Best Cheap Car Insurance in Minnesota for 2018

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 these types of motorists:

Good drivers

Young drivers

Drivers with one at-fault crash

Drivers with poor credit

Retired drivers

Also in this article

Minimum car insurance requirements in Minnesota

Alternative car insurance in Minnesota

» FIND YOUR MATCH: Who’s the cheapest carrier for you?

Cheapest for good drivers

For drivers with no at-fault accidents, DUIs or moving violations.

The average cost for good drivers among the three cheapest companies was $1,034 per year, or roughly $86 a month. Western National led all insurers in our analysis at $977 per year.

If you have a clean driving record, look into additional savings you could get through discounts for having no accidents, tickets or moving violations. It’s wise to compare such perks among various companies before making your final decision.

Cheapest for young drivers

For drivers in their early 20s.

 

When you’re just starting out, you might not need as much insurance as older drivers, whose savings and assets could be vulnerable in a crash lawsuit. We gathered quotes for drivers in their 20s carrying the minimum required coverage and found relatively cheap car insurance in Minnesota.

The cheapest rate we found was $706 per year from Auto-Owners Insurance, $271 cheaper than the best price for 30-year-old drivers who have more robust policies. Western National and American Family rounded out the list of the three most affordable options for this group.

Cheapest for drivers with one at-fault crash

 

You can usually bet on a rate increase if you’ve caused a crash, either at policy renewal time or when you shop for new insurance. But because insurers vary in how severely they penalize collisions, this is a good time to shop around and make sure you’re getting the best deal possible.

The most affordable quote we found was $977 per year from Western National, equal to the company’s rate for accident-free drivers, and in line with its promise not to penalize customers for accidents or violations. Auto-Owners was next cheapest, followed closely by State Farm, both with rates nearly $500 more than Western National’s.

Cheapest for drivers with poor credit

For drivers placed in the “Poor Credit” tier.

Having poor credit typically means facing higher car insurance rates. In fact, based on our findings, chances are you’d have less of rate increase for this reason than if you caused a crash.

The best deal we found for this group was $2,026 per year from American Family. That’s $1,049 higher than the cheapest quote for drivers with good credit and for drivers with one at-fault crash from Western National.

That’s not to say you should settle for the first quote you get if you have credit issues, however. The priciest quote we found overall for drivers with poor credit was over $8,000 a year, so shopping around can easily pay off.

Cheapest for retired drivers

For drivers in their mid- to late 60s who no longer use their car for commuting.

Older drivers might think they’ll see higher rates as they age. But because retirees don’t commute as many younger drivers do, they can find relatively cheap car insurance in Minnesota. We analyzed quotes for motorists in their 60s who drive half as much in a year as other groups.

American Family delivered the best deal at $776 per year, $201 cheaper than the lowest rate for drivers half that age who commute daily. Western National and State Farm were the next-lowest options, and both were cheaper than the second-lowest rates for 30-year-old good drivers.

Drivers age 55 and up can get additional savings in Minnesota by completing a state-approved accident prevention course and earning a car insurance discount. Here are the approved courses from the Minnesota Department of Public Safety.

Minimum car insurance requirements in Minnesota

The Land of 10,000 Lakes has relatively extensive car insurance requirements. Drivers must carry liability insurance, uninsured/underinsured motorist (UMBI/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/UIMBI per person.
• $50,000 UMBI/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 Assigned Risk 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:

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