Cheapest Car Insurance in Minnesota 2025: A Comprehensive Guide

Discover the cheapest car insurance coverage options in Minnesota (MN) for 2025. This guide covers average costs, top providers, and tips to lower your premiums for young drivers, those considered a high risk to insure, and other driver profiles. Learn how your driving profile impacts rates and get the best deal on your coverage.

Finding affordable car insurance in Minnesota is important for drivers looking to balance coverage with cost. Minnesota has a variety of car insurance providers with competitive rates for different types of clients, including teenagers and high-risk drivers.

In this guide, we'll explore the cheapest car insurance options available in Minnesota for 2025. We'll also look at how your driving profile impacts the rates and what factors can determine your premiums.

Why Is It Important to Find Affordable Insurance?

Having the right car insurance policy is about protecting yourself financially in case of accidents or damage. Auto insurance can be costly, especially for young and high-risk drivers. When you understand the open market and compare quotes from different providers, you can find the cheapest auto insurance MN has to offer to meet your needs without sacrificing protection.

Average Car Insurance Costs in Minnesota

On average, Minnesota drivers pay approximately $1,975 per year, which works out to about $165 per month. For minimum coverage, the average cost is around $550 annually, or about $46 per month. These averages are lower than the national average.

However, your exact rates can vary depending on several factors, including your driving history, age, credit score, and the type of coverage you select.

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 recent data, the following companies consistently offer some of the most affordable car insurance in Minnesota:

Source: Cheapest Car Insurance in Minnesota for 2025 (US News)

Cheapest Car Insurance, MN: Based on Driver Ages

Insurance premiums aren’t one-size-fits-all. The cost of car insurance varies 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. Cheapest Auto Insurance, Minnesota: Teenagers

Insurance companies view teenage drivers as a high-risk group. This is because of their lack of experience and higher accident rate. As a result, teens always pay higher premiums than older, experienced drivers. But some companies offer more competitive rates for teens, including:

• Auto-Owners: $2,902 annually for females, and $3,766 for males.
• Travelers: $4,081 annually for females, and $4,669 for males.

Source: Cheapest Car Insurance in Minnesota for 2025 (US News)

2. Cheap Car Insurance, Minnesota: Young Adults

Young adults (25-year-olds) often receive lower premiums than teens because they have more driving experience. As such, insurers offer competitive rates for these drivers, with the best being:

• Selective: $1,616 annually for females, and $1,740 for males.
• USAA: $1,640 annually for females, and $1,722 for males.

3. Cheapest Car Insurance, Minnesota: Adults

Adult drivers (married 40-year-olds) get cheap auto insurance because they have multiple years of driving experience. Many insurers value this. Cheap auto insurance, Minnesota, with the best rates for these drivers includes:

• USAA: $1,284 annually for females, and $1,284 for males.
• Selective: $1,428 annually for females, and $1,484 for males.

4. Cheapest Car Insurance, MN: Senior Drivers

Seniors (60-year-olds and above) often get lower rates due to several factors. One is that they drive less, leading to lower-mileage discounts. Also, because seniors drive less, they’re less likely to get into accidents, leading to lower premiums.

Some of the cheapest auto insurance Minnesota has to offer to this age group are:

• Selective: $1,243 annually for females, and $1,260 for males.
• USAA: $1,194 annually for females, and $1,197 for males, but only available to the military community.

Source: Cheapest Car Insurance in Minnesota for 2025 (US News)

Cheapest Auto Insurance, Minnesota: Based on Driver Profiles

1. Drivers with a Clean Record

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

• USAA: $1,387 annually for full coverage.
• Selective: $1,462 annually for full coverage.

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

2. High-Risk Drivers (Speeding Tickets, DUI, At-Fault Accidents)

High-risk drivers 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:

• State Farm: $2,033 annually for full coverage with one DUI.
• Auto-Owners: $1,885 annually for full coverage with one accident.
• Auto-Owners: $1,669 annually for full coverage with one speeding violation.

Source: Cheapest Car Insurance in Minnesota for 2025 (US News)

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

3. Drivers with Poor Credit

Your credit score can impact 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:

• Selective: $2,641 annually for full coverage.
• West Bend: $2,810 annually for full coverage.

Source: Cheapest Car Insurance in Minnesota for 2025 (US News)

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

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.

Minnesota law requires drivers to carry liability insurance and Personal Injury Protection (PIP). 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 high out-of-pocket costs in case of an accident.

Optional Car Insurance Coverages in Minnesota

In a serious accident, your policy only pays up to its limits. Therefore, you must pay the other driver any expenses that exceed those minimum limits yourself.

Buying only minimum coverage is a financial risk. On the other hand, optional coverages protect you from large losses. Some additional coverages to consider in Minnesota include:

1. Collision Insurance

Collision coverage pays to repair or replace your vehicle after a collision with another car or an object like a tree.

1. Comprehensive Coverage

Comprehensive insurance covers damage not caused by a crash. This includes fire, flooding, vandalism, or theft.

2. Rental Reimbursement Coverage

Rental reimbursement pays for a rental car, up to a set limit, while your vehicle is being repaired after a covered claim.

3. Non-owner Insurance

Non-owner coverage covers your liability for bodily injury and property damage that you cause to others in an accident as the at-fault driver. It applies if you regularly drive a car you do not own. However, note that it does not cover vehicles owned by someone in your household.

4. Non-owner Insurance

Non-owner coverage covers your liability for bodily injury and property damage that you cause to others in an accident as the at-fault driver. It applies if you regularly drive a car you do not own. However, note that it does not cover vehicles owned by someone in your household.

Factors Affecting Car Insurance Rates in Minnesota

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

• Driving Record: A clean driving record typically results in lower premiums, while accidents or violations can increase rates.
• Credit Score: Insurers often use your credit score to determine your rates; higher scores result in lower auto insurance 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: The type of car you drive affects your insurance cost. Safe cars with low accident rates and low repair costs get cheaper insurance in MN. In contrast, an expensive sports car requiring imported parts will always be more expensive to insure.
• Age and Gender: Younger drivers, especially males, tend to face higher premiums because insurers consider them a higher risk statistically.

Tips for Lowering Minnesota Car Insurance Costs

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

1. Shop Around: Get quotes from multiple insurers to find the cheapest policy. 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 lower your insurance premiums.

Frequently Asked Questions

What Is the Average Cost of Car Insurance in Minnesota?

The average cost of car insurance in Minnesota is approximately $1,975 per year for full coverage and $550 for minimum coverage.

Which Car Insurance Company Offers the Cheapest Rates in Minnesota?

Westfield and USAA offer some of the lowest rates in Minnesota, with Westfield averaging $287 per year for minimum coverage and $2,125 for full coverage.

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 car insurance discounts for safe driving, good grades, or installing safety features.

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 State Farm and Auto-Owners offer competitive rates for high-risk drivers.

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. In addition, drivers must have Uninsured Motorist ($25,000 per person and $50,000 per accident) and Underinsured Motorist ($25,000 per person and $50,000 per accident).

Is Minnesota a No-Fault Car Insurance State?

Yes, Minnesota is a no-fault state. This means all drivers must carry Personal Injury Protection (PIP) coverage. After an accident, your own PIP policy pays for your medical expenses, funeral costs, and lost wages regardless of who caused the crash. However, note that it does not cover property damage.

Are there Car Insurance Alternatives in Minnesota?

Yes, there’s an alternative. Drivers can get coverage through the Minnesota Automobile Insurance Plan (MNAIP). The MNAIP has specific requirements, such as certification that the driver tried to get standard insurance within the last 60 days and was refused. It's a good option for drivers who can’t get cheap auto insurance, MN.

Which Cities in Minnesota Have the Cheapest Car Insurance Rates?

Car insurance rates in Minnesota change depending on your city. Smaller towns almost always have lower average premiums. For example, Perham and Thief River Falls have some of the cheapest average monthly full coverage rates in the state, at $213 and $215, respectively.