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:
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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 about $835 per year, or roughly $70 a month. Travelers led all insurers we sampled with rates well below that average at just $697 per year.
If you have a clean driving record, look into additional savings you could get through discounts for being claim- or accident-free. It’s wise to compare such perks among various companies before making your ultimate 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 $598 per year from Travelers, about $100 cheaper than the company’s average 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. But because insurers vary in how severely they penalize collisions, this could be a good time to shop around and make sure you’re getting the best deal possible.
The most affordable quote we found was $914 per year from Western National. That’s $217 higher than the cheapest rate for drivers of the same age with no accidents. Travelers was next cheapest, followed by State Farm, whose average rate was over $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 Minnesota car insurance rates. In fact, based on our findings, you’d probably have less of rate hike for causing a crash.
For example, the best deal we found for this group was $1,465 per year from Travelers. That’s $768 higher than the cheapest quote for drivers with good credit, and $551 higher than the lowest rate for drivers with one at-fault crash. 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 folks with poor credit was over $5,000 a year, so shopping around can still 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 spend little time in their car compared to younger drivers, they can find pretty cheap car insurance in Minnesota.
We collected quotes for motorists in their 60s who drive half as much in a year as other groups. American Family fetched the best deal at $698 per year, practically identical to the cheapest rate for drivers half that age who commute daily. Travelers and Western National were the next lowest options, and both were cheaper, respectively, than the second- and third-lowest rates for 30-year-old good drivers.
Drivers age 55 and up can score 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:
Cheapest car insurance in Minnesota
|Drivers with one at-fault crash||Western National|
|Drivers with poor credit||Travelers|
|Retired drivers||American Family|
Alex Glenn is a staff writer for NerdWallet, a personal finance website. Email: email@example.com.
Updated Feb. 23, 2017.
For most categories, NerdWallet averaged rates from the largest insurers for 30-year-old men and women in 10 ZIP codes and with the following coverage limits:
- $100,000 bodily injury liability coverage per person.
- $300,000 bodily injury liability coverage per crash.
- $50,000 property damage liability coverage per crash.
- $100,000 uninsured motorist bodily injury coverage per person.
- $300,000 uninsured motorist bodily injury coverage per crash.
- $100,000 underinsured motorist bodily injury coverage per person.
- $300,000 underinsured motorist bodily injury coverage per crash.
- $40,000 personal injury protection.
- Collision coverage with $1,000 deductible.
- Comprehensive coverage with $1,000 deductible.
We used a 2013 Toyota Camry in all cases. Our sample retired driver was age 67 and drove 50% fewer annual miles than other groups. Our sample young driver was age 22 and carried the minimum required coverage. These are sample rates generated through Quadrant Information Services. Your own rates will be different.