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Last updated: January 21, 2026The Best Auto Insurance in Minnesota in 2026
State Farm, American Family, USAA, Liberty Mutual, and Auto-Owners offer solid protection for your vehicle in the Land of 10,000 Lakes.
Best for Bundling
Editor's Rating:
4.9/5
4.9/5Full Coverage Averages in Minnesota
- Annual Premium: $2,131
- Monthly Premium: $178
Best Value
Editor's Rating:4.4/5
4.4/5Full Coverage Averages in Minnesota
- Annual Premium: $1,625
- Monthly Premium: $135
Best for Military and Veterans
Editor's Rating:5/5
5/5Full Coverage Averages in Minnesota
- Annual Premium: $1,697
- Monthly Premium: $141
Key Takeaways
- Minnesotans looking for the best value car insurance should consider American Family. Those with other driving profiles and needs may find the best options from State Farm, USAA, Liberty Mutual, and Auto-Owners.
- In Minnesota, car insurance averages $2,345 for full coverage and $661 for minimum coverage. The prices for both levels of coverage are close to the national average.
- While your actual insurance quote may vary, our pricing data provides a helpful benchmark for comparing providers.
Summary of the Best Auto Insurance in Minnesota
- Best for Local Agents: State Farm
- Best Value: American Family
- Best for Military and Veterans: USAA
- Best for Coverage Options: Liberty Mutual
- Best for New Cars: Auto-Owners
Compare the Best Cheap Auto Insurance in Minnesota
| Company | Full Coverage Monthly Avg. in MN | Minimum Coverage Monthly Avg. in MN | Central customer satisfaction (J.D. Power) |
|---|---|---|---|
| State Farm | $178 | $53 | Above average |
| American Family | $135 | $50 | Above average |
| USAA | $141 | $38 | Above average |
| Liberty Mutual | Data unavailable | Data unavailable | Below average |
| Auto-Owners | $155 | $42 | Above average |
| Minnesota | $2,345 | $661 | – |
Breaking Down the Best Cheap Auto Insurance in Minnesota
1. Best for Local Agents - State Farm
Why we chose it
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.
State Farm also offers bundling discounts for combining your car insurance with other policies, including home and life insurance. If you rent your home, you can save up to $834 by adding renters’ coverage with your auto insurance.1
Additionally, drivers can save by keeping multiple vehicles 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.
Who it’s best for
Drivers who want to work with a local agent, people who want to bundle multiple policies, families with multiple cars
State Farm Minnesota Pricing
| State Farm | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $178 | $53 |
| Annually | $2,131 | $637 |
| Difference from Minnesota average | -9% | -4% |
2. Best Value - American Family
What We Like Most:
- Low full coverage premiums
- Significant bundling savings
- Multiple young driver discounts
Why we chose it
With American Family, Minnesota drivers with a clean record can enjoy low rates and great service. It offers some of the cheapest rates for full coverage and those with bad credit. The provider also ranked third in the Central region for J.D. Power’s Auto Insurance Study, placing just behind State Farm.
Families looking for additional savings can bundle their American Family home and auto policies for up to 40 percent off. While the company’s rates for teen drivers are similar to the state average, American Family has a plethora of discount opportunities for families with drivers under 25 — including ones for having a parent who is an American Family customer and volunteering for a non-profit.
Who it’s best for
Safe drivers, drivers with bad credit, families with young drivers
American Family Minnesota Pricing
| American Family | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $135 | $50 |
| Annually | $1,625 | $596 |
| Difference from Minnesota average | -31% | -10% |
3. Best for Military and Veterans - USAA
What We Like Most:
- Caters to military members
- Cheap rates
- Strong satisfaction ratings in Minnesota
Why we chose it
Available exclusively to military members, veterans, and their families, USAA offers some of the cheapest rates in Minnesota. This includes drivers with clean records, as well as those with speeding tickets and at-fault accidents. In addition, USAA scored the highest in the Central region in J.D. Power’s Auto Insurance Study — which measures customer satisfaction with providers. Its score of 719 out of 1,000 surpassed the regional average by 70 points.
For classic car owners, USAA offers classic car insurance through American Collectors. The company’s classic car policies come with benefits like free inflation protection guard, and towing and labor for collectors.
Who it’s best for
USAA members, their children, and spouses; Minnesotans who prioritize customer service; families with teen drivers
USAA Minnesota Pricing
| USAA | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $141 | $38 |
| Annually | $1,697 | $453 |
| Difference from Minnesota average | -28% | -31% |
4. Best for Coverage Options - Liberty Mutual
What We Like Most:
- Extensive list of add-on coverages
- Perks for teachers
- Strong digital tools
Why we chose it
Out of all the providers on our list, Liberty Mutual has the most robust list of additional coverages. Those who want protection beyond the standard coverages can add accident forgiveness, original parts replacement, and new car replacement to their policy. Liberty Mutual also has unique offerings, like a vanishing deductible and Mexico car insurance.
Additionally, Minnesota teachers who purchase a Liberty Mutual policy automatically get school-related coverage. The provider offers a $0 deductible for school-related vandalism and collision, and up to $2,500 in coverage if school property is stolen or damaged while in your car.
DID YOU KNOW?
Minnesota has over 57,000 teachers in its public school system, and about 44 percent of them teach elementary school students.2
Who it’s best for
Drivers looking for robust add-ons, teachers, those looking for an excellent digital experience
5. Best for New Cars - Auto-Owners
What We Like Most:
- Offers gap insurance
- Independent agents available
- Consistently high customer satisfaction scores
Why we chose it
Auto-Owners is a regional provider with lower-than-average rates and consistently high customer satisfaction scores. In addition to above-average scores in the Central region from J.D. Power, Auto-Owners also made the CRASH Network honor roll. The survey reflects body shop’s experiences with insurers, indicating you can expect a smooth repair process if your car is in a covered accident.
For Minnesotans who recently purchased or leased a new car, the provider offers specialized coverages including gap insurance — which covers the difference between what you owe and the car’s worth if it’s totaled. Auto-Owners also provides diminished value protection to compensate you if your car is worth less after a covered accident.
Who it’s best for
New car owners, those looking for good customer service, people looking to bundle insurance
Auto-Owners Minnesota Pricing
| Auto-Owners | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $155 | $42 |
| Annually | $1,854 | $503 |
| Difference from Minnesota average | -21% | -24% |
Best Cheap Picks — Detailed Customer Satisfaction Summary
| Company | J.D. Power Auto Insurance Study – Central3 | CRASH Network Report Card4 | J.D. Power Claims Satisfaction5 | NAIC Complaint Index6 |
|---|---|---|---|---|
| State Farm | 664 | C- | 716 | 2.15 |
| American Family | 660 | C+ | 702 | 1.41 |
| USAA | 719 | D+ | 741 | 2.74 |
| Liberty Mutual | 640 | D+ | 730 | 3.51 |
| Auto-Owners | 654 | B | 711 | 1.06 |
| Average | 649 (out of 1,000) | C+ | 700 (out of 1,000) | 1 |
| What the study measures | Customer satisfaction regionally, based on responses from over 40,000 customers | Claims handling and payment practices, based on an annual survey of collision repair shops | Satisfaction with the claims process, based on responses from nearly 10,000 customers who recently filed a claim | Consumer complaints relative to market share. The lower the score, the better |
Average Cost of Auto Insurance in Minnesota
Full Coverage Rates in Minnesota
Minnesota’s car insurance rates for full coverage are on par with the national average. Minnesota residents pay about $2,345 per year or $195 per month.
| Category | Full coverage average (annual) | Full coverage average (monthly) |
| Minnesota Average | $2,345 | $195 |
| National Average | $2,356 | $196 |
Minimum Coverage Rates in Minnesota
For liability insurance, Minnesotans pay about 8 percent more than the national average, about $661 a year or $55 a month. Because car insurance premiums depend on factors like driving record, zip code, and credit score, we suggest looking at quotes from a minimum of three providers for the best value.
| Category | Minimum coverage average (annual) | Minimum coverage average (monthly) |
|---|---|---|
| Minnesota Average | $661 | $55 |
| National Average | $722 | $60 |
Auto Insurance Costs by City in Minnesota
How much you pay for car insurance rates depends largely on your city and neighborhood. Among Minnesota’s major cities, Minneapolis and St. Paul have the highest rates, while rates in Rochester tend to be lower.
| City | Average annual premium | Average monthly premium |
|---|---|---|
| Minneapolis | $2,784 | $232 |
| St. Paul | $2,740 | $228 |
| Bloomington | $2,530 | $211 |
| Duluth | $2,282 | $190 |
| Rochester | $2,166 | $180 |
How Many Car Accidents Happen in Minnesota?
In 2024, there were 64,706 car crashes in Minnesota. Those crashes resulted in 372 people killed and over 23,000 people injured. A little under 47,000 crashes resulted in property damage only. December saw the highest number of crashes of any month.7
Minimum Auto Insurance Requirements in Minnesota
Minnesota requires all of its 4.3 million licensed drivers to have car insurance. According to Minnesota state law, drivers must have these liability limits:
- Bodily injury liability: $30,000 per person and $60,000 per accident
- Property damage liability: $10,000 per accident
- Personal injury protection: $40,000 per person, per accident
- Uninsured motorist coverage: $25,000 per person and $50,000 per accident
- Underinsured motorist coverage: $25,000 per person and $50,000 per accident8
While Minnesota’s minimum coverage requirements are relatively robust compared to other states’, it’s wise to increase your protection. Raising your liability limits and adding comprehensive and collision will help to protect you financially in the event of an accident.
RELATED:
If you want more information on insurance requirements and driving laws, check out our Minnesota state guide to auto insurance.
Frequently Asked Questions
Minnesota drivers spend an average of $2,345 per year on full coverage auto insurance, which is on par with the national average. Minimum coverage is $661 on average, which is about 8 percent lower than the national average.
When you purchase a vehicle in Minnesota, you have up to 30 days to purchase auto insurance. If you’re a new resident in Minnesota, you have up to 60 days to register your vehicle.
It is illegal not to have car insurance in Minnesota. Failure to present proof of insurance results in a fine of at least $200, license and registration suspension until you provide proof of insurance, and additional penalties.
Methodology - How We Review Providers
The companies we review are assessed based on the following criteria to determine the best auto insurance providers in Minnesota:
- Pricing (40%): We analyze pricing data for full coverage and minimum coverage policies, as well as other common driver criteria in Minnesota such as DUI coverage, coverage for teens, and coverage for new car owners, to determine which providers offer the best rates. Full coverage averages use the following limits:
-
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $50,000 per accident
- Personal injury protection: $40,000
- Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
- Comprehensive and collision: $500 deductible
- Claims handling (25%): We recognize that claims fulfillment is the core service of every auto insurance provider. We review industry ratings from sources such as J.D Power’s Claims Satisfaction Study and AM Best ratings to assess the speed and ease of each provider’s claims handling process.
- Customer Experience (25%): We review customer experience data from J.D Power and the National Association of Insurance Commissioners (NAIC) specific to Minnesota. We evaluate customer satisfaction with a given auto insurance provider, along with overall customer experience.
- Coverage Options (10%): We value insurers whose coverage options go beyond Minnesota’s minimum requirements. We look at the availability of coverage offerings such as rideshare coverage, rental reimbursement, and gap coverage.
Sources
Save up to $1,356 when bundling auto & home insurance. State Farm. (2026).
https://www.statefarm.com/insurance/bundlingMinnesota Education Statistics Summary 2023-24. Minnesota Education. (2023, Sept 25).
https://education.mn.gov/mdeprod/groups/educ/documents/basic/cm9k/mdg0/~edisp/prod084762.pdfIt’s Now a Buyer’s Market for Auto Insurance, J.D. Power Finds. J.D. Power. (2025, Jun 10).
https://www.jdpower.com/business/press-releases/2025-us-auto-insurance-studyTop Rated U.S. Car Insurance Companies for 2025. Crash Network. (2025).
https://www.crashnetwork.com/irc/Satisfaction with Auto Insurance Claims Strained by Higher Deductibles, More Total Losses, J.D. Power Finds. J.D. Power. (2025, Oct 28).
https://www.jdpower.com/business/press-releases/2025-us-auto-claims-satisfaction-studyConsumer Insurance Search Results. NAIC. (2026).
https://content.naic.org/cis_refined_results.htmMinnesota Crash Statistics. MN Crash. (2026).
https://mncrash.state.mn.us/Pages/Home.aspxAuto Insurance Guide. Minnesota Commerce Department. (2026).
https://mn.gov/commerce-stat/pdfs/auto-insurance-guide.pdf
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