Minnesota drivers looking for the best car insurance company are in luck: the state is rife with good choices. In a state with so many choices, though, narrowing down your options may be difficult. Reviews.com analyzed the data so you don’t have to so that you can find some of the best car insurance companies for your needs. Our research method looks at multiple factors of each company to help you understand how the carriers stack up.
The 4 Best Car Insurance Companies in Minnesota
To find the best Minnesota car insurance companies, our editorial team started by reviewing 2021 premium data from Bankrate.com for the largest car insurance companies by market share in the state. Then, we looked at discounts, coverages, digital features, and third-party scores to find our picks for the four best companies in the Land of 10,000 Lakes.
- Geico: Best for Discounts
- State Farm: Best for Safe-Driving Programs
- Auto-Owners: Best for Personalized Coverage
- American Family: Best for Cheap Full Coverage
Compare the Best Car Insurance Companies in Minnesota
While these companies are our picks for the best in Minnesota, keep in mind that every driver is different. Based on your unique needs, there may be another car insurance company that is a better fit. Shopping around and comparing car insurance quotes can be a useful strategy for finding the right insurance provider for you.
| AVERAGE ANNUAL MINIMUM COVERAGE PREMIUM* | AVERAGE ANNUAL FULL COVERAGE PREMIUM* | AM BEST 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** J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|---|
| Pin Geico | $540 | $2,051 | A++ | 847 | |
| Pin State Farm | $483 | $1,167 | A++ | 843 | |
| Pin Auto-Owners | $430 | $1,366 | A++ | 821 | |
| Pin American Family | $590 | $1,176 | A | 848 |
Information accurate as of June 2022
*2021 premium data provided by Bankrate.com
**J.D. Power’s 2022 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
- Numerous discounts
- High J.D. Power customer satisfaction rating
- Superior AM Best financial strength
Cons
- Limited local agents
- Higher-than-average full coverage premium
- Few options for add-on coverage
OTHER POLICIES OFFERED
- Home
- Renters
- Motorcycle/ATV
- Boat
STANDOUT DISCOUNTS AVAILABLE
- Emergency deployment
- Military
- Federal employee
- Seat belt use
Best for Safe-Driving Programs
WHY WE CHOSE IT
Why we chose it
Pros
- Valuable online tools and resources
- Local agents available
- High third-party scores
Cons
- No gap insurance offered
- Fewer additional options than some competitors
- Higher-than-average overall NAIC complaint index
OTHER POLICIES OFFERED
- Home
- Farm and ranch
- Business
- Life
STANDOUT DISCOUNTS AVAILABLE
- Drive Safe & Save
- Steer Clear
- Student away at school
- Vehicle safety
Best for Personalized Coverage
WHY WE CHOSE IT
Why we chose it
Pros
- Lower-than-average premium
- Superior AM Best financial strength
- Numerous endorsements and insurance products available
Cons
- Limited digital tools
- No online quote option
- Lower-than-average J.D. Power customer satisfaction score
OTHER POLICIES OFFERED
- Home
- Condo
- Boat
- Business
STANDOUT DISCOUNTS AVAILABLE
- Paid-in-full
- Advance quote
- Life multi-policy
- Payment history
Best for Cheap Full Coverage
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
- Highest minimum coverage premium on our list
- Lower AM Best financial strength rating than some competitors
- Not available in all states
OTHER POLICIES OFFERED
- Home
- Pet
- RV and camper
- Snowmobile
STANDOUT DISCOUNTS AVAILABLE
- Loyalty
- Early bird
- Low mileage
- KnowYourDrive
*2021 premium data provided by Bankrate.com
**J.D. Power’s 2022 Auto Insurance Satisfaction Study 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 lower 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, the type of car you drive, and your driving record. Climatic conditions also play a role in the cost of auto insurance. Minnesota faces harsh winters, tornadoes, and floods, which contributes to increased 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 from 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 from 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 from 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 from Bankrate.com
Key Things to Know About Car Insurance in Minnesota
Before buying a Minnesota car insurance policy, you may want to know a few important pieces of information about the state’s insurance laws, including what the minimum required limits are. Understanding what optional coverages are available and what risks are common in the state could also help you choose your coverage wisely.
Minnesota Car Insurance Requirements
Minnesota requires that all drivers carry a car insurance policy with at least the following minimum coverage limits:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $10,000 property damage liability per accident
- $25,000 uninsured motorist bodily injury per person
- $50,000 uninsured motorist bodily injury per accident
- $25,000 underinsured motorist bodily injury per person
- $50,000 underinsured motorist bodily injury per accident
- $40,000 personal injury protection (PIP)
While this is the minimum coverage required to drive legally in the state, many insurance agents recommend that you buy higher limits for more financial protection. You could also consider full coverage, which adds comprehensive and collision. These coverage types give you coverage for damage to your vehicle. If you have a loan or lease, your lender will require you to carry full coverage.
Car Insurance Coverage Options
State minimum coverage may be appropriate for some drivers, but knowing what coverage options are available can help you make an informed choice about your insurance. Here are some commonly offered optional coverages that Minnesota drivers may want to consider:
- Comprehensive coverage: This is required if you have a loan or lease but could be a good choice even if you own your car outright, depending on your vehicle’s age. Like most Midwestern states, Minnesota has a healthy deer population, and you’ll need comprehensive coverage to pay for damages caused by deer.
- Accident forgiveness: Offered by many car insurance companies, this endorsement could help protect you from a rate increase with your insurer if you cause an at-fault accident. However, you have to have the endorsement on your policy before the accident, and the at-fault accident may still affect your rate if you get quotes from other insurance companies.
- Car rental coverage: If you would need a replacement vehicle if yours is damaged from a covered claim, car rental coverage can be a smart choice. This option pays for a rental vehicle up to the daily and maximum limits on your policy while your vehicle is not drivable after a covered loss.
Frequently Asked Questions
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 2021 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.
About the Authors
Cate Deventer is a writer and licensed insurance agent. She has a Bachelor’s degree in theatre and is currently pursuing a degree in English with a concentration in professional and technical writing from Indiana University East. Her work has been featured on Reviews.com and Bankrate.com, and she’s passionate about helping people take charge of their finances. In her free time, she likes to read thrillers and sci-fi novels, garden, and toss tennis balls for her dog.
