The Best Auto Insurance in Minnesota 2025

As one of the largest insurance providers in the country, Allstate offers a wide range of policies for cars, motor homes, RVs, and more. It offers a range of additional coverages, including rideshare, OEM, and classic cars.

Coverage Options

Minnesota’s required coverages are more comprehensive than in many other states — they include liability coverage, uninsured/underinsured motorist coverage, and personal injury protection (PIP). However, it’s wise to raise your liability limits about the state minimum to 100/300/100, and, in most cases, to add comprehensive and collision coverage to your policy.

In addition to these standard coverages, additional options from Allstate include:

• Rental reimbursement coverage to rent a car while yours is being repaired under a covered claim
• Ride for hire to fill coverage gaps if you use your vehicle to work for a rideshare company
• Roadside coverage for common services like tire changes and jump-starts
• Original equipment manufacturer and custom parts and equipment coverage
• Classic car coverage for a variety of vehicles

Ride for Hire

Most rideshare companies are legally required to provide you with insurance; however, there may be gaps if you use your vehicle for your rideshare gig. Allstate’s ride-for-hire endorsement adds protection after your auto insurance policy stops, and before the company insurance kicks in (this is usually when you have the app on but haven’t matched with a rider yet).

Pay-Per-Mile Coverage

Allstate’s pay-per-mile coverage, Milewise, is great for those who don’t drive often. Whether you’re retired, working from home, taking care of your kids, or prefer public transportation, pay-per-mile solves a vital dilemma: Why pay for something you’re not using?

Milewise uses a device to capture your driving miles and review your driving habits. You’ll pay a daily rate plus a variable per-mile rate. Allstate’s website uses $1.50 per day and $0.72 per mile as example rates.

Note that Allstate no longer advertises the states in which Milewise is available (though previously, Minnesota was on the list). The only way to get a quote for Milewise is to speak with an agent by phone or in person.

Along with its cheaper-than-average rates, one of our favorite things about State Farm is its reliance on local, exclusive agents. The company has offices across the state of Minnesota, from Aitkin to Zumbrota. If you prefer to conduct business digitally, you can still use the company’s robust mobile and online tools.

Cheap Rates in Minnesota

State Farm’s full coverage rates are close to $200 less than the average annual rate of full coverage in Minnesota, which is $2,010. Aside from USAA, whose coverage is only available to military members and their families, State Farm’s full coverage policies are the most affordable among our top picks in Minnesota. 

When it comes to minimum coverage in Minnesota, State Farm’s average annual premium is also well below the state average of $786. 

Bundling 

State Farm offers a 17% discount if you bundle two or more of the following policies (it’s applied automatically when you select them): 

• Car insurance
• Motorcycle insurance
• Boat insurance
• Motor home insurance
• ATV insurance
• Homeowners insurance
• Condo insurance
• Renters insurance
• Life insurance
• Health insurance
• Disability insurance
• Liability insurance
• Small business insurance

Bundling is a great way to save money if you and your family own a home or recreational vehicle, or if you want all your insurance policies in one place for the future.

Multi-Vehicle Savings

If you live in a house with multiple vehicles, you can save money by keeping them on the same policy. State Farm allows you to insure up to four cars and offers a discount if you live in the same household as the other policyholders; are related by marriage, blood, or adoption; and jointly own the vehicles (all names on the insurance policy).

Available exclusively to military members, veterans, and their families, USAA has cheap auto insurance rates in Minnesota for multiple driver profiles. We also named it one of the best auto insurance companies for classic cars.

Cheap Rates for Many Driver Profiles

Along with State Farm, USAA offers some of the cheapest rates in Minnesota. This includes drivers with clean records, as well as those with speeding tickets, at-fault accidents, and DUIs. Families with teen drivers and Minnesotans with poor credit can also find competitive rates from USAA.

Strong Customer Satisfaction in Minnesota

In J.D. Power’s Auto Insurance Study, which measures customer satisfaction with providers, USAA scored the highest in the Central region. Its score of 759 out of 1,000 surpassed the regional average by over 100 points.²

Classic Car Coverage

Minnesota is friendly to classic cars, with favorable registration, inspections, taxes, emissions tests, title requirements, road quality, traffic patterns, and weather.³ Collectors in Minnesota will know that insuring your vehicle is essential to maintaining and growing its value. If you’re a USAA member, you can get classic car insurance through American Collectors. 

American Collectors classic car insurance stands out for a few reasons:

• Automatic Coverage. Most qualifying vehicles added to your collection are automatically covered for 30 days, up to $100,000. If the perfect hot rod catches your eye at the local car show, you can drive away with it, knowing you’re covered until you officially add it to your policy.
• Inflation Guard. Classic cars increase in value over time, so the value of your car at the time of a claim may not be the same as when you first bought your policy. USAA offers free inflation protection for classic cars. While most classic car insurers increase your protection limit by 2% or 4% of the car’s value to adjust for inflation, USAA offers a maximum of 6%, so in the event of a total loss, you receive the full value of your car. 
• Towing and Labor for Collectors (TLC). You can purchase American Collectors’ roadside assistance for classic cars with your USAA classic car policy, which pays for emergency expenses in case of a breakdown or accident. Four tiers (Silver, Gold, Platinum, and Titanium) will reimburse you for towing, roadside assistance, lockouts, emergency travel expenses, and events specific to classic cars, like car show expenses and theft rewards. 

Liberty Mutual’s multitude of coverage options make it a great option for insuring a new car in Minnesota. This includes GAP and new car replacement coverage. You’ll find the best auto insurance rates at Liberty Mutual if you have a clean driving record.

New-Car Replacement

Vehicles begin depreciating as soon as you drive them off the lot. In the event of a total loss, your insurance payout is typically the actual cash value (ACV) of the car, which could be a lot less than what you paid for it even months prior. Liberty Mutual will pay you the full cost of a new car regardless of its ACV. To qualify, your vehicle must:

• Be less than one year old
• Have fewer than 15,000 miles
• Not be leased
• Have comprehensive and collision coverage
• Not have any previous owners

Gap Coverage

Gap coverage comes in handy if you finance or lease your new vehicle. It pays for the difference between what you owe and the car’s worth minus your deductible, so you don’t owe the full amount of your new vehicle if it’s totaled in a covered accident. Consider gap coverage if you financed your car for 60 months or if you put down less than 20 percent.

Better-Car Replacement

Liberty Mutual’s second car replacement offering has broader eligibility. You can purchase coverage for a new car — even if it’s over a year old — provided you did not lease it. In the event of a total loss, better-car replacement gives you money to buy a vehicle that is one model year newer and has up to 15,000 miles less than the one you had.

Progressive is a popular auto insurer nationwide and the second-largest auto insurance coverage provider on the market. Its discount options are extensive and the premiums are competitive. For drivers with a DUI looking for an auto insurance policy, Progressive stands out for its cheaper-than-average policies and coverage options.

Along with State Farm and Liberty Mutual, Progressive’s app tools are the highest rated of any provider reviewed here. Its AM Best financial strength rating is an impressive A+, which means the company has the financial means to pay out claims.

Affordable Premiums for Drivers with a DUI

The average annual rate for a driver with a DUI in Minnesota is $3,635. This is slightly higher than the national average, which comes in at $3,305 annually. Nationally, Progressive is known for having competitive rates for drivers with a DUI, with rates nearly $600 below the average. If you have a DUI in Minnesota, it’s worth getting a quote from Progressive. State Farm is also a good option.

As well as insuring drivers with a DUI, Progressive offers SR-22s and can file them immediately if necessary.

Discounts

Progressive offers an impressive range of discounts and claims that up to 99% of its auto insurance customers earn at least one discount on their insurance policy. This means that almost anyone could benefit from Progressive’s extensive discount options.

Discount availability varies by state. The below table shows several of the discounts offered in Minnesota, along with the potential savings you could earn:

Highly Rated App

Tied with USAA and State Farm, Progressive has the highest-rated app among our Minnesota top picks. The app allows you to view coverages and policies for all details and drivers, manage payments and billing, and share ID cards from your phone. App users can also file and manage claims, as well request roadside assistance and explore additional Progressive policy options.

Progressive also scored above-average in J.D. Power’s Digital Experience Study, which measures customer satisfaction with the digital platforms of insurance companies, including website and mobile app quality, ease of navigation, speed, and clarity/accessibility of information.⁴