Best Cheap Car Insurance in Minnesota for 2019

Car insurance rates vary widely from one insurer to the next, which is why shopping around is so important in your quest for cheap car insurance in Minnesota.

To help drivers find the best deal available, NerdWallet researched rates from the nine largest insurers in the state and identified the three cheapest options for several driver types.

Cheapest for good drivers

American Family was the cheapest insurer we found for good drivers with clean credit, with an average rate of $77 per month. Western National was just a couple bucks more per month on average, and State Farm was the third-cheapest we found in Minnesota for this group.

For this calculation, NerdWallet averaged rates for 40-year-old men and women with a clean driving record and good credit. With the exception of age, a large portion of drivers are closest to this profile, which carries standard "full coverage" insurance, including state-required coverage.

Cheapest for drivers with poor credit

Drivers with spotty credit in Minnesota might want to take a look at American Family, which had the cheapest rate we found at $145 per month, on average. State Farm and Auto-Owners round out the list, the only three we found for this group under $200 per month on average.

Poor credit can have a bigger effect on car insurance premiums than even a DUI conviction or a recent accident. To calculate these figures, NerdWallet averaged rates for 40-year-olds with a clean driving record, poor credit as reported to their insurer, and standard "full coverage" insurance.

Cheapest for drivers with one at-fault crash

Western National was the cheapest carrier we found for Minnesotans with an on-record accident, at $79 per month, on average. American Family was close behind in second and State Farm was the third-cheapest for this group.

To get these figures, we averaged rates for 40-year-olds with one recent at-fault crash and the typical "full coverage" insurance. Your rates will remain high for three to five years after you cause an accident or have a moving violation. If you fall into this category, be sure to shop for new insurance rates just after the three-year and five-year anniversaries of your infraction.

Cheapest for low-mileage drivers

The cheapest auto insurance company we found for drivers in Minnesota who put few annual miles on their cars is American Family for 2019. It had an average rate of $72 per month, with Western National and State Farm not far behind.

Whether you're retired, work at home or often use public transportation, you may be able to get cheaper car insurance simply because you drive less. The rates above are for 40-year-olds with typical "full coverage" insurance and a clean driving record who drive 5,000 miles per year instead of the standard 12,000.

Cheapest for minimum coverage

In our analysis Western National had the cheapest rates for minimum coverage car insurance in Minnesota, at $34 per month, on average. Auto-Owners was the second-cheapest for bare-bones coverage, and American Family was third.

We calculated these numbers by averaging rates for 40-year-old good drivers who have only the minimum mandatory insurance in their state. Such light coverage isn't typically recommended, since it might not cover all the bills resulting from a car accident, but it's better than nothing — especially if you can't afford much more.

Minimum required auto insurance in Minnesota

The Land of 10,000 Lakes has relatively extensive car insurance requirements. Drivers must carry liability insurance, uninsured motorist coverage (UMBI), underinsured motorist (UIMBI) coverage and personal injury protection (PIP) in the following amounts:

• $30,000 bodily injury liability per person.
• $60,000 bodily injury liability per accident.
• $10,000 property damage liability per accident.
• $25,000 UMBI per person.
• $50,000 UMBI per accident.
• $25,000 UIMBI per person.
• $50,000 UIMBI per accident.
• $40,000 PIP.

For the most accurate auto insurance quotes in Minnesota, keep your required and optional coverages identical when comparing prices. Visit NerdWallet’s guide to state car insurance requirements for more detail on what these mandatory coverage levels mean, and how and when your policy kicks in.

Alternative car insurance in Minnesota

Minnesotans who’ve been denied car insurance on the open market within the past 60 days can apply for coverage through the Minnesota Automobile Insurance Plan. This network of insurers was established to help high-risk drivers secure coverage at established price levels.

For even more help finding cheap car insurance quotes in Minnesota, try NerdWallet’s anonymous comparison tool to possibly save hundreds.

Here’s a summary of where you’ll find the cheapest insurance, by category: