Finding affordable car insurance in Minnesota is essential for drivers looking to balance coverage with cost. Whether you're a young driver, have a clean driving record, or fall under the high-risk category, Minnesota offers a variety of car insurance providers with competitive rates. In this guide, we'll explore the cheapest car insurance options available in Minnesota for 2024, average insurance costs, top providers, and tips to help you lower your premiums. We'll also look at how your driving profile impacts the rates and what factors play a significant role in determining your premium.

Why Is It Important to Find Affordable Insurance?

Having the right car insurance isn't just about staying legal; it's about protecting yourself financially in case of accidents or damage. Auto insurance can be costly, especially for certain driver profiles like young or high-risk drivers. But by understanding the market and comparing quotes from different providers, you can find affordable coverage that meets your needs without sacrificing protection.

Average Car Insurance Costs in Minnesota

On average, Minnesota drivers pay approximately $1,338 per year for full coverage, which works out to about $112 per month. For minimum coverage, the average cost is around $552 annually, or about $46 per month . These averages are lower than the national average, but your exact rate can vary significantly depending on a range of factors, such as your driving history, age, credit score, and the type of coverage you choose.

Insurance providers in Minnesota offer a range of options, from the bare minimum coverage required by law to more comprehensive plans. Choosing the right coverage depends on your specific needs and budget.

Top Cheapest Car Insurance Providers in Minnesota

Based on data collected from multiple sources, the following companies consistently offer some of the most affordable car insurance rates in Minnesota:

Data from NerdWallet and ValuePenguin reports on average rates in 2024.

These companies offer competitive rates, but individual quotes may vary depending on factors such as your driving history, coverage level, and additional policies you might bundle. It’s also important to note that companies like USAA are available only to military members, veterans, and their families, but they consistently rank as one of the most affordable providers.

Cheapest Car Insurance Options Based on Driver Profiles

Insurance premiums aren’t one-size-fits-all. The cost of car insurance varies greatly depending on your driving profile, and certain insurers offer better rates for specific types of drivers. Here’s a breakdown of the best options for various driver profiles:

1. Young Drivers (20-Year-Olds)

Young drivers often face higher premiums due to their inexperience on the road. However, some insurers provide more competitive rates for younger drivers:

• State Farm: $1,865 annually for full coverage.
• Progressive: $2,340 annually for full coverage.

Young drivers should also explore discounts like good student discounts, as insurers may lower premiums for those with high academic performance.

2. Drivers with a Clean Record

Drivers with no accidents or traffic violations on their record typically enjoy the best rates. If you have a clean driving record, these providers are your best options:

• Geico: $1,140 annually for full coverage.
• USAA: $1,023 annually for full coverage.

A clean driving record is one of the biggest factors in keeping your insurance premiums low, and insurers reward drivers with a history of safe driving.

3. Drivers with Poor Credit

Your credit score can have a significant impact on your insurance rates. Insurers believe that drivers with poor credit are statistically more likely to file claims. However, some companies offer better rates for those with lower credit scores:

• State Farm: $1,747 annually for full coverage.
• Geico: $1,920 annually for full coverage.

Improving your credit score can lower your premiums, so it’s worth focusing on your financial health to save on insurance.

4. High-Risk Drivers (DUI, At-Fault Accidents)

High-risk drivers—those with traffic violations, at-fault accidents, or DUIs—tend to face much higher premiums. Still, there are insurers who offer relatively affordable options for high-risk drivers:

• Progressive: $2,590 annually for full coverage with one DUI.
• USAA: $2,146 annually for full coverage with one DUI.

High-risk drivers should consider defensive driving courses or other rehabilitative measures to help lower their premiums over time.

Minnesota Auto Insurance Laws and Requirements

Minnesota operates under a no-fault insurance system, which means that your insurance company covers your medical expenses in the event of an accident, regardless of who was at fault. The state requires drivers to carry Personal Injury Protection (PIP) and liability insurance. The minimum required coverage levels are:

• Bodily Injury Liability: $30,000 per person and $60,000 per accident.
• Property Damage Liability: $10,000 per accident.
• Personal Injury Protection (PIP): $40,000.
• Uninsured Motorist Coverage: $25,000 per person and $50,000 per accident.
• Underinsured Motorist Coverage: $25,000 per person and $50,000 per accident .

While meeting these minimums is required by law, many drivers opt for higher coverage limits to protect against significant out-of-pocket costs in case of an accident.

Factors Affecting Insurance Rates in Minnesota

Several factors influence your car insurance premiums in Minnesota. Understanding these factors can help you make smarter decisions when shopping for insurance:

• Driving Record: A clean driving record generally leads to lower premiums, while accidents or violations will increase rates.
• Credit Score: Insurers often use your credit score to determine your rates; higher scores result in lower premiums.
• Location: Drivers in urban areas, such as Minneapolis or St. Paul, may face higher rates due to increased traffic congestion, crime, and accident rates.
• Vehicle Type: High-performance or luxury vehicles usually come with higher premiums due to their repair or replacement costs.
• Age and Gender: Younger drivers, especially males, tend to face higher premiums because they are considered higher-risk statistically .

Tips for Lowering Your Car Insurance Costs in Minnesota

Here are a few strategies to help you reduce your car insurance premiums:

1. Shop Around: Get quotes from multiple insurers to find the best deal. Rates can vary significantly between providers.
2. Bundle Policies: Consider bundling your car insurance with homeowners or renters insurance to qualify for a multi-policy discount.
3. Increase Your Deductible: Opting for a higher deductible can lower your monthly premiums, but make sure you can afford the out-of-pocket cost in the event of an accident.
4. Take Advantage of Discounts: Look for discounts such as good driver discounts, good student discounts, or savings for installing anti-theft devices.
5. Maintain a Good Credit Score: Improving your credit score can significantly reduce your insurance premiums .

Conclusion

Minnesota drivers have access to a wide range of affordable car insurance options in 2024, but finding the best rate requires some research. Whether you're a young driver, high-risk driver, or have a clean record, there are insurers that can meet your coverage needs at competitive prices. Take the time to compare quotes, assess your coverage options, and utilize available discounts to ensure you’re getting the best possible deal.

Frequently Asked Questions

1. What is the average cost of car insurance in Minnesota?
   The average cost of car insurance in Minnesota is approximately $1,338 per year for full coverage and $552 per year for minimum coverage .
2. Which car insurance company offers the cheapest rates in Minnesota?
   State Farm and USAA offer some of the lowest rates in Minnesota, with State Farm averaging $328 for minimum coverage annually .
3. How can I lower my car insurance rates in Minnesota?
   You can lower your rates by shopping around for quotes, bundling policies, increasing your deductible, and taking advantage of discounts for safe driving, good grades, or installing safety features .
4. How do car insurance rates in Minnesota differ for high-risk drivers?
   High-risk drivers, such as those with a DUI or at-fault accidents, will face higher premiums. However, companies like Progressive and USAA offer relatively competitive rates for high-risk drivers .
5. What are the minimum car insurance requirements in Minnesota?
   Minnesota requires drivers to carry Bodily Injury Liability ($30,000 per person and $60,000 per accident), Property Damage Liability ($10,000 per accident), and Personal Injury Protection (PIP) coverage totaling $40,000 .