The best cheap car insurance in Minnesota

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. Terms apply to offers listed on this page. Read our editorial standards.


Car insurance

is relatively affordable for Minnesota drivers. According to the Insurance Information Institute, the average driver pays $840, less than the US national average. 

Shopping around for coverage is the best way to ensure you’re getting the best price for yourself. Car insurance companies consider your location, age, gender, and driving record to calculate rates for premiums. Other factors like credit score, marital status, vehicle type, previous coverage, and miles driven can all play a role in the amount you’ll pay for coverage.

Every company weighs these factors differently, so getting quotes from different companies and comparing them is the best way to find the most affordable policy for you.  

Minimum car liability insurance requirements in Minnesota

In the US, drivers must have liability coverage. If you’re involved in an accident, liability insurance covers damage you cause to the other vehicle, river, and passengers. If you finance or lease your car, your lender probably requires comprehensive and collision coverage

The two main components of liability insurance are bodily injury and property damage, which most states require. Liability insurance also includes uninsured motorist and underinsured motorist coverage to protect you when an at-fault driver hits you and they have no coverage or not enough coverage.

According to the Insurance Information Institute, Minnesota requires bodily, property, personal, uninsured, and underinsured coverage. Minnesota’s minimum liability requirements are 30/60/10 — up to $30,000 of injury protection for each person involved in an accident, up to $60,000 worth of injuries per incident, and up to $10,000 of property damages per incident. 

Best cheap car insurance in Minnesota based on credit score

Consumer Reports compiled a list of all car insurance pricing formulas from all companies in every state. It used an average single adult driver to find the best pricing in each state and found that three companies came out on top for three different credit levels. Here are the three best companies and their average price for coverage:

Best car insurance for Minnesota drivers with a clean record

For a driver in Minnesota age 25 or older with no accidents and one vehicle, the following companies provide the best average rates:

*USAA is only for active military, veterans, and their families.

Above data obtained from Savvy, based on 1,431 policyholders in the state of Minnesota 

Best car insurance for Minnesota drivers with one or more accidents

For a driver in Minnesota age 25 or older, with one or more accidents and one vehicle, the following companies provide the best average rates:

Above data obtained from Savvy, based on 1,431 policyholders in the state of Minnesota 

Average premiums for seniors and teen drivers in Minnesota

The table below shows the average senior and teen drivers can expect to pay in Minnesota. Because teen drivers are new drivers with little driving history and more prone to accidents, their rates are high. Most insurance companies offer discounts to teen drivers for good grades or taking driving safety classes.

Senior drivers typically see an uptick in car insurance premiums as they age, but not as much of an increase as new or teen drivers. If you’re still driving in your 60s and 70s, there are ways to negotiate cheaper auto insurance rates, like pay-per-mile usage.

Data provided by Goosehead Insurance

Minnesota car insurance rates by city

Below is the estimated average annual premium of


auto insurance

policies per household in Minnesota’s most populous cities:

Data from S&P Global Market Intelligence

Best car insurance in Minnesota based on customer satisfaction

Customer satisfaction with car insurance providers may factor into your decision. Five factors make up customer satisfaction: billing process and policy information; claims; interaction; policy offerings; and price. According to a 2021 survey by J.D. Power, a consumer research company that surveys customers, these are the top car insurance companies in the Central region (which includes Minnesota):

The following are the most popular car insurance companies in Minnesota, based on the percentage of insured Minnesota drivers who use them:

*USAA is only for active military, veterans, and their families.

Data from S&P Global Market Intelligence

Who gets the best cheap car insurance in Minnesota?

Your credit score is one of the more significant influences on the price you’ll pay for coverage.

Another way to save is to shop around — every insurance company prices policies differently, and no two policies are the same. Prices vary greatly depending on whether you get liabilitycomprehensive, or collision coverage.

Consider the amount of coverage and the types of coverage listed on your quote. Remember, you’re looking for the most coverage for your money. Don’t forget to look at the deductible or the amount you’ll pay out of pocket if you get into an accident.

Ronda Lee was formerly an associate editor for insurance at Personal Finance Insider covering life, auto, homeowners, and renters insurance for consumers. Before joining Business Insider, she was a contributing writer at HuffPost with featured articles in politics, education, style, black voices, and entrepreneurship. She was also a freelance writer for PolicyGenius. She worked as an attorney practicing insurance defense and commercial litigation. 


Ryan Wangman, CEPF

Junior Loans Reporter

Ryan Wangman is a junior reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF).
In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe. 
Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services here>>


Read More