Average Cost of Car Insurance in Minnesota for 2024

Updated Nov. 29, 2023
Fact checked
AAA is generally the cheapest car insurance in Minnesota for full coverage policies.

Compare car insurance rates in your area!

See if you qualify for a lower rate in less than 2 minutes

By clicking the button below I understand and agree that this site uses site visit recording technology (provided by Trusted Form, Jornaya, and Microsoft Clarity) Privacy Policy

Check Rates


We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

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 $1,391, compared to the national average of $1,582.

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.

In this article

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 $3,908 per year on average.

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 AAA
Avg. for young drivers Avg. cost for seniors Avg. for high-risk drivers
$3,908/year $1,402/year $2,046/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.

Of the providers compared below, 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
Allstate $1,908/year $973/year
Farmers $1,748/year $910/year
GEICO $1,500/year $636/year
Progressive $1,141/year $1,081/year
State Farm $1,022/year $476/year
Travelers $1,528/year $744/year
USAA $1,044/year $384/year

Get rates, offers & more from top rated insurance providers!

By clicking the button below I understand and agree that this site uses site visit recording technology (provided by Trusted Form, Jornaya, and Microsoft Clarity) Privacy Policy

Check Rates

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) $3,252/year
Average (650-699) $1,940/year
Good (700-749) $1,551/year
Excellent (750+) $1,236/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 can increase your premiums by $1,703. And an at-fault accident can increase your yearly premiums by $976.

Violation Avg. annual premium before violation* Avg. annual premium after violation Avg. cost increase
At-fault accident $1,391/year $2,367/year $976
DUI $1,391/year $3,094/year $1,703
Speeding ticket $1,391/year $1,994/year $603

*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 who 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
Brooklyn Park $1,818/year
Bloomington $1,656/year
Woodbury $1,616/year
Saint Cloud $1,549/year
Rochester $1,394/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. 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 $1,391, compared to a national average of compared to the national average of $1,582.

How much is car insurance per year in MN?

The average cost of car insurance in Minnesota is $1,391 per year for full coverage insurance. State-minimum coverage averages $698 per year.

  • You could save up to $500 with some companies
  • Compare dozens of providers in under 5 minutes
  • Fast, free and easy way to shop for insurance
  • Quickly find the perfect rate for you

Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.