Minnesota Auto Insurance (2024)

If you are searching for cheap car insurance in Minnesota, it is helpful to familiarize yourself with what factors affect Minnesota auto insurance rates. This can help you narrow down the best auto insurance companies in Minnesota based on your driving record, desired coverages, and more. 

To help you find the cheapest car insurance in Minnesota, we are going to cover which providers are cheapest, as well as go over the relevant laws and regulations in Minnesota that can affect rates. 

Finding Cheap Auto Insurance in Minnesota 

Car insurance rates in Minnesota can vary greatly by driver history, area, and more. A company that is cheap for your friend may not be the cheapest company for you. If you have a serious infraction on your record, such as a DUI, or you live in an area with high rates, you will have to look harder for cheap insurance. 

Here’s a look at how average annual full coverage auto insurance rates in Minnesota compare with the rest of the U.S.

Read on to see what is the cheapest auto insurance in Minnesota by coverage, driver record, and more. 

Cheapest Minnesota Auto Insurance for Minimum Liability and Full Coverage

If you only want to carry a bare minimum policy, then you will find your rates are significantly reduced compared to carrying full coverage auto insurance, with most companies charging an average of around $500 a year. Just keep in mind that if you are in an accident, your out-of-pocket costs will also be significantly higher unless you own an older vehicle. 

Look at the table below listing cheap liability car insurance in Minnesota to see how much average minimum liability insurance costs compared to full coverage auto insurance. 

USAA and State Farm have some of the cheapest average rates for minimum liability insurance coverage, whereas Geico and Liberty Mutual have some of the highest insurance rates. Progressive’s rates fall in the middle.

If you can afford it, purchasing full coverage is a good idea. It will prevent you from having to pay high out-of-pocket bills to repair your car after an accident you’ve caused. However, rates increase when you add more coverage for better protection. The table below lists the average full coverage rates for different insurance companies in Minnesota, so you can see which offers cheap car insurance in the state. 

State Farm has some of the cheapest rates for full coverage in Minnesota, whereas Liberty Mutual once again has some of the most expensive average rates for insurance coverage. Read our State Farm auto insurance review and Liberty Mutual auto insurance review for more information on the companies. 

Cheapest Minnesota Auto Insurance for Bad Credit 

Your credit score will certainly impact auto insurance rates; drivers with poor credit can pay three times as much as drivers with good credit in Minnesota. This is because insurance companies view drivers with low credit scores as riskier to insure, as they will be more likely to miss payments than drivers with good credit. 

While USAA is generally one of the cheapest companies, it tends to raise prices substantially for bad credit scores. This is why shopping around is so important, as a cheap company may not actually be the cheapest for you based on your driver profile. 

Cheapest Minnesota Auto Insurance for a DUI 

A DUI can raise rates by over $1,000 in Minnesota. If you get a DUI, you should shop around and see if an insurance company raises rates less than your current insurance company. The table below shows the average rates that insurance companies will charge after a driver gets convicted of a DUI. 

Learn more: DUI Defined

The cheapest companies for DUI offenders are State Farm, American Family, and Nationwide. It’s important to note that a DUI in Minnesota may also result in fines, jail time, suspended licenses, and other penalties, depending on the severity of the offense. 

Cheapest Minnesota Auto Insurance After an At-Fault Accident

If you cause an accident, you will see an increase in your insurance rates unless your insurance company offers accident forgiveness for your first at-fault accident.

However, you may be able to find cheap auto insurance for drivers with accidents by comparing company rates. The table below shows the average rates at an insurance company for an at-fault accident. 

State Farm offers some of the cheapest rates in Minnesota for drivers who have an at-fault accident on their record. If you find your rates have increased substantially after an accident, make sure to shop around for car insurance quotes to see if another insurance company is cheaper. 

Cheapest Minnesota Auto Insurance for Young Drivers

Auto insurance costs more for young drivers, as they are more likely to crash due to inexperience. Teenagers who purchase their own policies often pay thousands more than older drivers. 

State Farm has some of the cheapest rates for teenagers, whereas Liberty Mutual has some of the most expensive, costing thousands more on average than State Farm.

Cheapest Auto Insurance Rates by City in Minnesota 

Even within a state, rates can change from city to city depending on each city’s risk factors, such as local crime or heavy traffic. Some of the most expensive rates can be found in Minneapolis, whereas some of the cheapest rates are in Rochester. 

Minnesota Driving and Insurance Laws 

State laws and penalties can affect insurance rates, such as the amount of insurance a state requires drivers to carry. Car insurance is mandatory in Minnesota, so all drivers must carry it. Read on to see how much insurance you must carry, Minnesota’s DUI laws, and when you need high-risk insurance. 

Minnesota Minimum Coverage Laws 

All Minnesota drivers must carry bodily injury liability, property damage liability, underinsured/uninsured motorist bodily injury, and personal injury protection (PIP). The required minimum amounts are as follows: 

• $30,000 per person and $60,000 per accident in bodily injury liability
• $10,000 per accident in property damage liability
• $25,000 per person and $50,000 per accident in uninsured/underinsured motorist bodily injury
• $40,000 ($20,000 for injuries and $20,000 for associated costs like lost wages) in personal injury protection

All Minnesota drivers must carry the coverage amounts above to drive in Minnesota legally. 

Optional Coverages in Minnesota 

Drivers are only required to carry the coverages listed in the previous section, which means all other coverages are optional. You don’t need to purchase coverages like collision, comprehensive, or roadside assistance in order to drive in Minnesota legally. 

However, you will be better protected if you purchase a full coverage policy. Collision auto insurance and comprehensive auto insurance will pay for repairs to your car in accidents caused by you or factors outside of your control, like the weather. Just bear in mind that your prices will increase when you add more comprehensive coverage options to your policy. 

Minnesota DUI Laws 

There are several penalties if you are charged with a DUI in Minnesota. Some of the consequences of DUIs include the following: 

• Fines and court fees 
• Suspended licenses 
• Ignition interlocks once the license is restored 
• Potential jail time 
• Increased SR-22 insurance rates

Consequences will increase in severity for each DUI offense. So while a driver might not go to jail for their first DUI offense, they may have to serve jail time for a second offense. 

Minnesota SR-22 Insurance Laws 

In Minnesota, drivers with serious infractions on their record, such as a DUI or driving without insurance or with a suspended license, must carry an SR-22 certificate. It ensures that you have Minnesota car insurance, although having an SR-22 certificate will increase your rates because it shows you are a high-risk driver. 
If you are currently insured, you can call and ask your car insurance company to apply for your SR-22 certificate. If you are uninsured, you may have to pay a fee to the new insurance company for them to file your SR-22 certificate. Some insurance companies may deny you coverage if you need an SR-22 certificate. 

If you don’t have a vehicle, keep in mind that you will need to purchase non-owner auto insurance to get SR-22 insurance because you need to show proof of insurance when applying for SR-22 certificates. 

The Final Word on Affordable Minnesota Insurance 

Finding cheap insurance in Minnesota requires comparing companies and doing your research into what raises rates. Serious driving infractions, such as a DUI, will raise your rates substantially. 

If you want to find cheap insurance in MN, shopping around for Minnesota auto insurance quotes will help you find which company is the cheapest based on your coverage needs and driving profile. Use our free rate comparison tool to find cheap Minnesota auto insurance rates from companies in your area.