Reviews Report

• Geico is the best car insurance company in Minnesota, scoring a 5 out of 5 based on discounts, customer satisfaction, resources, and more.
• The average car insurance premium in Minnesota is slightly higher than the national average at $1,622
• The best Minnesota car insurance companies have plenty of discounts, additional coverage options, and at least average customer satisfaction ratings.

In 2020, Minnesota had 364 fatal traffic accidents, the same number as of 2019. According to the Department of Public Safety, Minnesotans generally drive smart, but the lighter traffic during the recent pandemic has allowed many people to ignore speed regulations, resulting in crashes and fatalities. This makes it imperative to have sufficient car insurance coverage to protect you and your vehicle.

Most major car insurance companies operate in the North Star state but we have narrowed down the companies for the best auto insurance in Minnesota to five, based on pricing, discounts, coverage options and overall customer satisfaction. 

The 5 Best Auto Insurance Companies in Minnesota

• Geico: Best Minnesota Car Insurance for Discounts 
• State Farm: Best Minnesota Car Insurance for Premium-Saving Programs
• Auto Owners: Best Minnesota Car Insurance for Customer Service
• American Family: Cheapest Full Coverage Auto Insurance in Minnesota
• Nationwide: Best Car Insurance Coverage Options in Minnesota

Information accurate as of April 2021

* Data provided by Coverage.com**J.D. Power’s 2020 Auto Insurance Satisfaction Study for the Central region. Based on a 1,000-point scale.

* Data provided by Coverage.com, price based on the state minimum required policy.

**J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Central region. Based on a 1,000-point scale.

The Average Cost of Car Insurance in Minnesota

Compared to the national average of $1,555, drivers in Minnesota pay a slightly higher premium of $1,622 annually in car insurance. However, this rate is not the same for everyone, since car insurance premiums largely depend on personal demographics, such as age, city of residence, type of car, and driving record. Climatic conditions also play a role in the cost of auto insurance. Minnesota faces harsh winters, tornadoes, and floods, which raises insurance premiums because of the risk of weather damage. Depending upon population density, some cities have cheaper rates than others.

Top 3 Cheapest Car Insurance Companies in Minnesota

* Data provided by Coverage.com, price based on the state minimum required policy.

Top 3 Most Expensive Car Insurance Companies in Minnesota

* Data provided by Coverage.com, price based on the state minimum required policy.

Top 3 Cheapest Cities for Car Insurance in Minnesota

* Data provided by Coverage.com, price based on the state minimum required policy.

Top 3 Most Expensive Cities for Car Insurance in Minnesota

* Data provided by Coverage.com, price based on the state minimum required policy.

Minnesota Car Insurance: What You Need to Know

It is mandatory for every driver to have insurance in Minnesota. But before hastily purchasing car insurance, it is important to consider the factors that influence the premiums. Do you drive a brand new model or an old car? Are you an unmarried driver under 25, a homeowner or live in a neighborhood prone to theft? What does your driving record look like? All of these combine to affect your annual car insurance cost. In Minnesota, climate, rate of traffic accidents, insurance fraud, and uninsured motorists negatively influence car insurance prices. Living in crowded cities with a higher chance of theft and vandalism might also be responsible for steeper premiums.

• Minnesota has nearly 4 million licensed drivers
• In 2019, the estimated rate of uninsured motorists was 9.9%, lower than many other populous states
• In 2019, there were 1,263 deer-related crashes in the state

Minnesota Minimum Insurance Requirements

The minimum car insurance requirements in Minnesota are 30/10/40 and all drivers need to comply. Since this is a tort state, basic insurance must include the following:

• $30,000 per person and $60,000 per accident in bodily injury liability 
• $10,000 in property damage liability 
• $40,000 in personal injury protection 
• $25,000 per person and $50,000 per accident in uninsured/underinsured  motorist coverage

Failure to show proof of sufficient coverage can result in fines, license suspension, and invalidation of the vehicle’s registration.

Minnesota’s No-Fault Law

The land of the 10,000 Lakes is a no-fault state when it comes to car insurance. This means that in case of a traffic accident between two or more vehicles, the respective insurance companies have to pay the claim regardless of who was at fault. Although this reduces the chances of lawsuits and other legal complications, it significantly increases insurance cost since PIP coverage is mandatory. 

Additional Car Insurance Coverage in Minnesota

Motorists in Minnesota might feel secure with only liability coverage, but keep in mind that the minimum coverage does not fully protect the insured. While it is going to pay the bills of the other party if you are ever involved in a traffic accident, it will not cover your own expenses. Therefore, having full coverage is often necessary, especially if you have a new, expensive vehicle or an auto loan or live in a city with high-risk drivers. Some of the coverages you could consider adding to your policy include:

• Collision coverage: Pays for damages you suffer if you crash with another vehicle.
• Comprehensive coverage: Pays for weather damage, theft, and vandalism.
• Gap insurance: Pays for the outstanding auto loan amount if your financed car is stolen or totaled.

Minnesota Car Insurance FAQ 

Methodology 

Reviews.com scores products, services and companies using five quantifiable criteria to help readers choose the best one for them. For the best car insurance in Minnesota, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores and online resources from each company and averaged the scores to produce our very own Reviews.com score. These scores were created with our readers in mind and are meant to be a helpful tool to simplify the process of choosing which car insurance company is best for you. 

As for average pricing, we used Coverage.com’s data of car insurance in Minnesota, based on the profiles of a 30-year male and female. For full coverage, the details used were the following:

• $100K bodily injury liability per person
• $300K bodily injury liability coverage per crash
• $100K property damage liability coverage per crash
• $500 collision coverage deductible
• $500 comprehensive coverage deductible

Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting five days a week and driving 12,000 miles per year. Since auto insurance rates vary widely among different profiles, we encourage you to compare options that fit your specific needs.

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