The Best Auto Insurance in Minnesota 2024

Allstate is your best bet as a starting point for most auto insurance customers. It provides flexible and affordable coverage options that you can mix and match. As one of the largest insurance providers in the country, Allstate offers a wide range of policies for cars, motor homes, RVs, and more. We also like it for rideshare workers and infrequent drivers in Minnesota’s large metropolitan areas.

Coverage Options

Minnesota requires liability insurance, uninsured/underinsured motorist coverage, and personal injury protection (PIP), but we recommend more than the state minimum required coverage for most drivers. Other coverage options from Allstate include:

• Collision and comprehensive coverage to replace or repair your vehicle after an accident
• 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

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, called Milewise, is excellent if you usually store your vehicle. 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 is not available in every state, but luckily, Minnesota is on the list. It 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.

One of our favorite things about State Farm is its reliance on local, exclusive agents. Most of its agents in Minnesota are based around St. Paul, but you can still use their robust mobile and online tools if you don’t live close enough to an agent to do business at their office. State Farm is great for families because its discounts apply to teen drivers, who are very expensive to insure, and its bundling options allow you to consolidate your policies under one roof.

Bundling

State Farm offers a 17 percent 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 full 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).

Safe Driving and Student Discounts

State Farm has low rates, along with a wide variety of discounts. If you have teen drivers or college students on your policy, you’ll benefit from several in particular:

• Steer Clear: Drivers under age 25 with a clean record get a discount of up to 15 percent for completing an app-based driver training program.
• Good student: Students save up to 25 percent for good grades until they turn 25.
• Driver training: If everyone under 21 who uses a car in your house completes an approved driver education course, you get a discount!
• Student away at school: Drivers under 25 who go to school more than 100 miles away and leave their car at home get a discount.
• Accident-free: Drivers of any age get a discount for maintaining an accident-free record for at least three years.
• Defensive driver: Taking a driver safety course can earn you a discount.
• Vehicle: Driving a car with safety features, passive restraints, and anti-theft technology saves money and keeps your family safe.

Minnesota is friendly to classic cars, with favorable registration, inspections, taxes, emissions tests, title requirements, road quality, traffic patterns, and weather.² Collectors in Minnesota will know that insuring your vehicle is essential to maintaining and growing its value. Cue USAA — while its membership is exclusive, if you’re in the club, you can get classic car insurance through American Collectors. That’s why USAA is on our list of best auto insurance for classic cars.

Automatic Coverage

USAA’s automatic coverage for classic cars means that 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 tend to increase in value over time, so the value of your car if and when you need to file a claim may not be the same as when you buy your policy. USAA offers free inflation protection for classic cars, increasing the agreed-upon value over time. While most classic car insurers increase your protection limit by 2 or 4 percent of the car’s value to adjust for inflation, USAA offers a maximum of 6 percent, 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 is one of our best auto insurance providers for new cars because of its coverage options. Its online platform makes it easy to find a quote or sign up for a policy no matter how far from a city you live, and it provides a lot of coverage options, including gap and new-car replacement coverage. You’ll find the best auto insurance rates at Liberty Mutual if you have a clean driving record. Take advantage of their discounts and coverage to protect your new purchase!

New-Car Replacement

Most car owners know that 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.