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Updated: Mar 12, 2024

Minnesota Car Insurance: How to Shop for the Cheapest Rates

Find out how to shop for the cheapest car insurance rates in Minnesota and learn how to build a policy with adequate coverage for your needs.
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Minnesota is home to the twin cities and 10,000 lakes. The state also provides relatively low auto insurance rates, the average rate (with “full coverage”) being $1,619 per year. With lower rates in Minnesota, it's still important to find the right amount of coverage for a price that works for you.

Below is a guide in which we’ll be helping you find the right rate to match the type of coverage you'll need.

Average Car Insurance Rates in Minnesota

Statewide average premiums in Minnesota for three popular car insurance coverage levels (all premium information we’ll be providing comes from our sister site, Car

  • “Full coverage” –100/300/100***, with comprehensive and collision coverage, including a deductible of $500: $1,619 per year
  • Liability only, with 50/100/50: $663 per year
  • Liability only, using the state minimum coverage levels: $614 per year

The average rate may not apply to you since it’s just an average.

You may pay more or less depending on your specific circumstances, as well as where you live, your age, and the company providing your coverage.

Coverage levels

Coverage levels are often delineated with three numbers.

  • The first number represents bodily injury or death to one person in a single at-fault accident.
  • The second number represents bodily injury or death to two or more people in a single at-fault car accident.
  • The third number refers to property damage caused to other vehicles in an at-fault accident.

Full coverage also includes collision and comprehensive coverage, which pays for repairs to your vehicle no matter who is at fault.)

Factors that Will Affect Your Minnesota Car Insurance Premium

Below are seven factors that will determine the premium you’ll pay for Minnesota car insurance.


Gender will play a large role when it comes to your premium. Most states charge higher rates if you're a male. However, this is not the case in Minnesota.

A 30-year-old male will pay $178 per month for full coverage, while a 30-year-old female will pay $184 per month for the same policy.

Your age

Like most states, age in Minnesota is a major factor in determining your rate. This affects drivers under the age of 25 the most.

An 18-year-old male driver living in St. Paul will pay $328 a month, or $3,936 per year, for state minimum coverage. A 30-year-old male with the same coverage will pay $87 a month, or $1,044 per year.

In general, insurance rates will go up once you reach the age of 65. However, Minnesota law requires auto insurers to offer drivers age 55 and older a 10% discount for completing an approved defensive driving course.

Still, a 75-year-old male will pay $105 per month, or $1,260 per year, while a 30-year-old male with the same policy will pay $87 per month, or $1,044 per year.

Driving records

Your driving history will be the biggest factor in determining your insurance rate.

Speeding no more than 10-15 miles over the limit will produce a 22% premium increase.

Speeding 30 miles over the limit will produce a 27% premium increase. The average increase in Minnesota is 88% for a DUI/DWI first offense (subsequent offenses will be much higher and carry serious penalties).

Premium increases based on at-fault accidents can have a similar effect.

A typical car insurance premium in Minnesota will increase by 87% after an accident claim that’s determined to be your fault. That’s just an average since the premium increase will vary based on the dollar amount of any property damage claim or whether or not the accident resulted in bodily injury. That percentage will also change based on which company you choose; each company assesses risk differently.

Personal credit

Your credit score will play a large role as well. In Minnesota, a driver with bad credit will pay 43% more on their premium than a driver with good credit.

It’s important to compare company rates to find the right premium.

Coverage amount

We previously provided the factors that play into statewide average premiums based on the most popular coverage.

Just as a refresher, a policy with liability limits of 100/300/100 is $1,619 per year, while liability coverage limits of 50/100/50 is $663. State coverage for minimum liability is $614 per year.

But it may not be possible to simply carry the lowest liability levels. Your net worth should determine your liability limits. For example, if your net worth is less than $50,000, you might be able to take the state minimum coverage.

If your net worth is between $50,000 and $100,000, choose at least 50/100/50. If it's more than $200,000, choose at least 100/300/100. With too little coverage, a major claim or lawsuit could force you to out-of-pocket for expenses that exceed your policy limits.

The vehicle(s) covered

An older vehicle will usually cost less than a brand-new vehicle to insure.

Brand-new cars or certain vehicle types, like SUVs, pickup trucks, sports cars, and luxury cars will cost more to insure than a 12-year-old sedan.

With the older vehicle, you may not need collision and comprehensive coverage, at least if the vehicle is worth less than $3,000.

Auto insurer

The company you choose your premium with will be an important factor. The differences in pricing for the same premium between different companies can amount to thousands of dollars.

Below are the average statewide premiums for full coverage (100/300/100) by six major carriers operating in Minnesota:

  • State Farm: $1,278 per year
  • GEICO: $1,388 per year
  • Progressive: $1,543 per year
  • Amco: $1,538 per year
  • Illinois Farmers: $1,764 per year
  • Allstate: $2,210 per year

Notice that Allstate, the most expensive provider, charges premiums that are nearly double those of State Farm, the lowest-cost provider.

Average Minnesota Car Insurance Rate Based on Minnesota City

Even within the same state, there can be major variations in premium levels from one city or town to another.

With the statewide average premium at $1,619 in Minnesota for 100/300/100 coverage, average premiums on a local level are as follows:

  • Rochester: $1,512
  • Duluth: $1,596
  • St. Cloud: $1,656
  • Plymouth: $1,632
  • Maple Grove: $1,584
  • Bloomington: $1,776
  • Brooklyn Park: $1,932
  • Minneapolis: $2,028
  • St. Paul: $2,232

Car insurance will most likely be higher in more populated areas such as Minneapolis and St. Paul. More populated areas mean more traffic and potential for accidents. Rural and more remote areas will have lower rates.

Auto Insurance Laws in Minnesota

Minnesota is a no-fault state. Car insurance laws require that drivers carry minimum liability coverage limits of 30/60/10 on their vehicles. The minimum car insurance requirements in Minnesota are listed below:

  • Minimum bodily injury liability, one person: $30,000
  • Minimum bodily injury liability, two or more people: $60,000
  • Minimum property damage liability: $10,000
  • Uninsured/underinsured motorist bodily injury: $25,000/$50,000
  • Personal Injury Protection (PIP) or Managed Care (PPO): $40,000

If you are injured in an accident, no matter who is at fault, you’ll claim against your own policy first. If your PIP limits are maxed, you’ll claim against the at-fault person’s bodily injury liability.

Basic Information on Optional Coverages in Minnesota

As is the case in virtually every other state, there’s a wide range of optional coverages available to add to your policy in Minnesota. The most popular include:


While the personal property damage portion of a car insurance policy covers the cost of repairs to the other driver’s vehicle when you are determined to be at fault, it will not cover the cost of repairs to your vehicle.

You can add collision coverage specifically for that purpose. If you have a loan or a lease on your vehicle, your lender will require it.


This provision will cover your vehicle for damage sustained while it is parked. This includes theft, damage from falling objects, and weather-related hazards, like storm damage, or animal strikes.

Umbrella insurance

This is a type of liability coverage that’s recommended for high-net-worth drivers. It provides liability coverage in excess of a standard auto policy. It will pay if the coverage limits in your basic car insurance have been exceeded.

Guaranteed Auto Protection (GAP)

If your car is ever stolen or totaled in an accident, this add-on can help you cover the loss by paying off the lease or loan.

It’s not required (except by lenders on cars with loans greater than 80% of the vehicle’s value) but it is recommended if you believe you owe more on your car than it’s worth.

Rental car coverage

Minnesota law mandates that every car insurance policy include, under the property damage liability section, $35,000 in coverage for damage to (or loss of use of) a rental car -- without a deductible being required.

Tips to Get the Best Rates on Minnesota Car Insurance Policies

Below are the most popular strategies to get the best rates on car insurance in Minnesota:

Drive safely

Poor driving history can have the most impact on your premium. Drive safe and avoid any violations or at-fault accidents.

A clean driving history of 3 years or more will provide you with the best rates available.

Shop for the lowest-cost provider

As we saw above, the difference between two insurance companies can easily be $1,000 (or more) for the same coverage. Shop around and see who has the best rates.

Complete a safe driver course

If you have a poor driving history, your insurance company may allow you to complete an approved safe driver course. It could lower your premium by 10% or more.

Don’t keep more liability coverage than you need

If you're new to driving, full liability coverage may not be necessary. The state minimum may be enough.

Take advantage discounts

Check with your insurance company to see how many discounts they have available. Take advantage of any and all that apply to you.

Keep your credit clean

You can pay 43% more for car insurance in Minnesota for having poor credit.

Keeping your credit clean for at least the last two or three years will help you secure a better rate.

Bottom Line

Minnesota may be one of the lowest-cost states in the country for car insurance, but you should still do all you can to pay as little as possible.

Just make sure that doesn’t come at the expense of having proper coverage amounts and provisions.