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Car insurance rates in the Twin Cities can run about $600 higher than those in Elmore, the city with the cheapest car insurance in Minnesota, about two hours south. You can see comparable state car insurance rates for every city and town in Minnesota below. Enter a ZIP code, choose an age group and coverage level to see the highest and lowest rate for your area fielded from major insurers. That way you can know what to expect to save by shopping around.
The average car insurance rate in Minnesota is $1,187 a year. That’s about $190 less than the national average, according to CarInsurance.com’s rate analysis. But where you live in Minnesota will affect what you pay. When setting your rate, insurance companies take into account the severity and frequency of claims in your neighborhood, your driving record, the type of car you drive and other variables. That’s why the price for the same coverage can vary significantly among insurance companies — and why you should compare rates.
For Minneapolis ZIP code 55404, the highest rate among six carriers is $2,150. That’s over $1,000 more than the lowest ($1,031). When shopping for car insurance, use our average car insurance rates tool to compare rates. Enter a ZIP code to see the average premium for your neighborhood. You will also see the highest and lowest rates from the six major carriers surveyed to get an idea of what the most affordable car insurance price is in your area.
Minnesota has a no-fault car insurance law. If you're injured in an auto accident, no matter whose fault, you claim against your own personal injury protection (PIP) coverage first. If your PIP limits are exceeded, then claims can be made against the at-fault party's bodily injury liability coverage.
Minnesota requires a minimum of $40,000 in PIP; $20,000 of that amount is allowed for medical expenses, and $20,000 may be used for lost wages or other nonmedical expenses.
In addition to PIP, Minnesota mandates bodily injury liability coverage of at least $30,000 per person ($60,000 per accident), plus $10,000 of property damage liability. This property damage limit is low; if you have savings and a home to safeguard, we recommend you increase all of your liability limits.
Uninsured motorist bodily injury (UM) and underinsured motorist (UIM) are separate coverages, but both are required as part of a Minnesota auto insurance policy with limits of $25,000 per person ($50,000 per accident).
The cheapest car insurance in Minnesota that you can get will typically be the minimum limits required to drive legally. But more protection that provides a financial safety net should you get in an accident doesn’t cost that much more, and in some cases is about the same price, or even a few dollars less.
You’ll see in the chart below that hiking your coverage to liability limits of $50,000 per person ($100,000 per accident), and $50,000 for property damage costs less than the lower state minimum limits. That's because in some instances insurance companies take into account the amount of coverage you had prior to buying or renewing your policy. If you had higher liability limits in your past, they consider you less of a risk and therefore you get a lower rate. For example, if you have just state minimum coverage, and then buy another state minimum policy, you won’t get a price break. The same is true if you have state minimum limits and then go to higher limits, of say, 50/100/50. But if you had 50/100/50 previously and then buy another 50/100/50 policy, you do get a price break.
Increasing your insurance from the state minimum to full coverage with a $500 deductible costs, on average, $608 more, or about $50 a month.
| Coverage limits | Average annual rate |
|---|---|
| Liability Only – state minimum | $579 |
| Liability Only - 50/100/50 BI/PD | $575 |
| Full Coverage - 100/300/100 BI/PD$500 Comp/Collision deductible | $1,187 |
*The table shows the average annual rate of nearly every ZIP code in Minnesota from up to six major insurance companies. Rates are for a male driver, age 40, with a clean record and good credit for a 2016 Honda Accord. Data was provided for CarInsurance.com by Quadrant Information Services.
If you’re on board to buy more than bare-bones coverage, you may be wondering exactly how much more car insurance you need.
Use our How Much Car Insurance Do You Need? tool to get a recommendation.
We recommend you buy more insurance than is required to legally drive a car in your state, especially if you have savings and assets. The more money you have, the more likely you are to be sued following a car accident should your insurance be insufficient to cover all the expenses. If your net worth is:
If you're leasing or financing your car, you must get coverage of 100/300/100 or higher.
Collision coverage pays for damage to your car after an accident that you cause. Comprehensive insurance pays to replace stolen cars and broken glass and for damages from vandalism, flooding, hail, fire and animal strikes. These optional coverages are usually not budget-busters. Minnesota drivers pay, on average, $223 a year for collision and $180 annually for comprehensive.
If your car is:
If you buy comp and collision, check our guide to choosing a deductible amount.
These coverages are required in Minnesota, at a minimum of $25,000 per person ($50,000 per accident) but really should match the liability limits you choose. Uninsured motorist coverage and underinsured motorist coverage pays for damages if you’re hit by a driver with no insurance or a driver with coverage that’s insufficient to pay for your repairs and medical expenses.
Medical payments coverage can help pay for the medical or funeral expenses of covered drivers and passengers after an accident, regardless of fault, starting at $5,000 and up to $25,000. In most states, including Minnesota, it's an optional addition to your car insurance policy. Because you are required to have PIP in Minnesota, you likely don't need MedPay. That's because PIP provides coverage equal to -- and beyond -- MedPay, which does the following:
If you don’t own your car outright and have an accident, gap insurance pays the difference between the cash value of your car and the current outstanding balance on your loan or lease.
Below you'll see average annual rates for Minnesota, ranked cheapest to most expensive, for three coverage levels:
| Company | State minimum |
|---|---|
| Geico | $368 |
| State Farm | $504 |
| Allstate | $560 |
| Farmers | $629 |
| Allied | $655 |
| Progressive | $757 |
| Company | 50/100/50 |
| Geico | $396 |
| Allstate | $545 |
| State Farm | $551 |
| Farmers | $607 |
| Allied | $662 |
| Progressive | $692 |
| Company | 100/300/100 |
| Geico | $935 |
| Farmers | $1,030 |
| Allied | $1,188 |
| State Farm | $1,190 |
| Progressive | $1,295 |
| Allstate | $1,483 |
To find rates by company and ZIP code for Minneapolis, visit our Minneapolis car insurance page.
Scores are based on Insure.com’s “Best Insurance Companies” customer review survey of 3,700 customers. Companies not in the top 10 of market share do not qualify. All scores are out of 100.
Best customer service:
1. USAA – 100
2. State Farm – 93.7
3. Nationwide – 93.7
3. American Family – 92.3
Best claims service:
1. Progressive – 98.6
2. Liberty Mutual – 91.9
3. USAA – 89.9
Best value for the price:
1. USAA -- 99
2. Geico – 97.4
3. State Farm -- 91
| Rank | Company Name | Direct premiums written | Market share % | Overall Customer Review Ranking |
|---|---|---|---|---|
| 1 | State Farm | 806,997 | 24.89% | 90.4 |
| 2 | Progressive | 471,436 | 14.54% | 89.6 |
| 3 | American Family | 359,351 | 11.08% | 89.2 |
| 4 | Farmers | 227,109 | 7.01% | 81.1 |
| 5 | Allstate | 195,470 | 6.03% | 87 |
| 6 | Liberty Mutual | 117,764 | 3.63% | 86.5 |
| 7 | Geico | 97,317 | 3% | 88.1 |
| 8 | USAA | 92,468 | 2.85% | 97.2 |
| 9 | Auto-Owners | 88,124 | 2.72% | n/a |
| 10 | Nationwide | 88,039 | 2.72% | 89 |
*Source: A.M. Best market share rankings are based on direct premiums written in 2015.
Customer review rankings based on Insure.com's 2016 "Best Insurance Companies" survey of 3,700 customers. Scores are out of 100.
Like ice fishing? If you regularly drive onto one of Minnesota's 11,842 lakes while ice-fishing, you'll want comprehensive insurance … just in case. Collision coverage won't pay if you fall through.
Rental car coverage: Minnesota law mandates that every car insurance policy include, under the property damage liability section, $35,000 in coverage for damage to (or loss of use of) a rental car -- without a deductible being due.
Discounts: State law requires auto insurers offer drivers age 55 and older a 10 percent discount for completing an approved defensive driving course. A discount of 5 percent off of comprehensive is required for vehicles with an anti-theft device.
Electronic proof of insurance: Minnesota law allows an insurance identification card to be provided in electronic format.
Uninsured motorist penalties for Minnesota: You may be fined $200 to $1,000, be sentenced to 90 days in jail, have your license and registration suspended and have your car impounded.
