Cheap Car Insurance Companies In Minnesota

The average semiannual cost of car insurance in the state of Minnesota is $728.45. An insured premiums are influenced by more variables than purely their place of residence. Car insurance underwriters calculate auto insurance rates after assessing a range of criteria such as the policyholder’s age, driving record, marital status, and credit rating. We examined typical car insurance costs in Minnesota across each of the predominant rating factors. We aim to provide consumers insight to identify a car insurance policy that meets their needs and budget.

*Data Methodology – Updated 3/3/2024

The Minnesota car insurance rates are based on a 35-year-old male with the most popular car (Honda Accord) living in MN. The Quote is for full coverage with comprehensive at $500 deductible and collision at $500 deductible.

Minnesota Minimum Liability Coverage

Minnesota has a minimum liability insurance requirement to make sure all drivers carry enough insurance to cover damages in the event of an accident. Here is a breakdown of Minnesota’s minimum liability coverage requirements:

• Bodily Injury Liability: $30,000 per person with a maximum of $60,000 per accident. This covers injuries and damages to other people in an accident you cause.
• Property Damage Liability: $10,000. This covers damages to other people’s property, such as vehicles, that you cause in an accident.
• Personal Injury Protection (PIP): $40,000. PIP covers injuries to yourself and your passengers, regardless of fault. It covers medical expenses, lost wages, and funeral costs.
• Uninsured/Underinsured Motorist: $25,000 per person/$50,000 per accident in property damages. This covers injuries to you and your passengers if you are in an accident caused by an uninsured or underinsured driver.

Penalties for Driving Without Insurance in Minnesota

If you are caught driving without car insurance in Minnesota, you will likely face significant penalties. First, you will receive a citation for an uninsured vehicle violation. This is a misdemeanor subject to fines and other legal penalties.

The fine for a first offense of driving without insurance in Minnesota is $200. However, courts may increase the fine up to $1,000 for repeat offenses. You will also have to pay a $25 surcharge to the Minnesota Automobile Insurance Plan. Additionally, your driver’s license will be suspended for 30 days on a first offense and for 90 days on subsequent offenses.

There are also other costs associated with driving uninsured. Your vehicle registration will be revoked until you show proof of insurance. You will have to pay a $75 reinstatement fee to get your registration back. You may also have to pay an uninsured motorist fee when you get new insurance, which can be hundreds of dollars. Your insurance rates will likely increase significantly for several years after any lapse in coverage.

Driving without insurance is a serious violation in Minnesota. In addition to fines, license suspension and registration revocation, you also risk having your vehicle impounded. You could be charged with a misdemeanor crime and face jail time for repeat offenses.

Auto Insurance Rates in Minnesota

Auto insurance rates in Minnesota can vary widely depending on several factors. Some of the biggest factors that impact your auto insurance rates in Minnesota are:

• Driving record: Your driving history, including any violations, tickets, and accidents, will have a major impact on your rates. The more violations you have, the higher your rates will likely be.
• Credit score: Insurers often use your credit score as an indicator of risk. Generally speaking, the higher your credit score, the lower your insurance rates will be.
• Age: Younger drivers, especially those under 25, tend to pay higher rates due to their inexperience and higher risk of accidents. Rates typically decrease as you get older and become a more experienced driver.
• Vehicle: The make, model, year, safety features, and value of your vehicle all impact your rates. Newer vehicles with more safety features tend to result in lower insurance rates. Sports cars and high-performance vehicles usually cost more to insure.
• Location: Where you live in Minnesota affects your rates. Urban areas tend to have higher insurance rates due to higher frequency of claims from traffic and theft.
• Coverage limits: The higher your liability and property damage coverage limits, the higher your premiums will likely be. However, higher limits provide more financial protection in the event of an accident or claim.

Low Cost Car Insurance Programs and Discounts in Minnesota

Car insurance is required by law in Minnesota, but the cost of coverage can really add up. The good news is there are several ways you can lower your rates and save money on auto insurance. Here are some of the best options available:

• Good student discount. Many insurers offer a good student discount for teenagers and students under 25 who maintain at least a B average. This can save you up to 20% on your premiums.
• Multi-policy discount. Bundling your auto and homeowners insurance with the same company often qualifies you for a multi-policy discount of 5% to 10%.
• Low-mileage discount. If you drive less than 7,500 to 10,000 miles per year, you likely qualify for a low-mileage discount of up to 15%.
• Anti-theft devices. Having an anti-theft device like LoJack installed in your vehicle can shave up to 10% off your rates.
• Defensive driving course. Completing a defensive driving or accident prevention course could earn you a discount of up to 10%. Some insurers will even reimburse you for the cost of the course.
• Group membership discount. Being a member of certain groups and associations can make you eligible for insurance discounts. This includes groups like AAA, AARP, alumni associations, trade unions and more.
• Paying in full. Some insurers offer a discount if you pay your entire premium at once instead of making monthly payments. This can save you around 2% to 5%.

Minnesota Car Insurance Statistics

Minnesota has some interesting statistics when it comes to car insurance. The state has a relatively low average insurance premium compared to other states. In 2020, the average annual car insurance premium in Minnesota was $705. This is lower than the national average of $935 per year.

There are a few reasons why car insurance costs tend to be lower in Minnesota. For one, the state has a lower rate of uninsured drivers compared to the national average. In 2019, only 2.7% of Minnesota drivers were uninsured, compared to 8.6% nationwide. This means fewer uninsured drivers on the roads, which helps keep insurance costs down for everyone.

Minnesota also has a lower frequency of claims compared to many other states. This is likely due to the state’s relatively mild weather conditions, with fewer extreme weather events that can lead to accidents and claims. The rate of traffic fatalities is also lower in Minnesota than the national average, with 8.1 fatalities per 100,000 people compared to the U.S. average of 11 fatalities per 100,000 people.

Minnesota drivers also tend to have better driving records overall. The state ranks 33rd in the country for the percentage of drivers with a history of driving under the influence. All of these factors help contribute to lower overall claims costs for insurance companies and lower premiums for drivers.

The 10 Largest Minnesota Car Insurance Companies

Minnesota has a competitive car insurance market with many options for drivers. Here are the 10 largest car insurance companies in Minnesota based on the volume of car insurance premiums written in the state:

1. State Farm – As the largest auto insurer in the U.S., State Farm also tops the list in Minnesota. It offers a wide range of coverage options to fit different budgets and needs.
2. Progressive – Progressive is known for its innovative policies and usage-based insurance programs. It has a large customer base in Minnesota.
3. Farmers Insurance – Farmers Insurance has built a strong reputation in Minnesota through its network of local agents offering personalized service.
4. Allstate – Allstate has been protecting Minnesota drivers for decades. It offers many discounts and has a good claims satisfaction rating.
5. American Family Insurance – A Midwest insurer, American Family has been serving Minnesota customers for over 80 years. It is known for its claims expertise.
6. Liberty Mutual – Liberty Mutual provides auto coverage tailored to individual customer needs with options like rideshare insurance.
7. Auto-Owners Insurance (AO) – AO has been insuring Minnesotans for over 100 years. It is known for affordable rates and high customer satisfaction.
8. Minnesota Farm Bureau – As part of the Farm Bureau Insurance Group, this company specializes in coverage for rural drivers.
9. Nationwide – Nationwide has a large agent network in Minnesota to offer local service and coverage options.
10. USAA – USAA provides insurance products and services to military members, veterans, and their families.