Best Cheap Car Insurance in Minneapolis, Minnesota

• The average rate for full coverage auto insurance in Minneapolis is about $400 more than the statewide average of $2,010. For minimum coverage, the average rate in Minneapolis is about $30 less than the statewide average of $786.
• USAA, Auto-Owners, and State Farm offer some of the cheapest rates for auto insurance alongside Farm Bureau Mutual and Nationwide. Auto-Owners has the best ratings for customer satisfaction, but USAA and State Farm also have good ratings.
• Make sure to get quotes from different providers as prices will change depending upon things like your driving record, credit score, and age. Some providers have low prices for good drivers, but are not the cheapest for high-risk drivers.

Average rates for full coverage car insurance in Minneapolis are similar to the national average, but are a decent amount above average rates in Minnesota. However, there are plenty of companies which offer full coverage at cheaper rates including USAA, Auto-Owners, and State Farm.

Minimum coverage car insurance in Minneapolis, on average, costs more than the national average. However, many different providers like Auto-Owners and USAA offer competitive rates that are also cheaper than average costs of minimum coverage in Minnesota.

*USAA technically doesn’t qualify to rank on J.D. Power studies, due to its eligibility restrictions.

USAA, Auto-Owners, and State Farm offer some of the best prices for the best services when it comes to auto insurance in Minneapolis, Minnesota. These providers offer some of the lowest prices while also scoring well with third-party rankings for customer satisfaction. Here’s a closer look at why we chose these providers: 

Best for Veterans and Military: USAA

What We Like Most

• Top-rated regionally
• Cheap rates
• Financial services in addition to insurance

• Why we chose it: USAA has competitive rates and great service. In Minneapolis, USAA is a leading choice for cheap auto insurance. It also has great rates for teens and people with a speeding ticket in Minnesota, or who have been in an accident. USAA scores high on J.D. Power studies (however, it doesn’t officially qualify due to the studies’ eligibility restrictions). It remains a great and cheap option for drivers in Minneapolis and across Minnesota. 
• Who it’s best for: USAA offers auto insurance to military and their family members, along with some federal agency employees and pre-commissioned officers. However, due to USAA’s eligibility requirements, it is not an option for many drivers. 

Best Value: Auto-Owners

What We Like Most

• Cheap rates in Minneapolis
• Independent agents
• High third-party satisfaction ratings

• Why we chose it: Auto-Owners offers some of the cheapest rates in Minneapolis, well below the average costs in the city. It scores consistently high on J.D. Power studies, the CRASH Network Insurer Report Card, and the NAIC Complaint Index. Its rates for both full coverage and minimum coverage auto insurance are well below the average cost of auto insurance in Minneapolis. With competitive rates and great service, Auto-Owners stands out as a top choice for auto insurance. 
• Who it’s best for: Auto-Owners is a great option for drivers, especially for teens and those who have been in an accident or who have low credit. It also has discounts for students who have good grades, who attend school and have a vehicle at home more than 100 miles away, or who install a monitoring system in their car. However, it would not be a good choice for those looking for an online quote, as Auto-Owners only sells policies through independent agents. 

Best for Local Agents: State Farm  

What We Like Most:

• Local Minneapolis agents
• Cheaper-than-average full coverage rates
• High customer satisfaction

• Why we chose it: State Farm offers competitive rates for auto-insurance in Minneapolis. It has local agents in Minneapolis who can help you find the best coverage for you at the best price. State Farm also scores well for the J.D. Power studies for customer satisfaction. With numerous discounts for good driving, vehicle safety, and students, State Farm offers great rates for great coverage. 
• Who it’s best for: State Farm is a great option for drivers who have a traffic violation, DUI, or have previously been in an accident as they offer some of lowest rates for high-risk drivers. Other providers such as USAA and Auto-Owners do offer lower rates for full and minimum coverage insurance for low-risk drivers. However, State Farm’s full coverage rates are still below the city average, so it is worth getting a quote. 

Cheapest: Farm Bureau Mutual  

What We Like Most:

• Regional provider
• Cheap rates for full and minimum coverage
• Strong claims and customer satisfaction

• Why We Chose It: Farm Bureau has the cheapest average full coverage rates among our top picks, and the second-cheapest liability rates after Auto-Owners. It offers roadside assistance and has good claims services. Farm Bureau Mutual ranks higher than USAA, Auto-Owners, and State Farm on CRASH Network’s Report Card. While it scored slightly below average regionally on J.D. Power’s study, it’s worth getting a quote if a cheap policy is your priority.
• Who It’s Best For: Customers who want to work with a smaller provider and a local agent. Note that you must be a Farm Bureau member in order to purchase car insurance from Farm Bureau Mutual, but membership is open to all and typically inexpensive. The company is not the best fit if you want to shop online.

There were 17,880 car accidents in the Minneapolis area in 2023. 12,913 of the 17,880 accidents happened in good weather and only about 1,000 happened in bad weather like rain or snow. So despite the severe winters, driver error still causes many of the accidents.

In 2022, 22 fatal crashes resulted in 23 people losing their lives in Minneapolis. There were also 184 crashes which resulted in serious injury. ⁴

Minnesota is a no-fault state, therefore, drivers are covered by their own insurance for bodily injury no matter which party is at-fault for an accident. This means Minnesota drivers are required to carry both liability coverage, personal injury protection (PIP) coverage, and uninsured/underinsured motorist coverage.⁶

Liability Coverage Requirements:

• Bodily injury liability: $30,000 per person and $60,000 per accident
• Property damage liability: $10,000

Other Requirements:

• PIP: $40,000
• Underinsured/uninsured motorist coverage: $25,000 per person and $50,000 per accident

Our results come from our analysis of average premiums for full and minimum coverage in Minneapolis, Minnesota. Note for high-risk drivers, premiums will come at a higher cost. Minimum coverage averages adhere to the following limits:

• Bodily injury liability: $30,000 per person and $60,000 per accident
• Property damage liability: $10,000
• PIP: $40,000
• Underinsured/uninsured motorist coverage: $25,000 per person and $50,000 per accident