INSURANCE - CAR INSURANCE

Best Car Insurance in Minnesota for 2024

Updated Jan. 10, 2024
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State Farm has the lowest cost full coverage insurance in Minnesota.

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Minnesota is the Land of 10,000 Lakes — 11,842 to be precise — and famous sites like the Mall of America, Paul Bunyan Land, and the North Shore Scenic Byway. With so much to do, a road trip through The North Star State is an adventure. Thankfully, car insurance in Minnesota is relatively affordable compared to other states, making road trips more accessible than ever.

In this article

Key takeaways

  • The best car insurance in Minnesota by customer satisfaction is USAA, which costs an average of $1,044 a year for comprehensive coverage.
  • Drivers with a clean driving record pay an average of $115 monthly in Minnesota.
  • Since Minnesota is a no-fault state, drivers’ insurance obligations are more comprehensive than in some states.

Best car insurance companies in Minnesota

Minnesota drivers pay an average of $1,391 annually for full coverage car insurance and $698 for the state’s minimum coverage. State Farm had the cheapest average full coverage, but USAA offered the best prices on minimum liability insurance. Allstate had the highest annual full coverage, but Progressive was the most expensive minimum insurance.

Provider J.D. Power customer satisfaction rating Estimated annual full coverage Estimated annual minimum liability coverage
USAA 890/1,000 $1,044/year $384/year
American Family 837/1,000 $1,215/year $630/year
State Farm 833/1,000 $1,022/year $476/year
Auto-Owners 829/1,000 $1,407/year $420/year
GEICO 819/1,000 $1,500/year $636/year
Allstate 806/1,000 $1,908/year $973/year
Progressive 803/1,000 $1,141/year $1,081/year

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USAA: Highest customer satisfaction

USAA earned the highest customer satisfaction rating in Minnesota. While it has the cheapest minimum coverage, it is not the state’s most affordable full coverage provider. USAA offers a good mix of standard coverages if you qualify, but policies are only available to current and former military members and their families.

Pros
  •  USAA had the highest customer satisfaction rating in Minnesota
  •  It had the cheapest minimum coverage, an average of $384 annually
Cons
  •  USAA policies are not available to everyone
  •  You may find more policy options with a competitor

Get a quote now | USAA review

State Farm: Most affordable coverage

State Farm is the most affordable full coverage car insurance in Minnesota. Customers pay an average of $1,022 yearly for full coverage, but its minimum coverage costs an average of $476 annually, only the third-lowest. State Farm also earned the third-highest customer satisfaction score on our list of the best car insurance.

Pros
  •  State Farm had the lowest cost full coverage car insurance in Minnesota
  •  It has an extensive list of agents throughout the state
Cons
  •  State Farm earned the third-highest customer satisfaction rating in Minnesota
  •  You’ll likely find lower minimum coverage costs with some competitors

Get a quote now | State Farm review

Auto-Owners: Best budget pick

Auto-Owners is a mutual insurance company providing auto, life, and property policies. Its insurance is available in 26 states, including Minnesota, and Auto-Owners only provides policies through independent agents. Although its full coverage is more expensive, averaging $1,407 a year, it had the cheapest minimum coverage available to everyone in Minnesota, averaging $420 annually.

Pros
  •  Auto-Owners had the most affordable minimum coverage on our list
  •  It has multiple options, including gap policies
Cons
  •  It earned only average customer satisfaction scores in Minnesota
  •  You may find more discount options with competitors

Get a quote now | Auto-Owners review

Allstate: Best for coverage options

Allstate’s full coverage insurance is the most expensive in Minnesota, costing a yearly average of $1,908. It also had the second-highest price for minimum car insurance, averaging $973 a year. Despite its higher cost, its coverage options and extensive discounts, like a vanishing deductible, could make it a good option for some people.

Pros
  •  Allstate has many policy options, including accident forgiveness and gap coverage
  •  It has several agents spread across the state
Cons
  •  You’ll likely find lower prices with a competitor
  •  It had low customer service ratings in Minnesota

Get a quote now | Allstate review

Progressive: Best for high-risk drivers

High-risk drivers in Minnesota pay an average of $2,046 yearly for car insurance. Drivers with DUIs, multiple speeding tickets, or at-fault accidents may want to look at Progressive since it offers high-risk policies and will file SR-22 forms. It also had the third-lowest full coverage price in Minnesota, averaging $1,141 annually.

Pros
  •  Progressive had relatively low average costs for full coverage insurance in Minnesota
  •  It offers policies to high-risk drivers, though you may have to pay higher rates
Cons
  •  Progressive earned the lowest customer satisfaction rating on our Minnesota list
  •  You may find lower-cost options for minimum coverage insurance with a competitor

Get a quote now | Progressive review

Minnesota auto insurance requirements

Just like other states in the country, Minnesota requires drivers to carry insurance. However, Minnesota is a no-fault state, so drivers must have more extensive coverage than in other states.

To drive legally in Minnesota, you must have:

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

How to choose a car insurance provider in Minnesota

If you’re researching a new car insurance provider, consider the following tips to ensure you get the right coverage at the right price.

  • Check financial stability: Before starting a policy, check the company’s financial stability on a website like Standard & Poor’s or AM Best. It’s also wise to check with the Minnesota Department of Commerce or the National Association of Insurance Commissioners (NAIC) to confirm a company is licensed in Minnesota.
  • Compare quotes: Get quotes from at least three companies and compare them to ensure policy amounts, coverage options, and discounts are similar. Make sure the policy types and amounts match your current insurance for an accurate comparison.
  • Check reviews: Ask friends and family for recommendations and check review websites like the Better Business Bureau to see what existing customers say.

How much does car insurance cost in Minnesota?

The average cost of car insurance in Minnesota is $1,391 a year for full coverage, compared to the national average of $1,582. Minimum coverage in Minnesota costs an average of $698 annually.

Drivers in Minneapolis are likely to pay the most ($1,844 per year for full coverage), well above the state average. Drivers in Rochester are likely to pay the least, an average of $1,394 yearly.

Minnesota car insurance rates by city

There are several factors that can impact the cost of your insurance, such as your age, driving history, and credit score. Additionally, the population of your city can also play a role in higher rates, as more people on the road tend to lead to more accidents. 

For example, Brooklyn Park, with a population of 84,526, is the sixth-largest community in Minnesota, according to NeighborhoodScout. Residents pay an average of $1,818 yearly for full coverage car insurance. On the other hand, Saint Cloud has a population of 68,818 (making it the 12th largest community in Minnesota), and residents spend an average of $1,758 annually on full coverage.

City Avg. annual full-coverage premium
Minneapolis$1,844/year
Brooklyn Park $1,818/year
Bloomington $1,656/year
Woodbury $1,616/year
Saint Cloud $1,549/year
Rochester $1,394/year

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the best 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 Minnesota

What are the minimum car insurance coverage requirements in Minnesota?

Because Minnesota is a no-fault state, the insurance requirements for drivers are more extensive than in other areas. Drivers must maintain:

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

How much does car insurance cost in Minnesota?

Car insurance in Minnesota costs an average of $1,391 annually for full coverage and $698 per year for minimum coverage.

Which car insurance companies cover Minnesota?

Many national car insurance companies cover Minnesota, including State Farm, USAA, Allstate, Progressive, American Family, and GEICO.

What is the cheapest car insurance company in Minnesota?

State Farm is the cheapest car insurance in Minnesota for full coverage, averaging $1,022 yearly. USAA has the most affordable minimum coverage, averaging $384 a year. 

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Author Details

Kate Daugherty Kate Daugherty is a professional writer with a passion for providing others the head start they deserve on their financial journeys. Largely self-taught, Kate relied on books, blogs, and trial-and-error to learn how to budget and save for the future, all while working to pay back about $15,000 in student loans.