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Icon CheckLast updated: January 8, 2024

The Best Auto Insurance in Minneapolis

Narrow down your auto insurance choices in the Land of 10,000 Lakes.

Best for Low-Mileage Drivers
Allstate Logo 2023

Allstate has a strong presence in Minneapolis. You can benefit from Allstate’s many discounts, coverage add-ons, and usage-based insurance options.

Best for Farmers
Farm Bureau Financial Services logo

Available in select states in the Midwest and West, including Minnesota, Farm Bureau Financial Services offers some of the cheapest rates for drivers in Minneapolis.

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Minneapolis is Minnesota’s most populous city, home to more than 3.5 million people. About half of people in Minneapolis travel by personal car, averaging about 16 miles per day. If you’re one of the many licensed drivers in Minneapolis, odds are you want the best deal on auto insurance. For some people, that means the cheapest, but many factors go into the decision to purchase auto insurance from a particular provider.

Blue CarBest Car Insurance in Minneapolis

  1. Allstate – Best for Low-Mileage Drivers
    If you drive only occasionally, you can save significantly with Allstate’s pay-per-mile insurance. Additionally, Allstate offers robust coverage and discounts for RVs, so you can take advantage of the natural beauty of Minnesota.
  2. Farm Bureau Financial Services – Best for Cheap Coverage
    Available in select states in the Midwest and West, including Minnesota, Farm Bureau Financial Services offers some of the cheapest rates for drivers in Minneapolis.
  3. USAA – Best for Military
    If you are one of the thousands of Air Force families stationed in Minneapolis — or hold another U.S. military affiliation — you qualify for USAA, which offers excellent rates, top customer service, and a bevy of other financial services.

Summary of the Best Auto Insurance in Minneapolis

  1. 1.

    Best for Low-Mileage Drivers: Allstate

  2. 2.

    Farm Bureau Financial Services: Farm Bureau Financial Services

  3. 3.

    Best for Air Force Families: USAA

  4. 4.

    Best Local Agents: State Farm

Comparison of the Best Auto Insurance in Minneapolis

Provider Average annual rate for full coverage in Minnesota Low-mileage discount Student discount RV Coverage J.D. Power regional customer satisfaction rating (average is 822 out of 1,000)1
Allstate $2,039 Yes Yes Yes 806
Farm Bureau Financial Services $839 Yes Yes Yes Not rated
USAA $1,124 No Yes Yes 890
State Farm $1,055 Yes Yes Yes 833


Minnesota law requires drivers to have $30,000 of bodily injury liability coverage per person, $60,000 of bodily injury liability coverage per accident, and $10,000 of property damage liability coverage per accident. Minnesota is a no-fault state, which means drivers are required to have uninsured/underinsured motorist coverage and personal injury protection coverage as well.

Detailed List of the Best Auto Insurance in Minneapolis

1. Best for Low-Mileage Drivers - Allstate

What We Like Most:

  • Three ways to earn a student discount
  • Pay-per-mile option for drivers with low mileage
  • No waiting period to purchase accident forgiveness

Allstate is one of the largest insurance providers in the country and one of the few major providers to offer pay-per-mile insurance. It offers a wide range of policies, including coverage for motorhomes and RVs. You can get a quote online or through an Allstate agent who knows more about your particular neighborhood. Regardless, Allstate provides many options for customer service and holds an A+ rating for its financial strength.

ProsWho It's Best For
  • pro
    Minneapolitans who drive fewer than 10,000 miles annually
  • pro
    People who like to camp
  • pro
    Renters or homeowners who want to bundle home and auto insurance
  • pro
    Teen drivers and their parents
ConsWho It's Not Best For
  • con
    People who want a traditional, unlimited-mileage policy
  • con
    Military members, veterans, and their families

Pay-Per-Mile Coverage

On average, people in Minneapolis drive fewer than 7,500 miles per year — usually, mileage falls between 5,500 and 7,000 miles annually.2

If you drive infrequently — for example, because you take alternate transportation to work, are retired or a student, or work from home — you may save money with a pay-per-mile insurance plan.

Allstate’s pay-per-mile insurance, called Milewise, is available in 21 states including Minnesota. With Milewise, you’ll pay a flat daily rate plus a per-mile rate. For example:

Daily rate $1.50
Per-mile rate $0.06
Miles driven per day 15
Daily cost ($1.50 + $0.06 x 15) $2.40
Estimated monthly cost $72

Similar to a traditional auto policy, your daily and per-mile rate are determined by factors like your age, vehicle, ZIP code, and driver history. Additionally, Minnesota is one of several states in which your rates may fluctuate based on driving behavior, which includes:

  • Driving over 80 mph
  • Braking suddenly
  • Late-night driving, between 11 p.m. and 4 a.m.

If you have multiple vehicles on the same policy, you can choose whether to designate each as pay per mile or traditional unlimited mileage.

Insurance for Your Camper

Minnesota’s state forests have 46 campgrounds with 1,000 campsites. State parks and state recreation areas have more than 5,000 campsites, plus thousands of miles of rugged or paved state trails.3 If your preferred mode of transport for camping is an RV, Allstate is your best bet for insuring the vehicle. RV insurance from Allstate includes:

  • Bodily injury liability
  • Property damage liability
  • Collision coverage
  • Comprehensive coverage
  • Personal effects coverage
  • Medical payments coverage
  • Personal injury protection (PIP)
  • Uninsured/underinsured motorist coverage
  • Towing and labor
  • Total loss replacement
  • Vacation liability
  • Emergency expense
  • Full-timer’s liability coverage
  • Pet coverage
  • Tow bar coverage

RV Discounts

Allstate’s homeowners discount applies to your RV if you live in it full time more than six months a year. Allstate also offers a discount if you complete an approved RV safety course. Other discounts, including a married discount, paid-in-full discount, and paperless discount, apply across vehicles, including RVs.

2. Farm Bureau Financial Services - Farm Bureau Financial Services
Farm Bureau Financial Services logo

What We Like Most:

  • Insurance for cars, motorcycles, RVs, and farm vehicles
  • Save money with usage-based insurance, up to 30 percent for good drivers
  • Discounts available if you drive 75,000 miles or less per year

Farm Bureau Financial Services provides competitive insurance rates and good customer service. The company caters to the agricultural industry in particular, so it’s a great option for farmers and people living in rural communities outside of Minneapolis. Its insurance products are available only to members who pay a fee of $25 to $50 for access to insurance products and membership perks.

ProsWho It's Best For
  • pro
  • pro
    Business owners
  • pro
    People with multiple vehicles
ConsWho It's Not Best For
  • con
    Non-Farm Bureau members

Expanded insurance products

Farm Bureau Financial Services goes above and beyond standard auto insurance offerings. Its insurance products include:

  • Business insurance
  • Condo insurance
  • Classic car insurance
  • Farm and ranch insurance
  • Farm vehicle insurance
  • Health insurance
  • Home insurance
  • Life insurance
  • Mobile home insurance
  • Motorcycle insurance
  • Recreational vehicle insurance
  • Renters insurance
  • Umbrella insurance

Safe Driving Perks

Traffic fatalities increased by 8 percent in Minneapolis between 2019 and 2020.4 Staying safe on the road benefits you, your loved ones, and everyone driving with or near you. Farm Bureau’s safe driving program, Driveology, uses telematics to provide feedback on your driving and earns you a discount on your premium. Young drivers also get a 25 percent discount on their premium when they complete Farm Bureau’s Young Driver Safety Program.

Farm Vehicle Insurance

The food and agriculture industries support 388,134 jobs in Minnesota. The state ranks fifth in crops and seventh in total agricultural production in the state. Minnesota is also a top manufacturer of agricultural machinery, with companies like Bobcat and Tafco operating in the state.5

Farm Bureau’s farm vehicle insurance provides protection for trucks, tractor-trailers, and more. Coverage includes liability, collision, and uninsured/underinsured motorist. Farm Bureau sends out a local agent to analyze your farm or ranch and determine the coverage you need before you sign your policy so you won’t have any coverage gaps.

3. Best for Air Force Families - USAA

What We Like Most:

  • Cheapest rates for teens on a family policy or on their own
  • Special discount for teens transitioning off their parents’ policy
  • Strong customer service and claims process

USAA provides auto insurance only to the military, veterans, and their families. Employees and active-duty military who work at Minneapolis-St. Paul Air Reserve Station can take advantage of USAA’s reasonable auto insurance premiums and discounts specifically for customers in the military. J.D. Power doesn’t rank USAA among other insurance companies in its annual customer satisfaction survey, but its customers rate it even higher than the top-ranked insurance provider in the Central region.

ProsWho It's Best For
ConsWho It's Not Best For
  • con
    Non-USAA members
  • con
    Non-military members or families

Military Benefits

Minneapolis-St. Paul Air Reserve Station is home to the 934th Airlift Wing, the “Global Vikings,” Minnesota’s only Air Force Reserve unit. The base supports approximately 5,000 members of the Air Force, Air Force Reserve Command, Minnesota Air National Guard, Army Reserve, Naval Reserve, Marine Corps Reserve, and Civil Air Patrol.

USAA’s benefits for military members extend beyond its rates. The company offers a military on-base discount of up to 15 percent on your comprehensive coverage when you garage your car on base and a vehicle storage discount of up to 60 percent on your premium if you need to store your insured vehicle in a secure location while traveling for military service. Another benefit for active-duty military is USAA’s low-mileage program with Noblr, a USAA company. This usage-based program charges based on how much and how safely you drive, so you pay less if you don’t drive your car often (or at all) while on base or deployed outside of Minneapolis.

Aviation Insurance

USAA offers personal and business aviation insurance — including commercial-use drones — through Falcon Insurance. Some examples of coverage options include:

  • Flying single-engine, light jet, or experimental aircrafts
  • Repairing and maintaining aircrafts
  • Working in aviation manufacturing
  • Fuel sales and hangar rentals
  • Owning or operating a business jet or a fleet
  • Aerial photography business
  • Operating a flight school
  • Learning to fly
  • Instructing or flying someone else’s aircraft

Service Offerings

USAA backs up its high customer satisfaction score with quality customer service offerings. It offers 24/7 claims reporting online, no payment plan fees, and mobile policy management. You can also access 24/7 roadside assistance and accident forgiveness as optional coverages on your plan.

4. Best Local Agents - State Farm

What We Like Most:

  • Multiple discounts for safe driving, including one specifically for young drivers
  • Local agents
  • Discounts for multiple cars

State Farm is one of our top picks for provincial insurance because of its safe driving discounts and many exclusive agents. No matter where you live, State Farm provides a wide range of insurance products, online support options, and mobile capabilities. State Farm’s local agents — of which there are at least 25 in Minneapolis — know the lay of the land in your locality. This makes them an invaluable addition to your insurance quote and policy process.

ProsWho It's Best For
  • pro
    Safe drivers
  • pro
    Teen drivers
  • pro
    People who want to work with an agent
ConsWho It's Not Best For
  • con
    Drivers with low annual mileage
  • con
  • con
    Military and federal employees

Exclusive Agents

State Farm’s exclusive agents in Minneapolis can sell State Farm products and only State Farm products. The benefit to you is their depth of knowledge of State Farm’s offerings, discounts, and eligibility requirements. Use State Farm’s agent search function to find a local agent in your area.

Safe Driving Perks

Safe Drivers win at State Farm. The company offers multiple safe driving discount programs. These include:

  • Drive Safe & Save
  • Steer Clear
  • Accident-free
  • Defensive driving
  • Good driver


We chose the best auto insurance providers in Minneapolis, Minnesota, using a three-pronged approach:

  • Company information: We analyze data about each company and the car insurance it provides, including information surrounding coverages and discounts. We also take into account third-party customer satisfaction and financial strength ratings from AM Best, the Better Business Bureau, J.D. Powder, Moody’s, the National Association of Insurance Commissioners, and Standard & Poor’s.
  • Proprietary data: Given that has been connecting people to car insurance providers for over 20 years, we have collected millions of data points surrounding transactions when someone signs up for a policy. We analyze our data to find out which customers had the most success with which companies. Not every company caters to every type of customer, so by specifying each company’s demographic, we save customers time in considering companies that won’t cover them for whatever reason.
  • Institutional knowledge: After covering the auto insurance industry for over two decades, we’ve amassed institutional knowledge regarding each insurance provider, its strengths, and weaknesses. More specifically, we consult with Paul Ford, the president of insurance at Centerfield,’s parent company. Paul has spent nearly three decades working in the insurance industry, with tenures at Canadian Access, Inslogic, Capital One Insurance Services, NetQuote, Bankrate, and Datalot. We leverage Paul’s extensive knowledge about car insurance to help customers find the perfect policy.

Auto Insurance FAQ

What is the recommended auto insurance coverage in Minnesota?

We recommend the minimum coverage in Minnesota — bodily injury, property damage, uninsured/underinsured motorist, and personal injury protection — combined with as much comprehensive and collision coverage as you can afford.

What is the average cost of auto insurance in Minnesota?

The average cost of auto insurance in Minnesota is $881 per year, about 16 percent less than the national average.

What is the best auto insurance for seniors in Minnesota?

Some of the best auto insurance providers for seniors in Minnesota include The Hartford (AARP), USAA, Nationwide, State Farm, and GEICO.


  1. Auto Insurance Customer Satisfaction Plummets as Rates Continue to Surge, J.D. Power Finds. J.D. Power. (2023, Jun 13).

  2. Transportation Action Plan – How people move in Minneapolis. (2024).

  3. Camping. Minnesota Department of Natural Resources. (2024).

  4. REPORTS AND STATISTICS. Office of Traffic Safety. (2024).

  5. Food & Agriculture. (2024).