Average Cost of Car Insurance in Minnesota for 2023

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State Farm is generally the cheapest car insurance in Minnesota for full coverage policies.
Last updated May 25, 2023 | By Kat Tretina Edited By Gabriela Walsh

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From visiting the famous lakes to shopping at the Mall of America, there’s plenty to do in Minnesota. And drivers within the North Star State can take advantage of lower-than-average premiums. The average cost of car insurance in Minnesota is about $138 less than the national average.

Minnesota requires all drivers to have coverage, and because it’s a no-fault state, you may need to purchase additional insurance. How much your policy will cost depends on several factors, including your location, car make and model, age, and credit history.

Key takeaways:

  • The average cost of car insurance in Minnesota is $1,391 per year for full coverage policies.
  • State-minimum coverage costs an average of $698 per year in Minnesota.
  • Insurance for teen drivers costs $325.67 per month on average.
In this article

How much does car insurance cost in Minnesota?

In Minnesota, full coverage policies that include liability, collision, and comprehensive insurance average $1,391 per year, about 9% lower than the national average of $1,529.  

Insurance policies that meet state-minimum coverage requirements are even cheaper, averaging just $698 per year.

One of the reasons premiums are relatively inexpensive is because Minnesota has a lower-than-average population density. With fewer people per square mile, there is less chance of getting into an accident or becoming the victim of theft.

Avg. cost for full coverage Avg. cost for minimum coverage Cheapest insurance provider
$1,391/year $698/year State Farm
Avg. for young drivers Avg. cost for seniors Avg. for high-risk drivers
$3,908/year $1,402/year $1,814/year

Average cost of car insurance in Minnesota by provider

Rates and coverage options vary by company, so shopping around is wise. In Minnesota, you can choose from some of the largest insurance companies in the country, such as State Farm, Progressive, and Allstate.

State Farm has the lowest average premiums for full coverage policies, while USAA was the cheapest for state-minimum coverage.

Provider Full coverage Minimum liability coverage
Travelers $1,528/year
Allstate $1,908/year $973/year
Progressive $1,141/year $1,081/year
State Farm $1,022/year $476/year
USAA $1,044/year $384/year
GEICO $1,500/year $636/year
Farmers $1,748/year $910/year

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How does credit score affect car insurance rates in Minnesota?

Car insurers frequently use drivers’ credit histories to determine premiums. Minnesota drivers with poor credit can end up paying significantly more for coverage. We found that those with poor credit — meaning a score under 650 — paid more than double the premiums of someone with good credit.

Improving your credit by reducing your credit card balances, making all your payments on time, and limiting new credit inquiries can help you lower your car insurance premiums over time.

Credit health Avg. annual premium
Poor (550-649) $3,437/year
Average (650-699) $2,091/year
Good (700-749) $1,633/year
Excellent (750+) $1,316/year

Average car insurance rates for high-risk drivers in Minnesota

High-risk drivers who are more likely to submit insurance claims will pay much more for car insurance than individuals with clean driving records. If you have a driving under the influence (DUI) conviction, your premiums will generally cost more than double the previous rate. And an at-fault accident can increase your monthly premiums by about $81.83.

Violation Avg. annual premium before violation* Avg. annual premium after violation Avg. cost increase
At-fault accident $1,391/year $2,373/year $982
DUI $1,391/year $3,059/year $1,668
Speeding ticket $1,391/year $1,989/year $598

*Assumes clean driving record with good credit

How does age affect car insurance rates in Minnesota?

It may sound unfair, but teens pay much more for car insurance than older drivers in most states. But that’s because teens are statistically more likely to be involved in serious accidents, so insurers charge higher rates to offset the risk.

If you are 18 and shopping for car insurance in Minnesota, be aware that the average premium for your age is $4,093 per year. But rates decrease as you age; drivers in their 60s average just $1,372 per year.

Age Avg. annual premium
18 $4,093/year
25 $1,813/year
30 $1,580/year
40 $1,475/year
60 $1,372/year

Minnesota car insurance rates by city

If you live in a densely-populated area where car theft or accidents are common, you will pay more for car insurance than drivers that live in rural or suburban areas.

That fact is especially evident in Minneapolis. At $1,844, Minneapolis has the highest average premiums in the state. That higher rate is because of its crime rating; NeighborhoodScout issued the city a one on its crime rating index, meaning 99% of cities in the US are safer than Minneapolis.

City Avg. annual full-coverage premium
Minneapolis $1,844/year
Saint Paul $1,746/year
Rochester $1,394/year
Bloomington $1,656/year
Brooklyn Park $1,818/year
Woodbury $1,616/year

MN’s minimum car insurance requirements

Minnesota is a no-fault state, so drivers are responsible for their medical bills and related expenses. As a result, Minnesota’s insurance requirements are different from other states. Drivers in Minnesota must meet the following coverage minimums:

  • $40,000 per person per accident in personal injury protection (PIP)
  • $30,000 in bodily injury protection for one person
  • $60,000 in bodily injury protection for two or more people
  • $10,000 in property damage coverage
  • $25,000 in uninsured/underinsured motorist protection for one person
  • $50,000 in uninsured/underinsured motorist protection for two or more people

According to the Insurance Research Council, 9.9% of drivers in Minnesota are uninsured, so having uninsured/underinsured coverage is essential. And depending on your finances, you may want to purchase coverage above and beyond the state minimums.

How to save money on car insurance in Minnesota

Car insurance in Minnesota is relatively inexpensive, but there are ways to lower your premiums even more:

  • Complete a mature driver course: If you are 55 or older, you can take an accident prevention course approved by the state. Once you successfully complete the course, you may qualify for a discount on your insurance policy.
  • Increase your deductible: If your deductible is low, increasing it can lower your monthly or annual premiums.
  • Ask about discounts: You may qualify for discounts if you bundle your coverage with other insurance products, install an anti-theft device, or insure multiple vehicles. Contact your agent to see if you are eligible for any discounts.
  • Shop around: If you’ve gotten coverage through one company for several years, it may be worthwhile to shop around. Requesting quotes from the best car insurance companies may allow you to get the same coverage at a lower rate.


Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

FAQs about car insurance costs in MN

Is car insurance expensive in MN?

Compared to the national average premiums, car insurance in Minnesota is relatively inexpensive. Full coverage policies in the state are $138 less than the national average, and state-minimum coverage is $698 per year.

How much is car insurance per month in MN?

The average cost of car insurance in Minnesota is $115.92 per month for full coverage insurance. State-minimum policies average $58.17 per month.

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Author Details

Kat Tretina Kat Tretina is a personal finance writer and certified financial counselor based in Orlando, Florida. Dedicated to helping people build a solid financial foundation, she's written about insurance products — including life insurance, pet insurance, and car insurance — for major publications. Her work has been published by Money.com, Business Insider, Forbes Advisor, and more.