Car insurance in Minnesota costs $58 per month or $698 per year for minimum coverage, on average. The cheapest car insurance companies in Minnesota are Westfield, USAA, and Auto-Owners, and getting quotes from several companies can help you find the best deal.
The average cost of car insurance in Minnesota is 4% higher than the national average auto insurance premium. There are several factors that affect how much you’ll pay for car insurance in Minnesota, including your driving record, age and location, the amount of coverage you purchase, and the insurance company you buy it from.
Average Cost of Car Insurance in Minnesota by Category
After an at-fault accident:$189 per month
Driver with poor credit: $135 per month
Teen driver:$194 per month
After a DUI: $142 per month
Average Cost of Car Insurance in Minnesota by Company
Note: Rates are an approximation based on a driver in Minnesota with minimum coverage and a clean driving record. Actual rates will vary.
How to Lower the Cost of Car Insurance in Minnesota
Shop around and compare quotes. We recommend comparing quotes from at least three different insurance companies to make sure you are getting the best rate.
Choose a higher deductible. Your deductible is the amount you have to pay out of pocket before your insurance kicks in. Choosing a higher deductible can lower your premiums but means you will have to pay more out-of-pocket when you file a claim.
Consider lowering your coverage. Consider purchasing only the minimum amount of coverage required by your state, rather than purchasing higher limits or a full coverage policy.
Look for discounts you may be eligible for. For instance, most insurance companies offer a good-driver discount for customers with a clean driving record, a good-student discount, or a discount for paying your premiums in full up front.
Here’s How Much Car Insurance Drivers Need in Minnesota:
Minimum Coverage Limit
Bodily Injury Liability Coverage (per person)
Bodily Injury Liability Coverage (per accident)
Property Damage Liability
$25,000 per person ($50,000 per accident)
$25,000 per person ($50,000 per accident)
Personal Injury Protection
If you lease or finance your car, you may be required to carry coverage types that are not mandatory under Minnesota law. Lenders usually require comprehensive and collision insurance. Collision insurance covers repairs to your car when you hit another car or object. If the damage to your vehicle was caused by something other than a collision—like a natural disaster, vandalism, falling objects, or animals—it is most likely covered by comprehensive insurance. Lenders may also require gap insurance, which covers the difference between what you owe on your loan or lease and what the vehicle was worth if it gets stolen or totaled.
Car insurance in Minnesota is expensive because it is a no-fault state. In Minnesota, you can expect to pay approximately $3,256 per year for full coverage car insurance or $1,185 per year for minimum coverage. Car insurance in Minnesota is about the same as the national average, which is around $2,000 annually for full coverage… read full answer and about $700 per year for minimum coverage.
The cost of car insurance is steadily increasing, too, both in Minnesota and nationwide. As the cost of providing insurance goes up, the premiums insurers charge also rise. All insured drivers share the increasing cost of insurance. That is why your rates tend to go up every time your policy is renewed, regardless of whether any individual factors—like your driving record or location—have changed.
There are several unique reasons why car insurance goes up every year in Minnesota, too, even if your details remain the same.
Top Reasons Car Insurance Is Expensive in Minnesota
People in Minnesota are driving more. As a result, the number of accidents, claims, and payouts is rising, too. For example, there were approximately 369 fatal crashes in 2020 in Minnesota, versus 324 fatal crashes in 2014.
Auto repairs are getting more expensive. Vehicles today cost more to repair due to the added technology and features. For example, a National Association of Insurance Commissioners study found that the average cost of vehicle repairs was around 8% higher in 2018 than it was in 2014.
People in Minnesota drive uninsured. As the cost of car insurance continues to rise, more drivers take the risk of driving without car insurance. In 2019, 10% of drivers lacked even minimum liability insurance in Minnesota. The cost of uninsured drivers is passed on to consumers through higher premiums.
Healthcare in Minnesota is getting more expensive. Car insurance companies are hit hardest when paying out claims involving medical bills, and it’s not getting any cheaper. Healthcare spending increases by an average of 6.3% every year in Minnesota.
Minnesota is experiencing more severe weather. In Minnesota, weather events like severe storms, droughts, and floods are becoming increasingly common. These weather events cause insurers to pay out a higher number of claims, which tend to be more expensive and less predictable. As a result, they have to raise rates to keep pace.
However, there could be other issues elevating your rates.
If your driving record is clean and your rates are still high, your car insurance might be expensive because of your:
Age. Drivers under 25 and older than 65 pay more for auto coverage because they are statistically more likely to be involved in serious and fatal accidents. In Minnesota, 16-year-old drivers pay an average of $2,333 per year, 25-year-old drivers pay an average of $825 per year, and people over 65 pay an average of $667 per year.
Location and driving patterns. Population-dense cities have higher premiums than rural areas because city living usually means more accidents, more property crime, and more frequent claims. In Minnesota, the most expensive locations for insurance are Fridley, Minneapolis, and St. Paul. You can also expect rates to change based on your driving patterns—long commutes or regular driving in high-risk areas can cost you.
Financial responsibility. In Minnesota, drivers with no credit pay 133% more on their premiums than drivers with excellent credit. You can also demonstrate financial responsibility by maintaining minimum car insurance with no gaps in coverage. Letting your coverage lapse could result in a higher rate when you get your next policy.
Claims history. Numerous recent claims can drive up your premiums. That's one reason why it sometimes makes sense to pay out of pocket rather than file a claim, especially if a claim won’t get you much more than your deductible.
How to Get Cheaper Car Insurance in Minnesota
Multiple factors affect the cost of car insurance. Some things you can’t control, but you do have a say in most of the contributing factors. Driving safely, obeying traffic laws, and keeping a clean driving record are the best ways to keep your insurance costs down.
Other than that, the best way to lower your car insurance costs is to compare rates from at least three insurance companies. Ideally, you should check your rates every 6-12 months, when you renew your policy. But at a minimum, be sure to check your record and shop for rates every three to five years, since you may be able to get a lower rate if a traffic violation falls off your record.
In Minnesota, the most expensive policies cost roughly $3,173 per year, and the least expensive coverage costs around $787 per year, when all driver profile information is the same. That means you could save as much as $2,386 simply by shopping around. Be sure to confirm you’re getting all the discounts you’re eligible for, too.
The penalties for driving without insurance in Minnesota include fines, suspension of license and registration, impounding your car, and imprisonment. You can avoid these consequences by meeting Minnesota’s proof of financial responsibility requirements. Minnesota requires that all drivers have at least $30,000 in bodily injury liability coverage, up to $60,000 per accident, along with $10,000 in liability coverage for property damage. You'll also need personal injury protection and uninsured/underinsured motorist coverage.… read full answer
Purchasing Minnesota’s minimum liability car insurance coverage is the easiest way to satisfy the financial responsibility requirement. Drivers in Minnesota pay an average of $832 per year to maintain the minimum amount of coverage. That’s nothing compared to the consequences of driving without insurance, especially if you get into an accident.
Penalties for Driving Without Insurance in Minnesota
Type of Offense
License and/or Registration Suspended?
Maximum Fines & Fees
No Proof of Insurance (Can Prove Coverage)
dismissed with proof
1st Offense With No Coverage
up to 90 days
Repeat Offense (No Coverage)
up to 1 year
Not having car insurance and not being able to prove that you have it are two different violations. If you have insurance but cannot prove it when you get pulled over or at the scene of an accident, you are guilty of an “administrative violation,” similar to a seat-belt ticket. In Minnesota, your citation might be dismissed if you can provide the court with proof of valid insurance for the date of the citation on or before your court date.
Driving without car insurance at all is much more serious, and the penalties are more severe. In addition to the legal consequences, you can also expect your car insurance premium to go up. A single conviction for driving without insurance raises annual premiums by an average of 10%, or $131, in Minnesota.
What happens if you get into a car accident without insurance in Minnesota?
If you get into an accident while driving without insurance in Minnesota, you will be cited and all the penalties for driving without insurance will apply, no matter who is at fault. Driving uninsured can make it difficult to be compensated for damages if you are not at fault and can have long-lasting and life-changing consequences if you are at fault.
If the accident is your fault, you’ll have to pay for all the damages out of your own pocket. In addition to the legal consequences for driving without insurance, you could easily be responsible for tens of thousands of dollars or more in damage to your vehicle, the other driver’s repair and hospital bills, and your own medical care. Both the other driver and their insurance company can sue you and have future wages and savings garnished to pay for damages. You could face mounting debt or even bankruptcy, especially if the other driver doesn’t carry uninsured motorist coverage or personal injury protection.
Even if the accident is not your fault, driving without insurance leaves you vulnerable to expensive hospital and repair bills. Minnesota is a no-fault state. In no-fault states, all drivers process claims through their own insurance companies, no matter who caused the crash. If you’re struck by a driver in a no-fault state and you don’t have car insurance, you’ll probably end up paying for everything out of your own pocket.
You can get car insurance in Minnesota, even if you are…
Uninsured: Unless you’re a newly licensed driver, having a history of driving without insurance or lapses in coverage is a risk to insurers. To insurance companies, it’s similar to a bad driving record, which is why drivers who let their insurance lapse for 60 days pay about 27% more than the average premium in Minnesota.
USAA, State Farm, Nationwide, and Geico tend to have the lowest rates for drivers who want to regain coverage.
Driving someone else’s car: It’s not illegal to drive someone else’s car if you do not have insurance, but non-owner car insurance can protect you if you don’t have a car but still drive regularly. If you borrow a car from someone living in your own home, you should be listed on the car owner’s policy. But you may want to explore non-owner coverage if you need to reinstate a driver’s license, you rent or borrow cars frequently, or you want to maintain continuous auto coverage between vehicles.
Geico, State Farm, Nationwide, and The General good places to shop if you need non-driver car insurance.
High-Risk: If you’re a high-risk driver who has been denied coverage from traditional insurance companies, check out Minnesota’s assigned risk program. Whether you require an assigned risk program or still qualify for high-risk insurance from conventional providers, you’ll pay more. In Minnesota, drivers with just two speeding tickets pay an average of 44% more on their annual car insurance premiums, for example.
Depending on your driving record and the seriousness of your infractions, you could pay even more. Still, even though rates may be higher, at least you can drive legally and avoid more penalties.
Final Thoughts: How to avoid driving without insurance in Minnesota
To avoid the penalties of driving without insurance, shop around for at least $30,000 in bodily injury liability coverage, up to $60,000 per accident, along with $10,000 in liability coverage for property damage. You'll also need personal injury protection and uninsured/underinsured motorist coverage. In Minnesota, you can find basic liability auto insurance for around $832 per year if you have a clean driving record. The consequences of driving without insurance are ultimately more costly than purchasing minimum auto insurance coverage.
No matter what your unique needs are, the best way to get accurate quotes and the best prices is to comparison shop.
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