Compare Cheap Auto Insurance in Minnesota

Travelers has the lowest premiums in Minnesota for full coverage, at $1,498 per year on average. American Family and USAA also offer competitive rates, averaging $1,625 and $1,697 per year, respectively.

In Minnesota, USAA has the cheapest average minimum coverage rates for military-affiliated drivers at $453 per year. For those who don’t qualify, regional insurer North Star Mutual ($495 annually) has the next cheapest average rates, followed by Auto-Owners ($503 annually).

Insuring a teenage driver can be quite expensive. In Minnesota, Auto-Owners offers the lowest average annual premiums for households with teens at $3,710, which is nearly 26 percent below the state average. On average, USAA (for military families) offers teen auto insurance for $4,013 annually, and Travelers offers it for $4,107 annually — both below the state average.

USAA (for military-affiliated drivers) is by far the cheapest provider for drivers who have a speeding ticket on their record in Minnesota, costing an average of $1,831 per year — 33 percent below the state average. Auto-Owners, Travelers, and State Farm all offer average annual rates ranging from $2,000 to $2,118. For military personnel, there might be other factors to look into when comparing State Farm and USAA.

USAA has the cheapest rates for military-affiliated drivers who have been found at-fault in an accident with average annual rates of $2,108. Travelers and Auto-Owners also offer competitive average rates at $2,137 and $2,125 annually. State Farm is close behind, averaging $2,356 per year.

For Minnesotans with a DUI on their driving record, State Farm offers the least expensive premiums on average at $2,301 annually. Travelers and USAA are close behind, with average annual rates of $2,479 and $2,740. Auto-Owners and American Family also fall below the state average.

Having low credit can have an even bigger impact on premiums than a DUI. Minnesotans with bad credit will likely find the best rates with American Family, averaging $3,336 per year, or GEICO (which is among the more expensive insurers for most other categories in Minnesota), averaging $3,478 per year.

Many consumers care not only about the cost of their insurance premiums, but also the kind of service and treatment they can expect in the unfortunate event they must make a claim. In Minnesota, American Family has one of the highest customer satisfaction scores. It also scored above average in J.D. Power’s 2025 national claims satisfaction study.

While not rated on J.D. Power Studies (likely due to their size), regional insurers North Star Mutual, Western National, and West Bend received relatively higher grades in the CRASH Network Insurer Report Card. CRASH Network is an independent organization that surveys collision repair shops on insurer’s claims practices, which can impact quality of repairs and your experience as a customer.

1. Shop around: Make sure to get quotes from multiple insurance companies before you commit to a contract. The rates noted here are average, statewide rates for general categories of drivers, but your specific situation could be different. We recommend you pick a handful of insurance providers based on the data for the general driver category that best describes you and the customer satisfaction info, and then get quotes from each of them.
2. Consider raising your deductible: If you have some savings to rely on and are willing to take on more financial risk, you can lower your premium by raising your comprehensive and/or collision deductibles. By doing so, you’re agreeing to cover more of the cost yourself in the event of an accident, before the insurance kicks in and starts covering everything.
3. Reduce coverage on older vehicles: Having collision or comprehensive insurance on an older/less valuable vehicle might not pay off much, as it won’t take much damage to total the vehicle.
4. Maintain good credit: Having a bad credit rating is one of the most significant factors in terms of driving up your insurance premiums. Anything you can do to improve your credit history — like opening a credit card account, using it to make small purchases, and being sure to pay it down to zero every month — could help immensely in lowering your premiums.

Average premium rates across the state can be informative, but the specific location you’re living in can also have a substantial impact on premiums. There are other factors that influence this but, commonly, bigger metro areas tend to have more congestion and accidents with more damage claims, driving up rates. In Minnesota, the population centers of the Twin Cities area are some of the most expensive areas to insure your vehicle, with a suburb on the outside of the city, like Bloomington, falling more toward the middle of the pack. Smaller cities, further from the denser population centers — like Duluth and Rochester — are among the cheapest.

When compared with most other states, auto insurance in Minnesota is required to meet a relatively comprehensive set of minimum requirements. This includes coverage in the event of an accident with one or more uninsured drivers, as well as personal injury protection (PIP) to cover the physical and financial injuries (like lost wages from missed work, for example) of the policyholder.

Minnesota is a “no-fault” state, meaning each driver’s PIP will go towards their own needs after an accident, which prevents litigation over small injury claims. However, this does not extend to damages to vehicles, for which the at-fault driver can be held liable.

To drive legally in Minnesota, a driver must carry insurance covering:

• Bodily injury liability: $30,000 per person/$60,000 per accident
• Property damage liability: $10,000 per accident
• Personal injury protection: $40,000
• Uninsured/underinsured motorist coverage: $25,000 per person/$50,000 per accident

It’s recommended that drivers get more than just the minimum mandated coverage — and most do. Having higher uninsured/underinsured motorist coverage can also help protect drivers in the event they’re in a costly accident with someone who does not have sufficient insurance to cover the damages (or doesn’t have insurance at all).

We analyze average auto insurance premiums in Minnesota for full and minimum coverage for good drivers with good credit as well as other driver profiles, including those with DUIs, accidents, low credit, and teenagers. Full coverage averages use the following limits:

• Bodily injury liability: $100,000 per person/$300,000 per accident
• Property damage liability: $100,000 per accident
• Personal injury protection: $40,000
• Uninsured and underinsured motorist bodily injury: $100,000 per person/$300,000 per accident
• Comprehensive and collision: $500 deductible