CheapInsurance.com has compiled information, tips, and price comparisons to help you find cheap car insurance in Minnesota.

The name “Minnesota” comes from a Dakota Sioux word meaning “clear blue water.” The state of Minnesota is also known as the Land of 10,000 lakes, having the highest number in the U.S. The lakes make it a great location for water sports enthusiasts who can indulge in outdoor activities such as hiking, camping, and fishing.

Many of the beautiful lakes and waterways can be found in the Voyageurs National Park which is easy to explore with your own or a rental car. 

During the winter months, there is a lot of snowfall in Minnesota which leads to numerous motor car accidents, so be sure to drive with extra care. Also ensure that you have car insurance because it’s a legal requirement in Minnesota.

The average cost of car insurance in Minnesota is $537 per year for minimum coverage and $1,643 annually for full coverage insurance. 

Land of 10,000 Lakes: Updates & Insurance Insights for Minnesota 2024

Hit the open road or explore Minnesota with these key updates for Minnesota drivers in 2024:

Minnesota Vehicle Code Changes:

  • Distracted driving crackdown: Effective July 1st, holding a phone while driving becomes completely prohibited, even at stoplights. Hands-free devices remain acceptable. (Source: Minnesota House File 8)
  • Increased penalties for driving without insurance: Expect harsher fines and potential vehicle impoundment for driving without valid auto insurance. (Source: Minnesota Statute 72A.201)
  • New electric vehicle (EV) incentives: Existing tax credits and rebates for EV purchases continue. Stay updated through the Minnesota Department of Commerce. (Source: Minnesota Department of Commerce)

Remember: These are just highlights, and other changes may apply. Visit the Minnesota Department of Public Safety website for complete information. (Source: Minnesota Department of Public Safety)

Average Auto Insurance Rates in Minnesota (2024):

(Sources: The Zebra, Bankrate)

CompanyFull CoverageMinimum Coverage
State Farm$1,310$442
GEICO$1,263$401
Progressive$1,351$387
Farmers$1,400$429
Liberty Mutual$1,459$457

Remember: Individual rates in Minnesota can vary significantly based on driving history, location, vehicle type, and desired coverage. Consider the impact of Personal Injury Protection (PIP) coverage on your rates.

Is Minnesota an “At-Fault” Insurance State?

Minnesota is a no-fault car insurance state, which means that your own car insurance company pays for covered costs after an accident, no matter who caused the crash.

No-fault also means each driver’s insurance company pays their client’s medical bills no matter who caused the collision.

Minnesota drivers can purchase personal injury protection (PIP) coverage for that purpose.

Key Point: What Is PIP Coverage?

Personal injury protection (PIP), also known as no-fault insurance, helps cover expenses like medical bills, lost wages, or funeral costs after a car accident, no matter who is at fault.

Requirements for this coverage vary from state to state. PIP Insurance does not cover:

  • Property damage
  • The other drivers’ injuries in a collision.
  • Any injuries from an accident while you were committing a crime, like fleeing the police.
  • Injuries in an accident where you receive payment for driving.

What Is Minimum Liability Car Insurance in Minnesota?

Minimum liability insurance is the least amount of coverage you need to pay for any damages you cause. Liability insurance typically includes:

  • Bodily injury liability coverage: Bodily injury liability coverage covers other people’s physical damages in an accident.
  • Property damage liability coverage: Property damage liability coverage covers damages to the other driver’s property.

The minimum liability car insurance requirements in Minnesota are as follows:

  • Personal injury protection (PIP): $40,000.
  • Bodily injury liability insurance: $30,000 per person and $60,000 per accident.
  • Property damage liability: $10,000 per accident.
  • Underinsured motorist insurance: $25,000 per person and $50,000 per accident.
  • Uninsured motorist insurance: $25,000 per person and $50,000 per accident.

While PIP covers medical bills, minimum liability coverage won’t cover your vehicle if you are responsible for the accident.

To get full coverage car insurance, consider adding collision or comprehensive insurance to your auto insurance policy.

Car rental companies usually require these types of insurance, as well.

Factors Affecting the Cost of Car Insurance in Minnesota

What you pay for car insurance will depend on factors in your unique driving profile, including the kind of car you drive and the amount of coverage you need.

Other factors include:

  • Your age. Drivers under 25 and over 65 pay higher auto insurance rates because they are statistically more likely to be involved in accidents.
  • Location. Cities with higher population densities charge steeper car insurance premiums because the chances of accidents are higher than in rural areas. Minneapolis, for example, is one of the most expensive locations for insurance in Minnesota.
  • A poor credit rating. In Minnesota, a driver with a poor credit score will likely pay higher car insurance premiums than a driver with an excellent credit score.
  • You can also demonstrate financial responsibility by maintaining minimum car insurance with no gaps in coverage. Letting your coverage lapse could result in a higher rate when you get your next policy.

To help you find the best deals on car insurance in the state, we’ve compared automobile insurance quotes from these car insurers:

  • Liberty Mutual.
  • Travelers.
  • The General.
  • Bristol West.

Because the cost of automobile insurance is dependent on your individual driving profile, we’ve gone a step further and compared the cost of Minnesota car insurance for these types of drivers:

  • Good drivers (those with a clean driving record).
  • Young drivers (those aged between 16 and 25).
  • Bad drivers (those with a history of traffic violations).

Is It Legal to Drive without Car Insurance in Minnesota?

Driving without insurance is considered a misdemeanor in Minnesota. After your first and second offenses, penalties and fines are assessed and they increase dramatically thereafter.

Upon your third offense within 10 years, you could be found guilty of a gross misdemeanor, which means that you could lose your driver’s license and registration for a year. 

Fines could be as high as $3,000 in Minnesota for driving uninsured. To regain driving privileges, you’ll be required to show proof of insurance and pay a $30 reinstatement fee.

If you can provide proof that you had insurance coverage in Minnesota at the time you were pulled over, you may be able to have your citation dismissed.

Minimum Liability Insurance in Minnesota

We have found that on average, the cost of a minimum liability car insurance policy in Minnesota is $214.53.

Liberty Mutual offers the lowest insurance rates for minimum liability coverage on average, costing $153.60.

Cheapest Minimum Liability Car Insurance in Minnesota
ProviderHennepin CountyRamsey CountyDakota CountyAnoka CountyWashington CountyAverage
Liberty Mutual$167.00$184.00$126.00$136.00$155.00$153.60
The General$167.00$184.00$304.00$396.00$270.00$264.20
Bristol West$167.00$184.00$280.00$268.00$230.00$225.80

Find Cheap Comprehensive Car Insurance in Minnesota

While having a full coverage car insurance policy is optional in Minnesota, you should consider purchasing it if you can afford to.

If you choose not to take out comprehensive car insurance, it would benefit you to have savings that will cover damage to your vehicle in the event of the following:

  • Theft or theft of parts.
  • Non-crash damage (natural disasters, fire, flooding).
  • A broken windshield.
  • Car damage from hitting an animal.

Repairing car damage can escalate rapidly into thousands of dollars.

Without comprehensive car insurance, you risk finding yourself in a situation where you are unable to drive your car because you cannot afford to repair it.

To help you find the cheapest full coverage car insurance in Minnesota, we’ve compared the rates offered by four insurers.

We found that the two cheapest car insurance companies in Minnesota are:

  • Liberty Mutual with average rates of $171.50.
  • Travelers with average rates of $194.00.
Cheapest Full Coverage Insurance in Minnesota
ProviderHennepin CountyRamsey CountyDakota CountyAnoka CountyWashington CountyAverage
Bristol West$517.00$528.00$308.00$268.00$330.00$390.20
Liberty MutualN/A$208.00$142.00$136.00$200.00$171.50
TravelersN/A$255.00$187.00N/A$140.00$194.00
The GeneralN/AN/AN/A$396.00$390.00$393.00

Cheap Car Insurance in Minnesota for Drivers with Clean Driving Records

You can qualify for good driver rates by practicing safe driving and having a motor vehicle record that is free of accidents and claims.

Companies may offer one or both of two common types of good driver discounts:

  • A discount for avoiding violations for a certain number of years.
  • A discount for avoiding accident claims for a certain number of years.

If you are a new driver without enough driving experience to qualify for a good driver discount, you may wish to consider enrolling in a defensive driving course in order to increase your road sense.

Some auto insurance companies will offer an additional discount if you have completed an accredited defensive driving course.

We’ve looked at the average car insurance rates offered by auto insurance companies for good drivers. The three cheapest companies for good drivers are:

  • Liberty Mutual with average rates of $158.60.
  • Travelers with average rates of $213.00.
  • Bristol West with average rates of $381.20.
Cheapest Car Insurance for Good Drivers (Clean Driving Records) in Minnesota
ProviderHennepin CountyRamsey CountyDakota CountyAnoka CountyWashington CountyAverage
Liberty Mutual$174.00$191.00$132.00$136.00$160.00$158.60
Travelers$232.00$247.00$183.00N/A$190.00$213.00
The General$457.00$476.00$323.00$396.00$400.00$410.40
Bristol West$491.00$502.00$295.00$268.00$350.00$381.20

Cheap Car Insurance in Minnesota for High-Risk Drivers

Auto insurance companies use the term ‘high risk’ to describe drivers who are more likely to make a claim against their auto insurance policy.

Some of the offenses that may lead to being considered a high-risk driver include:

  • Receiving a DUI conviction.
  • Reckless driving.
  • Speeding tickets.
  • Driving without meeting the minimum liability coverage requirements.
  • A poor credit history.
  • Unpaid insurance policy premiums.

If you are a high-risk driver, Minnesota car insurance companies are likely to increase the cost of your insurance.

We’ve done the hard work of comparing quotes from various insurers to help you find the best rate.

The cheapest Minnesota auto insurance company for high-risk drivers is Bristol West at $543.60.

Cheap Auto Insurance for Bad Drivers in Minnesota (DUI, Traffic Ticket)
ProviderHennepin CountyRamsey CountyDakota CountyAnoka CountyWashington CountyAverage
The General$702.00$725.00N/A$651.00$655.00$683.25
Bristol West$709.00$728.00$465.00$406.00$410.00$543.60

Cheapest Car Insurance in Minnesota for Young Drivers

Since young drivers have less experience behind the wheel, insurers tend to charge them higher rates compared to more mature drivers.

A full coverage policy is recommended for teen drivers if they can afford it.

Teens tend to get into accidents more often than adult drivers, so they’re more likely to benefit from having repairs on their car covered.

A minimum coverage policy, though it is much cheaper, could ultimately cost more if a teen gets into a serious accident and has to pay for repairs completely out-of-pocket.

Good student and driver safety course discounts can help young drivers reduce their rates, as can staying on a parent’s policy for as long as possible.

On average, most drivers will see their rates decline as they get older, with a significant decrease once they turn 25 years old.

We’ve compared the cost of car insurance for young drivers to help you save on auto insurance costs.

The cheapest auto insurance for young drivers is Liberty Mutual with average rates of $150.00 per month.

Cheapest Car Insurance for Young Drivers in Minnesota
ProviderHennepin CountyRamsey CountyDakota CountyAnoka CountyWashington CountyAverage
Bristol West$617.00$608.00$433.00$365.00$370.00$478.60
The General$645.00$671.00N/A$588.00$600.00$626.00
Liberty MutualN/A$192.00$151.00$127.00$130.00$150.00
TravelersN/AN/A$345.00N/A$250.00$297.50

Need Cheap Car Insurance in Other States?

Out-of-state insurance is illegal in almost all U.S. states and is considered to be insurance fraud. This means that your car insurance must be registered in the state in which you live.

Some of the penalties for committing insurance fraud include:

  • Up to five years in prison.
  • A $50,000 fine.

If you plan to move from Minnesota, you will need to find a new car insurance company in the state you move to. You will usually have a 90-day grace period to cancel your car insurance and get car insurance in your new state.

Top Tips for Finding Affordable Car Insurance

Consider how you use your car

If you only use your car to drive short distances such as to work and the grocery store, most types of standard car insurance should cover your needs.

If you have unique needs, you should check whether your car insurance company covers these requirements.

Unique needs may include:

  • Multiple drivers sharing one car.
  • Using your car for ridesharing.
  • Using your car for work-related deliveries.
  • Consolidating all of your insurance policies under one provider.

Compare quotes from different car insurance companies

It’s always a good idea to shop around before making a decision about car insurance.

Although you can do the research yourself, going through an insurance agent can save you a lot of time and money.

The only way to be completely certain that you’re getting the best rates on your car insurance is to compare quotes from multiple insurers.

To save time, you can go through a licensed insurance agent or compare quotes from different insurance providers by using our buttons above.

Top Car Insurance Companies in Minnesota

The General

The General is an auto insurance provider that operates in multiple states across the U.S.

The company was originally founded in 1963 and specializes in car insurance coverage for high-risk drivers.

The General Automobile is a subsidiary of PGC Holdings Corporation (PGC) which is an affiliate of American Family Insurance.

PGC has been writing automobile insurance in many states throughout the country for nearly 60 years. It is a leader in the low-cost auto insurance field and has a Better Business Bureau (BBB) Rating of A+.

Bristol West

Founded in 1973, Bristol West’s national footprint makes it one of the top ten biggest insurance companies in the U.S.

Bristol West was originally created to provide high-risk drivers with affordable insurance policies and has since expanded its services to all types of drivers.

Some of the benefits offered by Bristol West include:

  • Multiple policy bundling discounts.
  • Personalized car insurance policies.
  • Rideshare coverage.
  • Medical payments.
  • Gap coverage.
  • Towing and roadside assistance.
  • Rental car reimbursement.

Car Insurance in Minnesota FAQs

Do I need to have car insurance in the State of Minnesota?

Like car accident laws, car insurance requirements vary from state to state. In Minnesota, every motorist must carry the following minimum liability insurance:

  • Bodily injury liability: $30,000 per person and $60,000 per accident.
  • Property damage liability: $10,000.
  • Personal injury protection (PIP): $40,000.
  • Underinsured motorist insurance: $25,000 per person and $50,000 per accident.
  • Uninsured motorist insurance: $25,000 per person and $50,000 per accident.

What are the cheapest car insurance companies in Minnesota?

The amount you pay for a car insurance policy in Minnesota depends on several criteria, including your age, credit score, and gender, along with your claims and driving history.

For minimum liability, the cheapest auto insurance on offer is from Liberty Mutual at $153.60, with the cheapest comprehensive cover also available from Liberty Mutual for $171.50.

What is the best auto insurance company in Minnesota?

Determining the best auto insurance company in Minnesota comes down to individual preferences and needs. When choosing the best auto insurance, consider what is most important to you, such as price, coverage offerings, available discounts, or customer satisfaction. The best insurance company may not have the cheapest insurance rates but may excel in another important area for you.

How long do you have to insure a new car in Minnesota? 

The Minnesota new car insurance grace period is 2 to 30 days in most cases. The new car grace period is how long insured drivers are allowed to drive a newly purchased vehicle before adding it to an existing car insurance policy.

How do I find cheap car insurance in Minnesota?

To find the cheapest car insurance in Minnesota, we recommend comparing insurance quotes from multiple companies. This can be a time-consuming process, so why not let us help you find the best deals?