be intense and hazardous, but Farmers Insurance customers know they’re well-protected by the company’s policies. Discounts possible include savings for multiple cars, multiple policies, and youth drivers.

Auto-Owners Insurance

Auto-Owners Insurance provides personalized service for Minnesota vehicle owners. The company features over 100 years in the industry and provides drivers with the best policies needed for Minnesota’s highways, byways, and freeways. 

Auto-Owners uses independent agents when selling their car insurance products. Coverages featured include options for damage, such as collision, comprehensive and medical payments, roadside assistance, loan/lease gap policies, and more. Auto-Owners also features ways to save, with discounts for total payments, paperless billing, and good students. 

Minnesota Insurance Demographics

Demographics play a big part in the rates that insurers offer. Below are some examples of factors that take part in determining the cost of car insurance in Minnesota. 

  • Crime Rates: Minnesota’s crime rates have increased from 2.4 per 1,000 people to 2.8 for violent crimes.
  • Average Household Income: The average household income is $82,933. The median household income is $63,229.
  • Median Age Range: The median age range is 37.8 years of age. 
  • Education: In Minnesota, 54% of residents have an associate degree or higher.

Common Risk Factors In Minnesota

Common risk factors that increase car insurance rates in Minnesota are:

  • Distracted Driving
  • Driving Under Influence
  • Racing
  • Reckless driving
  • At-fault accidents
  • Property damage
  • Speeding

Auto Insurance Laws In Minnesota

There are specific driving laws in Minnesota, and failing to meet the state minimum requirements exposes you to fines, suspensions, penalties, and even jail time. These laws are there to protect not only you but other motorists on the road.

What are the minimum car insurance requirements?

There is a minimum amount of insurance that you need to have to operate your vehicle in Minnesota legally. That includes:

  • $60,000 per accident for all injuries
  • $30,000 per person for bodily injuries
  • $25,000 per person and $50,000 per accident bodily injury liability for uninsured motorists
  • $10,000 for property damage
  • $40,000 per person for personal injury protection.

The minimum limits are expressed as 30/60/10.

Am I required to carry uninsured motorist coverage?

Drivers in Minnesota must carry uninsured and underinsured motorist coverage of $25,000 per person and $50,000 per accident.

Minnesota SR-22 policies

An SR-22 is a legal requirement required if you’ve had a DUI conviction or ticket for driving without insurance. It’s not an insurance policy but a form issued by your insurance company to ensure that you remain insured.

Is Minnesota a no-fault state?

Minnesota is a no-fault car insurance state. That means your insurer covers the cost of losses after the accident despite whose at fault.

What happens if my vehicle isn’t properly insured in Minnesota?

Driving without insurance comes with penalties, and a first-time offense is punishable by a fine of $200 to $1,000 and up to 90 days in jail. A suspended license or more jail time is possible if it’s a second offense.

Does Minnesota accept digital insurance cards?

Minnesota is one of many states that allow electronic proof of insurance coverage.

How Much Does Car Insurance In Minnesota Cost?

Car insurance in Minnesota is determined by many different things, including where you live and the type of coverage you’re looking for. There are deciding factors such as the city you live in, the insurer you choose, gender, age, driving record, and credit score that come into play when getting an insurance quote. 

Average Cost of Car Insurance By City

Auto insurance in Minnesota depends on many factors, including the city in which you live. Some cities have cheaper insurance rates than others. 

CityAverage Minnesota Car Insurance CostDifference From Minnesota Average
St. Paul$1,94819%

Average Cost of Car Insurance By Company

The car insurance company that you choose determines the cost of your car insurance in Minnesota. Some insurance companies are cheaper than others. 

Car Insurance CompanyAverage Liability-Only Premium (Annually)Average Full-Coverage Premium (Annually)
American Family$590$1,176

Average Cost of Car Insurance By Age

Your age does play a factor in the cost of your car insurance in Minnesota. Younger drivers typically pay more than older, more experienced drivers. 

AgeAverage Full-Coverage Premium (Annually)
Age 16$2,217
Age 18$4,177
Age 20$3,333
Age 25$2,011
Age 30$1,741
Age 40$1,643
Age 50$1,548
Age 60$1,510
Age 70$1,600

Average Cost of Car Insurance By Gender

You wouldn’t think that gender would play a role in the cost of car insurance, but in Minnesota, there is a small difference in rates depending on gender. 

GenderAverage Full-Coverage Premium (Annually)

Average Cost of Car Insurance By Credit Score

A credit score is a major factor determining the cost of your car insurance in Minnesota. Insurers believe that people with excellent credit are more dependable drivers. 

Credit ScoreAverage Annual Rates
Very Good$1,305

Average Cost of Car Insurance By Driving Record

Your driving record plays a big part in your car insurance rate. If you have a terrible driving record, it costs more for insurance than if you’re a good driver. 

Driving IncidentAverage Full-Coverage Premium (Annually)% Increase In Average Full-Coverage Premium
Speeding Ticket$2,06220%

What Optional Insurance Coverages Should You Consider?

These are a few of the optional coverages available to you in Minnesota:

Auto Insurance Discounts

There are many discounts for auto insurance in Minnesota based on the car you own, how you drive, and the insurer you choose. There are safe driver discounts, new driver discounts, multi-car discounts, and bundling discounts.


Is car insurance in Minnesota expensive?

Car insurance in Minnesota is affordable. The cost of car insurance is 12% less than the national average.

What kind of car insurance do I need in Minnesota?

The minimum limits for car insurance in Minnesota are expressed as 30/60/10.

Is mn a no-fault state?

Minnesota is a no-fault car insurance state.

What are the two types of insurance required by MN?

The two main insurances required in Minnesota are liability and personal injury protection.

Does insurance follow the car or the driver in MN?

Car insurance follows the car in Minnesota. The types of car insurance are uninsured motorist protection, collision, comprehensive, and property damage liability.

How To Purchase Car Insurance In Minnesota

The easiest way to purchase affordable car insurance in Minnesota is to get and compare several quotes. Use our online quote tool to do this today.