Reviews Report
- The average full coverage car insurance premium in Minnesota is on par with the national average, according to 2021 data from Bankrate.com, at $1,643 per year.
- 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 4 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
Compare the Best Car Insurance Companies in Minnesota
| Full Coverage Annual Premium* | State Minimum Annual Premium* | AM Best Financial Strength AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. Power Overall Customer Satisfaction** J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|---|
| Pin Geico | $2,051 | $540 | A++ | 845 | |
| Pin State Farm | $1,167 | $483 | A++ | 847 | |
| Pin Auto-Owners | $1,366 | $430 | A++ | 815 | |
| Pin American Family | $1,176 | $590 | A | 845 |
Information accurate as of July 2021
* Data provided by Bankrate.com
**J.D. Power’s 2021 Auto Insurance Satisfaction Study for the Central region. Based on a 1,000-point scale.
Best for Discounts
Why we chose it
Why we chose it
Pros
- Various ways to save
- Strong financial rating
- Higher than average customer satisfaction
Cons
- Limited local agents
Types of Coverage Offered
- Personal injury protection
- Rental reimbursement
- Roadside assistance
- Collision and comprehensive
Discounts Available
- New vehicle
- Safety features
- Federal employee
- Emergency deployment
- Multi-policy and vehicle
More Geico Insurance Reviews
Best for Premium-Saving Programs
Why we chose it
Why we chose it
Pros
- Valuable online tools and resources
- Local agents always available
- Solid financial strength and claims satisfaction
Cons
- No gap insurance offered
- Few additional options
Types of Coverage Offered
- Rideshare coverage
- Travel expenses
- Uninsured/underinsured motorist protection
- Roadside assistance
Discounts Available
- Driver training
- New vehicle
- Bundling policies
- Multi-vehicle Military deployment
- Safe driver
More State Farm Insurance Reviews
Best for Customer Service
Why we chose it
Why we chose it
Pros
- Noteworthy customer service
- Local agents aplenty
- Quick claims processing
Cons
- Limited digital tools
- No online quote
- No online claims filing
Types of Coverage Offered
- Collision and comprehensive
- Personal injury protection
- GAP insurance
- Uninsured/underinsured motorist protection
- Rental expenses coverage
Discounts Available
- Paperless billing
- Teen driver
- Safety features
- Policy bundling
- Safe driver
More Auto-Owners Insurance Reviews
Cheapest Full Coverage Auto Insurance
Why we chose it
Why we chose it
Pros
- Lifetime guarantee at partnered repair shops
- Several discounts available
- Lower-than-average full coverage rates
Cons
- Below average customer satisfaction scores
- Minimum coverage more expensive than competitors
- Only available in select states
Types of Coverage Offered
- Emergency road service
- Personal injury protection
- GAP insurance
- Accidental death & dismemberment
- Rental expenses coverage
- Uninsured/underinsured motorist protection
Discounts Available
- Multi policy
- Early bird
- Defensive driver
- Low mileage
- Good driver
More American Family Insurance Reviews
* Data provided by Bankrate.com.
**J.D. Power’s 2021 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 $1,674 per year for full coverage, drivers in Minnesota pay a slightly higher premium of $1,643 annually in car insurance, based on 2021 data from Bankrate.com. 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
| Company | Average Annual Full Coverage Premium* |
| Iowa Farm Bureau | $1,015 |
| State Farm | $1,167 |
| American Family | $1,176 |
* Data provided by Bankrate.com.
Top 3 Most Expensive Car Insurance Companies in Minnesota
| Company | Average Annual Full Coverage Premium* |
| QBE | $2,214 |
| Geico | $2,051 |
| Country Financial | $2,022 |
* Data provided by Bankrate.com.
Top 3 Cheapest Cities for Car Insurance in Minnesota
| City | Average Annual Full Coverage Premium* |
| North Mankato | $1,438 |
| Mankato | $1,445 |
| Moorhead | $1,476 |
* Data provided by Bankrate.com.
Top 3 Most Expensive Cities for Car Insurance in Minnesota
| City | Average Annual Full Coverage Premium* |
| Minneapolis | $1,980 |
| St. Paul | $1,948 |
| Brooklyn Center | $1,887 |
* Data provided by Bankrate.com.
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 reviews products, services and companies based on five criteria to help readers understand how companies compare based on similar metrics. For the best car insurance companies, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores and online resources from each company to determine top providers.
As for average pricing, we used Bankrate.com’s data of car insurance in Minnesota, based on the profiles of a 40-year male and female. For full coverage, the details used were the following:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
