Best Minnesota Car Insurance 2020

Last modified: November 23, 2020

Known as the land of 10,000 lakes Minnesota might very well be the perfect State for recreational activities and long, scenic drives. If you do want to travel to the state by car, you will need to have auto insurance. In this article, we bring you some of the best car insurance MN so that you can appreciate the beauty of the picturesque State without stepping on the wrong side of the law.

Minnesota Auto Insurance Minimum Requirements

The table below lists the minimum mandatory insurance requirements for your vehicle in Minnesota.

Coverage Type Minimum State Requirements
Bodily Injury  + Liability

 

Per accident – $60,000, per person -$30,000
Property Damage Limit – $35,000
Uninsured Driver Per accident – $50,000, per driver – $25,000
Personal Injury Per accident and per person – $40,000
Underinsured Driver Per accident – $50,000, per driver – $25,000

 

  • Property damage or liability coverage helps cover the cost of repairs to another’s property, like home or vehicle, if you are responsible for the accident.
  • As per the Minnesota auto insurance requirements, this property damage or liability coverage also covers the expenses for repair or recovery of a damaged or lost rental vehicle.
  • Bodily injury liability insurance covers the cost of treatment for injured individuals when the accident is primarily your fault.
  • If the accident is not your fault, but the driver responsible is uninsured or doesn’t have sufficient coverage to cover costs, the uninsured motorist coverage can help you pay for medical expenses.
  • The personal injury/ no-fault Coverage covers medical and funeral costs for you and/or any passenger who gets hurt or dies in an accident.

In the following sections, you will be able to find out the average cost of auto insurance in the State, followed by a mention of the cheapest car insurance in Minnesota.

Average Cost

Age Group Average Price
20-30 $1,455.5
30-40 $1,192
40-50 $1,115.4
50-60 $1,100

 

Average Premium- Males Average Premium – Females
$1,242 $1,294

 

The exact cost of insurance varies from person to person. Factors determining the cost of insurance include your age, the condition of your vehicle, the car, its model and market worth, the city you live in and more, including your gender. Generally, women pay a higher premium than men on auto insurance, as the tables indicate.

The table will give you an idea of the average car insurance cost in Minnesota. The exact cost will vary with the type of coverage you opt for and can rise if you choose to include some other non-compulsory insurance coverage options.

Cost of Car Insurance by Top Cities

City Average Rate
Minneapolis $787.74
St. Paul $1,663
Rochester $1,296
Duluth $1,524

The national average cost for car insurance comes to $1,548, and out of the four top cities in Minnesota, only the average car insurance cost for St. Paul crosses the national average.  Duluth is almost right on the national average, and Rochester’s is slightly lower. Minneapolis has the lowest average cost of car insurance in Minnesota

It is important to note that rates vary by insurance service providers. Below we mention some of the cheapest insurance providers in the State.

Cheapest Providers

American Family, State Farm and Auto-Owners are some of the cheapest auto insurance providers in Minnesota. However, their rates vary due to multiple factors. Thus we mention below some of the best and affordable auto insurance service providers for different people.

  •  American Family offers the cheapest auto insurance (full Coverage).  The ideal driver with an excellent credit history can get auto insurance for as low as $1,093 per annum.
  • If you only want the basic minimum Coverage, North Star might be a good option.  The company offers cheap car insurance in Minnesota, as you get basic coverage for as low as $395 per year.
  • For individuals with poor credit records, American Family has the best deal, offering full Coverage for $1,772 per year.
  • Drivers with a DUI can also get a good deal at American Family and get covered for $1,137 per year.
  • Cheap insurance after DUI – $559 per annum by Western National Insurance.
  •  American Family provides the cheapest car insurance quotes in Minnesota (full Coverage) at around $1,137 per year after you get a ticket.
  • Best full coverage for young drivers – North Star – $1,123 per year.

Minnesota Auto Insurance, Traffic Rules and Penalties

There are certain laws regarding auto insurance in Minnesota. A person found driving without insurance coverage is liable to pay a fine of around $200 to $1000. They may even get jail time for up to 90 days, and their vehicle registration and driver’s license will get suspended until they get their vehicle insured. Your vehicle may be impounded, and recovering it is impossible until you get insurance.

The auto insurance rules for residents are the same as those for existing residents and locals. All registered vehicles should have Personal protection, bodily harm liability, uninsured and underinsured coverage as per Minnesota car insurance laws. You have to fulfill the minimum auto insurance requirements as soon as possible.

Best Car Insurance Companies in Minnesota

Company Cost for minimum Coverage Ratings Best For Car Insurance Cost

Average

North Star

 

$359 per year A.M Best – A+

 

JD Power Rating –(not rated)

 

Cheap minimum car insurance $1,123
Western National

 

$559 per year A.M Best – A+

 

JD Power Rating – (not rated)

 

Cheap full coverage Insurance $1,140
American Family

 

$585 per year A.M Best – A

 

JD Power Rating – 3/5

 

Cheapest for drivers with poor credit $3,521.29

 

GEICO

 

$618 per year A.M Best – A++

 

JD Power Rating4/5

 

Minimum Coverage for poor credit $3,498.53
State Farm

 

$1,388 per year A.M Best – A++

 

JD Power Rating- 3/5

 

Full coverage $2,066.99
Farmers

 

$615 per year A.M Best – A

 

JD Power Rating- 3/5

 

Non-car owner insurance $4,101
USAA

 

$1,152 per year A.M Best – A++

 

JD Power Rating5/5

 

Military members and spouses $2,861.60

 

North Star Insurance

North Star Insurance is an excellent option for auto insurance, Minnesota. The company offers a variety of coverage options from minimum to full coverage. It has excellent investment-grade ratings indicating a very stable financial outlook. This coverage is particularly ideal for those with poor credit scores, looking for minimum Coverage as it offers the cheapest auto insurance.

Western National

Western National is an excellent option for car owners looking for cheap full insurance coverage. Both North Star and Western National do not have JD power ratings but have excellent AM best ratings. Western National also offers a variety of coverage options. Its minimum Coverage may be priced a little higher than others, but its full Coverage is one of the lowest in Minnesota car insurance.

American Family

American Family is known for offering extremely affordable auto insurance coverage. Their name stands out in Minnesota as being one of the most user-friendly insurance companies. It has a 3/5 customer satisfaction rating and an excellent AM best rating. With American Family, you can get a good deal even if you are a bad driver with poor credit, making it one of the best car insurance in Minnesota.

Geico

Geico is one of the most financially stable auto insurance providers with an A++ rating by AM best and a 4/5 JD power rating to boast. The company also offers extensive auto insurance coverage and has a decent customer satisfaction rate. If you are looking for a company offering affordable minimum car insurance in Minnesota for people with poor credit, this is the one for you.

State Farm

State Farm is another renowned name in the industry with an excellent AM best rating and an above-average JD power rating of 3/5. It may not have the cheapest full coverage, but it does offer pretty affordable rates, and is a trusted name. State Farm auto insurance Minnesota is ideal for those who want a wide range of coverage options at an affordable price.

Farmers

Farmers auto owners insurance Minnesota offers some of the most extensive coverage options, including emergency repair and roadside assistance. However, the company also offers insurance for non-car owners and offers one of the cheapest auto insurance coverage available. You can even get substantial discounts if you have more than one insurance with the company making it ideal for those who have multiple cars and want to save on their insurance policies.

USAA

USAA caters to a niche market and provides insurance to currently serving and retired military personnel,their spouses and immediate family members. It is the only company with a 5/5 JD power rating, indicating an excellent customer satisfaction rate. It also offers the best auto insurance rates in Minnesota for those looking to avail full coverage on their vehicle.

In Conclusion

In this article, you can find a list of companies offering some of the best auto insurances in MN. We suggest you browse through our list and get acquainted with market rates and available options before you purchase your insurance provider and plan.

Pros & Cons

The Pros

The Cons

Final Verdict

FAQs

Does Minnesota Require Car Insurance?

Yes! Auto insurance is mandatory under Minnesota law. In fact, if you take out a car loan, your lender will also require Coverage. The State of Minnesota made auto insurance mandatory to ensure timely treatment for all victims in an accident and to ease the burden on courts.

Who Has the Cheapest Auto Insurance in Minnesota?

American Family, State Farm and Auto-Owners offer some of the cheapest rates for the basic insurance coverage deemed compulsory by law. The rate can be as low as $492 for half a year.

Is Minnesota a No-Fault State?

Yes! Minnesota is a no-fault state, and the mandatory personal injury protection coverage is another name for no-fault Coverage.

What are the Best Auto Insurances in Minnesota?

Some of the best auto insurance in Minnesota include:

State Farm

Farmers Insurance

Progressive

Allstate Insurance

 American Family Insurance

What is the Mandatory Insurance Law in Minnesota?

Because Minnesota is a no-fault state, you have to get mandatory no-fault Coverage, which is a minimum of $40,000 and covers medical expenses, funeral costs, wage loss and housekeeping costs among much more. Under the law, all drivers must also have uninsured and underinsured motorist coverage as well as bodily injury coverage.

What Car Insurance Discounts Are Available in Minnesota?

In Minnesota, insurance companies take multiple factors into consideration when setting an insurance premium. You can be eligible for multiple discounts, including customer loyalty, driver education, good driver history, insurance history, anti-theft systems, policy bounding, good student and more. 

Does Insurance Follow the Car or the Driver in Minnesota?

The best car insurance Minnesota stays with the car, so even if someone other than the owner is driving, insurance will cover costs in case of an accident. However, it is best to double-check with your insurance service provider as there may be certain exceptions.