The Cheapest Auto Insurance in Minnesota in 2024

If you’re looking for cheap car insurance in Minnesota, you don’t just want low premiums — you want affordable coverage that will protect you and your vehicle against the unpredictable.

Statewide, car insurance averages $126 per month in the Land of 10,000 Lakes, which makes it a pretty expensive state to insure your vehicle. But don’t worry. We’ll help you find the companies offering the cheapest car insurance in the state.

Key Takeaways:

• Car insurance costs an average of $126 per month in Minnesota, making it the most expensive state in the region.
• State Farm, Westfield, and West Bend Mutual offer the lowest average rates statewide.
• Driving without insurance in Minnesota can result in fines and a license and registration suspension.

Minnesota’s Cheapest Car Insurance Companies

Even though car insurance averages $126 per month in Minnesota, savvy drivers can find ways to save.

The following table shows Minnesota’s most affordable car insurance companies.

State Farm offers the cheapest average rates by a pretty substantial margin.

Throughout this article, we’ll show you the cheapest insurance companies for several rating factors, including coverage levels, age, and driving record.

Compare.com’s Best Minnesota Insurance Companies of 2023

It’s important to remember that there’s no single best car insurance company for everyone. Your ideal choice depends on your unique needs, driving history, and specific circumstances.

While compiling our list, we considered a combination of factors, including average rates in Minnesota, available discounts, customer ratings and reviews, and coverages offered.

State Farm: Best for Minnesota teen drivers

Average monthly quote: $70 per month

Compare.com rating: 4.3 out of 5

Trustpilot rating: 1.7 out of 5

BBB rating: A-

Pros:

• Several discounts available for teen drivers
• 24/4 claims service and a large repair network
• Plenty of available discounts

Cons:

• Below-average customer ratings
• Can’t buy policies online
• Limited coverage options

Because it’s the largest insurance company in the U.S., you can rest easy knowing State Farm has the financial resources to pay claims. Plus, it offers several discounts to help young drivers and their families save money, including discounts for taking a defensive driving course and maintaining good grades.

State Farm isn’t the cheapest option for teen drivers with liability-only coverage, but it’s the most affordable option for full coverage, according to Compare.com data.

Westfield Insurance: Best for budget-minded Minnesotans

Average monthly quote: $81 per month

Compare.com rating: Not rated

Trustpilot rating: 3.2 out of 5

BBB rating: A+

Pros:

• Lowest average rates for liability-only coverage
• Service from a local agent may appeal to some customers
• Options to insure RVs and motorcycles

Cons:

• Quotes not available online
• Adding a teen driver could cause your rates to skyrocket
• No discount information available on the website

Westfield Insurance isn’t a very recognizable name in car insurance. In fact, it only provides personal lines insurance — such as auto and homeowners insurance — in 10 states. Fortunately, Minnesota is one of them because Westfield Insurance offers the lowest average premiums for liability-only coverage at the state minimums and drivers with a clean record.

Despite the company’s limited range, it offers all the basic auto coverage drivers need, plus add-ons like roadside assistance and gap coverage.

Auto-Owners Insurance: Best for classic car owners

Average monthly quote: $91 per month

Compare.com rating: Not rated

Trustpilot rating: 2.3 out of 5

BBB rating: A+

Pros:

• Home, auto, life, and business insurance available
• One deductible for home and auto bundling claims
• Numerous discounts available

Cons:

• Quotes not available online
• No 24/7 claims service
• Specialty coverages for classic cars may be pricey

Auto-Owners sells car, home, life, and commercial insurance in 26 states. In addition to traditional cars, trucks, motorcycles, ATVs, off-road vehicles, motor homes, RVs, boats, and trailers, the company offers a classic car insurance program — something many insurance companies shy away from.

In some cases, Auto-Owners offers classic car policies on an “agreed value” basis. This means if your car is totaled, Auto-Owners will pay the value agreed on at the start of the policy. Most car insurance policies pay claims based on actual cash value (ACV), meaning how much you could reasonably expect to get for the vehicle if you sold it today.

Agreed-value policies can provide some peace of mind that you won’t have to haggle with your insurance company over your vehicle’s value if you file a claim.

The Average Cost of Minnesota Car Insurance

Minnesota drivers pay an average of $126 per month for car insurance. The table below shows Minnesota’s state rank and average compared to other states in the region.

Minnesota’s position as the most expensive state in the region for car insurance is partially due to population density. Minnesota — particularly the Twin Cities area — has a higher population and traffic density than Iowa, North Dakota, and South Dakota. More vehicles on the road increase the likelihood of accidents, leading to higher insurance premiums.

Let’s explore how much Minnesota drivers pay for liability-only insurance policies.

Cheapest Car Insurance Rates for State-Minimum Insurance: Westfield

The level of coverage you choose plays a big role in your car insurance rates. Opting for liability-only coverage at the state-minimum limits is the cheapest policy available. This basic coverage protects other drivers and their property if you’re at fault in an accident but doesn’t cover damage to your own vehicle.

With that in mind, let’s take a look at which companies offer the most affordable state-minimum insurance in Minnesota.

Westfield offers the cheapest liability-only policies in Minnesota, on average. However, North Star Mutual and State Farm are a very close second and third. That’s why it’s important to shop around to find the best rates.

Next, we’ll look at the cheapest insurers for full-coverage insurance.

Cheapest Car Insurance Rates for Full-Coverage Insurance: State Farm

Full-coverage car insurance offers protection beyond bodily injury and property damage liability. It includes collision and comprehensive, which cover damage to your vehicle resulting from collisions and non-collision incidents, such as theft, vandalism, or falling tree limbs.

Full coverage is more expensive due to its broader protection, but it’s essential if you have a newer or high-value vehicle. Let’s take a look at the five cheapest companies for full-coverage insurance in Minnesota.

State Farm is the winner in this category, with an average monthly premium — $93 per month — significantly cheaper than its closest competitors.

Compare Minnesota Auto Insurance Rates by Age

Age is one of the most important rating factors in setting car insurance rates because it provides clues to your driving experience and risk potential.

In the following sections, we’ll show how age affects car insurance rates for different age groups and provide tips to help you find affordable insurance.

Cheapest car insurance for Minnesota teens: Auto-Owners

Generally, insurance companies view young drivers as a higher risk because of their lack of driving experience, which translates to higher rates of accidents, according to the Insurance Information Institute (Triple-I).

As drivers age and gain more experience, their rates tend to decrease — usually around age 25 — assuming they maintain a clean driving record.

The table below shows the cheapest insurance companies for Minnesota teens, based on 18-year-old drivers and sorted by liability rates.

Auto-Owners is the cheapest for liability-only coverage, but State Farm offers the most affordable premiums for full-coverage car insurance for teen drivers in Minnesota.

Next, we’ll see how senior driver rates compare.

Cheapest car insurance for Minnesota seniors: North Star Mutual

As senior drivers approach retirement age, they often benefit from some of the cheapest car insurance rates available due to their decades of driving experience and safer driving habits.

To illustrate the affordability of car insurance for seniors in Minnesota, here’s a table showing the cheapest car insurance options in the state for 65-year-old drivers.

While rates are pretty comparable across the top five insurers for liability-only coverage, State Farm is the clear winner for full-coverage car insurance. Its average monthly premiums for seniors are significantly cheaper than the competition. That said, North Star Mutual has slightly cheaper rates for seniors looking for basic liability coverage.

Compare Minnesota Auto Insurance Rates by Driving Record

Your driving record is the most crucial rating factor in your car insurance rates, as it reflects your behavior and responsibility on the road. Insurance companies assess your history of accidents, traffic violations, and driving under the influence (DUI) convictions to gauge your risk level.

In the upcoming sections, we’ll look at how different aspects of a driving record can affect insurance rates.

Cheapest car insurance for good drivers in Minnesota: Westfield

A clean driving record is one free of at-fault accidents and tickets. A clean record typically results in lower car insurance premiums and indicates a lower risk of future claims.

Here are Minnesota’s cheapest car insurance companies for drivers with no accidents or tickets on their record.

Westfield is the cheapest for liability coverage for Minnesota drivers with clean records, with an average rate of $46 per month, but all the companies are relatively comparable for liability-only policies. North Star Mutual and State Farm’s liability-only rates are a couple of dollars more, but State Farm is the clear winner for full coverage in this category.

Next, we’ll look at which insurers have the cheapest car insurance options for drivers after a speeding ticket.

Cheapest car insurance in Minnesota after a ticket: North Star Mutual

Getting a traffic ticket can have a noticeable effect on your car insurance rates. It signals to car insurance companies that you’re more at risk of accidents and claims. Car insurance rates go up by an average of 37% after just one ticket, according to Compare.com data.

The following table shows the five cheapest car insurance companies for Minnesota drivers with one speeding ticket on their record.

North Star Mutual is the cheapest company in Minnesota for liability-only coverage, with average rates as low as $47 per month. But State Farm takes the top spot again for full-coverage car insurance.

Let’s see how car accidents influence auto insurance rates.

Cheapest car insurance in Minnesota after an accident: Western National

Getting in an at-fault accident can also lead to an increase in your car insurance rates. When a driver is responsible for an accident, it often results in costly claims for vehicle repairs and medical expenses.

Car insurance rates increase by an average of 44% after one at-fault accident, according to Compare.com data.

The table below shows Minnesota’s cheapest car insurance companies for drivers with one at-fault accident on their record.

Western National is the cheapest for liability-only policies in Minnesota, with Chubb not far behind. But State Farm is also the cheapest for full-coverage car insurance in this category.

Now, we’ll look at the cheapest policies for drivers with a DUI.

Cheapest car insurance in Minnesota after a DWI: State Farm

A DWI conviction is one of the most serious offenses in terms of its effect on your car insurance costs. Auto insurance rates skyrocket by an average of 94% following a DUI or DWI, according to data from Compare.com.

In Minnesota, the penalties for a DWI can include jail or prison time, fines, and losing your driving privileges. Potential penalties increase for subsequent offenses.

The following table shows Minnesota’s cheapest car insurance options for drivers with one DWI conviction.

State Farm offers the cheapest average rates for both liability-only and full coverage in this category. Minnesota drivers with a DWI can save between $30 and $70 per month on full coverage with the insurer.

5 Ways to Get Cheap Car Insurance in Minnesota

Here are five tips for lowering car insurance premiums from Jeffrey L. Brewer, department vice president of public affairs at the American Property Casualty Insurance Association.

• Contact your insurance company or agent for a policy review. Your insurer may be able to suggest coverage changes that can lower your premium.
• Increase your deductible. Increasing your deductible from $200 to $1,000 could reduce comprehensive and collision premiums by up to 40%, according to Triple I.
• Consider usage-based insurance. If you don’t drive often, consider usage-based insurance, which customizes your car insurance rates based on your driving habits.
• Ask your insurer about discount programs. Many insurance companies offer discounts for bundling policies or paying your premium in full.
• Shop around. Regularly compare quotes from multiple insurance companies to see if there’s a better match for coverage and cost.

Minnesota Auto Insurance Requirements

Minnesota is a “no-fault” state, meaning drivers injured in a car accident receive compensation from their own insurance policy for any injuries, regardless of who was at fault. Minnesota requires all owners of vehicles licensed in the state to have coverage that meets or exceeds the state minimum limits:

• Liability: $30,000 per person, $60,000 per accident in bodily injury liability, and $10,000 in property damage liability
• Personal injury protection (PIP): $40,000 per person, per accident
• Uninsured/underinsured motorist coverage: $25,000 per person, $50,000 per accident

Penalties for driving without auto insurance in Minnesota

Driving without insurance in Minnesota is a serious offense that can lead to penalties such as:

• Revoked driver’s license
• Suspended car registration
• Fines of $200 or more

Penalties can increase for subsequent offenses.

SR-22 auto insurance in Minnesota

An SR-22 is a form many states require after a driver gets a DWI or is caught driving without insurance. It proves the driver has car insurance meeting the minimum limits and confirms the insurance company will notify the state if the driver’s coverage lapses for any reason.

Minnesota doesn’t require an SR-22 but requires drivers with serious violations to submit an insurance certification with the Minnesota Driver and Vehicle Services (DVS). The form must be completed by an insurance company representative, not the policyholder or their agent.

Personal injury protection and no-fault insurance in Minnesota

Because Minnesota is a no-fault state for car insurance, it requires all drivers to purchase PIP coverage of at least $40,000 per person and per accident.

PIP coverage pays for medical and funeral expenses and lost wages if you or a member of your household are in an auto accident, regardless of who was at fault.

Minnesota Auto Insurance FAQs

Here are answers to some frequently asked questions about car insurance in Minnesota.

Who is the cheapest auto insurance company in Minnesota?

State Farm has the lowest average rates, at $70 per month, for car insurance in Minnesota. But Westfield, West Bend Mutual, and Auto-Owners Insurance also offer competitive rates.

How much is car insurance in Minnesota?

Statewide, car insurance averages $126 per month ($1,512 per year) in Minnesota. But your rates will vary depending on your driving record, age, ZIP code, and other rating factors.

How much car insurance is required in Minnesota?

Minnesota law requires drivers to have liability coverage, PIP, and uninsured/underinsured motorists coverage. Minimum limits are $30,000 per person and $60,000 per accident for bodily injury liability, $10,000 for property damage liability, and $40,000 for PIP.

Drivers must also have $25,000 per person and $50,000 per accident for uninsured/underinsured motorist coverage.

What happens if you get caught driving without insurance in Minnesota?

If caught driving without insurance in Minnesota, you can face fines of $200 or more and suspension of your license and registration. And you can be required to file an insurance certification with the state. Repeated offenses can increase penalties, including higher fines and longer license suspension periods.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources

1. WiseVoter, “Population Density by State,” accessed November 15, 2023.
2. Insurance Information Institute, “Auto insurance for teen drivers,” accessed November 15, 2023.
3. Minnesota Department of Public Safety, “DWI Consequences,” accessed November 15, 2023.
4. Insurance Information Institute, “Nine ways to lower your auto insurance costs,” accessed November 15, 2023.
5. Minnesota Commerce Department, “Auto Insurance Guide,” accessed November 15, 2023.
6. Minnesota Department of Public Safety, “Insurance Certification,” accessed November 15, 2023.