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Best Cheap Car Insurance in Minnesota for 2020

Jan. 2, 2020
Auto Insurance, Insurance
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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 10 largest insurers in the state and identified the five cheapest options for several driver types.

Cheapest for good drivers in Minnesota

In Minnesota, the cheapest coverage we found for people with good credit and a clean driving history comes from these companies, ranked by average rates for full coverage auto insurance:

  1. American Family: $1,093 per year.
  2. North Star: $1,123 per year.
  3. Western National: $1,140 per year.
  4. Auto Owners: $1,154 per year.
  5. State Farm: $1,276 per year.
Drivers with no recent accidents or violations can get cheaper car insurance rates for having good credit. For this calculation, NerdWallet averaged rates for 40-year-old men and women with a clean driving record and good credit. In terms of driving and credit history, a large portion of drivers are closest to this profile, which carries standard "full coverage" insurance, including comprehensive and collision, along with state-required coverage. Prices shown include a good driver discount, when available from the insurer.

Cheapest for minimum coverage in Minnesota

For bare-bones coverage in Minnesota, the cheapest companies and their average rates for minimum required insurance are:

  1. North Star: $359 per year.
  2. Auto Owners: $408 per year.
  3. Western National: $411 per year.
  4. American Family: $585 per year.
  5. Geico: $618 per year.
We calculated these numbers by averaging rates for 40-year-old good drivers (earning them a discount if the insurer offers one) 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. If you're looking for the cheapest possible insurance you can get, though, you'll still want to get car insurance quotes from at least three auto insurers.

Cheapest for good drivers with poor credit

Minnesota drivers with poor credit and a good driving record may want to get quotes from these insurers, which returned the cheapest average rates for full coverage:

  1. American Family: $1,772 per year.
  2. North Star: $1,862 per year.
  3. Geico: $2,534 per year.
  4. Auto Owners: $2,571 per year.
  5. State Farm: $2,582 per year.
If you have a spotty credit history, it's important to shop around to find the cheapest auto insurance rates you can. Poor credit can have a bigger effect on car insurance premiums than even a DUI conviction or a recent at-fault crash, but prices vary by insurer. To calculate these figures, NerdWallet averaged rates for 40-year-olds with a clean driving record and associated good driver discount, if the insurer offered one. They had poor credit as reported to their insurer, and standard "full coverage" car insurance.

Cheapest for drivers with one at-fault crash

For drivers in Minnesota with an at-fault wreck on their record, the cheapest average rates we found for full coverage are from these insurers:

  1. American Family: $1,137 per year.
  2. Western National: $1,140 per year.
  3. Auto Owners: $1,451 per year.
  4. State Farm: $1,627 per year.
  5. North Star: $1,967 per year.
After a relatively minor crash, some auto insurers will charge a lot more than others for coverage. To get these figures, we averaged rates for 40-year-olds with typical "full coverage" insurance and one recent at-fault crash costing $10,000 in property damage. Your rates will remain high for three to five years after you cause an accident or have a moving violation — and you still may be rejected for coverage from certain companies, including those above. 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 insurance after a DUI in Minnesota

These are the cheapest insurance companies for Minnesota drivers with an on-record DUI, listed by average rates for full coverage:

  1. American Family: $1,137 per year.
  2. Western National: $1,140 per year.
  3. Progressive: $1,910 per year.
  4. State Farm: $1,919 per year.
  5. Auto Owners: $2,129 per year.
A conviction for driving under the influence, or DUI, generally results in higher auto insurance premiums than before. NerdWallet analyzed rates for 40-year-old drivers and standard “full coverage” car insurance with a recent DUI conviction to see which companies were cheapest. Be warned that you may be rejected for coverage, including from the companies listed above. Rates can vary by hundreds between carriers after a DUI, and some penalize for longer than others, so it’s important to shop around for the best available price right after you see a price hike and each year after that.

Cheapest insurance after a ticket in Minnesota

For someone whose driving record includes a recent speeding ticket, the cheapest companies and average rates in Minnesota for full coverage auto insurance are:

  1. American Family: $1,137 per year.
  2. Western National: $1,140 per year.
  3. Auto Owners: $1,466 per year.
  4. State Farm: $1,468 per year.
  5. North Star: $1,675 per year.
Getting a speeding ticket will result in higher car insurance rates from most companies for three to five years. To see who has the cheapest rates, we calculated average car insurance rates for 40-year-old drivers with “full coverage” insurance and a recent ticket for speeding 16 mph over the limit. Though these larger companies were the cheapest we found on average, others may be cheaper for you, so be sure to get at least three quotes before deciding on a carrier.

Cheapest for couples and families in Minnesota

In addition to single drivers, NerdWallet also analyzed car insurance rates for families — and the cheapest insurers were not the same. While you can often get a discount for insuring multiple vehicles or drivers, each company considers these factors differently. So to get the best rate, it’s important to shop around for insurance quotes after a significant change in your life, such as getting married, moving, or adding a driver to your policy.

Cheapest for a married couple in Minnesota

For a Minnesota husband and wife, both 50 years old with clean credit and driving histories, these are the cheapest insurers we found and their average rates for full coverage on two vehicles:

  1. Western National: $1,521 per year.
  2. Progressive: $1,729 per year.
  3. Auto Owners: $1,734 per year.
  4. North Star: $1,766 per year.
  5. American Family: $1,800 per year.
Couples who live together can save on auto insurance by combining policies, whether they are married or not, because they can earn multi-car and multi-driver discounts. Once they tie the knot, rates can dip further, but not because of discounts — insurers see married people as less risky and so charge them lower rates. Our hypothetical 50-year-old couple’s clean driving record also earns them both a good driver discount.

Cheapest for families with a teen in Minnesota

Here are the cheapest insurers for a 50-year-old Minnesota couple with an 18-year-old driver on their policy, ranked by average rates for two vehicles with full coverage:

  1. Western National: $2,997 per year.
  2. American Family: $3,162 per year.
  3. North Star: $3,242 per year.
  4. Auto Club Group: $3,282 per year.
  5. Auto Owners: $3,318 per year.
Adding a teen with two years’ driving experience to a married couple's policy is sure to cause a big jump in rates. Since different insurers tend to see a teen’s inexperience in different ways, we analyzed rates to see which companies had the cheapest car insurance for teens. These rates are averaged for 50-year-old couples with male and female 18-year-old drivers.

Cheapest for young drivers in Minnesota

For drivers in their 20s, finding cheap car insurance may seem like a daunting task. Insurance companies almost always charge higher rates for drivers who are young and inexperienced. Still, some insurers will be cheaper than others, because each one considers factors like age and experience differently. We analyzed rates for 25-year-olds in Minnesota to see which companies are cheapest for young drivers in various situations.

Cheapest full coverage for young good drivers

For a young driver in Minnesota who wants full coverage, these are the cheapest companies and average rates we found, assuming good credit and a clean driving history:

  1. North Star: $1,123 per year.
  2. American Family: $1,131 per year.
  3. State Farm: $1,326 per year.
  4. Auto Owners: $1,468 per year.
  5. Western National: $1,553 per year.
Drivers in their 20s can have a hard time finding cheap car insurance, and that's even truer when they need full coverage. The rates above are averages for 25-year-old male and female drivers with comprehensive and collision coverages, which are often required for drivers with active auto loans or leases. These rates reflect a good driver discount. Young drivers, like all drivers, should check several quotes to find the cheapest for the coverage levels they need.

Cheapest minimum coverage for young good drivers

For a 25-year-old who opts for Minnesota’s minimum required car insurance, the cheapest companies and their average rates are:

  1. North Star: $359 per year.
  2. Auto Owners: $481 per year.
  3. Western National: $559 per year.
  4. American Family: $593 per year.
  5. State Farm: $629 per year.
Since young people often have fewer assets to protect with liability insurance, they can usually get away with lower coverage limits. For an age group with relatively high insurance rates on average, that's good news, keeping rates as low as possible. For this price set, we averaged rates for 25-year-old male and female drivers who have clean driving records, good credit and bare-bones insurance coverage.

Poor credit and minimum coverage

When a young driver in Minnesota has poor credit in tandem with a good driving record, these insurance companies have the cheapest average rates for minimum coverage policies:

  1. North Star: $595 per year.
  2. American Family: $933 per year.
  3. Auto Owners: $1,096 per year.
  4. Geico: $1,221 per year.
  5. State Farm: $1,278 per year.
Poor credit is common for younger folks just starting out, who may still be building their credit files. That can increase rates further, so it's extra important to shop around and compare as many insurance quotes as possible to find the cheapest you can get. For these prices, we averaged rates for 25-year-old male and female drivers with no recent accidents or violations (earning them a good driver discount), minimum coverage car insurance, and credit in the "poor" tier as reported to an insurer.

Cheapest for minimum coverage after a crash

For a 25-year-old driver who’s responsible for a recent wreck, these are the cheapest companies and average rates for Minnesota’s minimum required insurance:

  1. Western National: $559 per year.
  2. North Star: $612 per year.
  3. American Family: $613 per year.
  4. Auto Owners: $655 per year.
  5. State Farm: $819 per year.
To get prices for this group, we averaged rates for 25-year-old male and female drivers with good credit and a recent at-fault crash costing $10,000 in property damage. Since car insurance is often pricier after a crash, and especially so for young drivers, we assumed minimum required insurance in the state to contain costs for our hypothetical driver. Depending on your situation, you may still be rejected for coverage, including from the companies listed above. If you've caused a crash, no matter your age, be sure to check auto insurance quotes just after the third and fifth anniversaries of your incident, when insurers often adjust rates downward.

Cheapest for minimum coverage after a DUI

These are the cheapest insurers for young Minnesota drivers with a recent DUI on their record, ranked by average rates for minimum coverage:

  1. Western National: $559 per year.
  2. American Family: $613 per year.
  3. State Farm: $999 per year.
  4. Auto Owners: $1,055 per year.
  5. North Star: $1,055 per year.
Young drivers with a recent DUI on their records will need to be diligent to find the lowest car insurance rates they can get — it's likely that many companies' rates will be quite expensive. Depending on the circumstances, you may be rejected for coverage, including from the companies listed above. But spending the time to shop around for quotes can help you find the lowest price from a company available to you. For this analysis, we averaged rates for male and female 25-year-old drivers with a recent DUI conviction. They had good credit and minimum required car insurance, which helps keep rates down.

Cheapest for minimum coverage and a ticket

After a recent speeding ticket, here are the cheapest companies for a 25-year-old Minnesota driver, along with average rates for minimum required insurance:

  1. North Star: $411 per year.
  2. Western National: $559 per year.
  3. American Family: $613 per year.
  4. Auto Owners: $665 per year.
  5. State Farm: $726 per year.
Getting a speeding ticket is never fun, and neither is the higher car insurance bill you may receive months later. At that point, it's time to shop around for better rates, and it wouldn't hurt to repeat on your third and fifth ticket anniversaries, when insurers may adjust rates downward. We analyzed rates for 25-year-old male and female drivers with a recent speeding violation for going 16 mph over the speed limit to see prices for this group.

Cheap for military families

Cheap auto insurance for drivers with a military connection is often available through USAA, which offers coverage exclusively for active service members, veterans and their families. We didn’t rank USAA with other companies because it isn’t available to everyone, but USAA was among the three cheapest options in Minnesota for every driver category above.

Recap: Cheapest car insurance in Minnesota

  • Good drivers: American Family
  • Minimum coverage: North Star
  • Poor credit: American Family
  • After an at-fault crash: American Family
  • After a DUI: American Family
  • After a speeding ticket: American Family
  • Married couples: Western National
  • Families with a teen: Western National
  • Young good drivers: North Star
  • Minimum coverage for young good drivers: North Star
  • Minimum coverage for young drivers with poor credit: North Star
  • Minimum coverage for young drivers after a crash: Western National
  • Minimum coverage for young drivers after a DUI: Western National
  • Minimum coverage for young drivers after a ticket: North Star

» MORE: Compare car insurance

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 auto insurance quotes in Minnesota, try NerdWallet’s car insurance comparison tool to possibly save hundreds.

Methodology

For our “good driver” profile, NerdWallet averaged rates from the largest insurers in the state for 40-year-old men and women in all ZIP codes with 12,000 annual miles driven. The policy includes:

  • $100,000 bodily injury liability per person.
  • $300,000 bodily injury liability per accident.
  • $50,000 property damage liability per accident.
  • $100,000 uninsured motorist coverage per person.
  • $300,000 uninsured motorist coverage per accident.
  • Collision coverage with a $1,000 deductible.
  • Comprehensive coverage with a $1,000 deductible.
If required, minimum additional coverages were added and "good driver" discounts were automatically applied. Our “young driver” had all the same characteristics, but average rates were for 25-year-old men and women. We used a 2016 Toyota Camry LE for all single drivers. We used the same assumptions for all other driver profiles, with the following exceptions:

  • For drivers with minimum coverage, we adjusted the numbers above to reflect minimum required coverage by law in the state.
  • We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for drivers with poor credit.
  • For drivers with one at-fault crash, we added a single at-fault crash costing $10,000 in property damage.
  • For drivers with a ticket, we added a single speeding violation for driving 16 mph over the speed limit.
  • For drivers with a DUI, we added a single drunken driving violation.
Couples in our analyses were 50-year-old men and women with good credit and clean driving histories, averaged across all ZIP codes with the same policy outlined above. To see rates for families with a teen, we added an 18-year-old licensed two years ago, averaging rates for male and female teens. For couples and families we added a 2016 Nissan Rogue S to create a two-car household.

In all cases, a paperless discount, e-signature discount and electronic funds transfer discount were automatically applied. These are rates provided by Quadrant Information Services. Your own rates will be different.