Average Cost of Car Insurance in Minnesota

By Coverage Level

You should always expect to pay more for full coverage than for minimum coverage. In Minnesota, the average full coverage policy is more than three times the cost of a minimum coverage policy.

By Company

We found that Travelers has the lowest average annual auto insurance cost in Minnesota for full coverage. Other affordable coverage options include American Family and USAA.

By City

Typically, drivers in larger cities pay higher auto insurance premiums. The higher costs are due to factors like congestion and accident and theft rates. In Minnesota, the state’s capital, Saint Paul, has the highest average annual rate of $2,740. Duluth is on the lower end with an average annual premium of $2,282.

By Age

In general, inexperienced drivers have higher auto insurance premiums. That means that, on average, teen drivers will have the highest auto insurance costs by far. In Minnesota, 16-year-olds can expect to pay more than double what most adult drivers pay for auto insurance.

By Credit Score

A few states have laws in place that prevent insurance companies from using credit scores to determine auto insurance rates; however, that is not the case in Minnesota. You should expect to pay less the higher (better) your credit score is.

By Violation

Any traffic violation or ticket may impact your auto insurance rate; however, the most serious charges result in the highest difference. A DUI, for example, increases auto insurance rates by 39 percent on average.

By Gender

While not one of the most important rating factors, gender can also impact your car insurance rates in Minnesota. Female drivers pay slightly more on average than male drivers, but the difference is slight.

We found the cheapest auto insurance providers in Minnesota, depending on your circumstances.

*After USAA

Minnesota requires drivers to carry auto insurance at all times. It’s a cost you cannot avoid, but even so, there are some basic ways to get the best deal on auto insurance:

1. Look for discounts. Most auto insurance companies have a slate of discounts to reduce the cost of your policy.
2. Bundle policies with the same company. Typically, you get the steepest discount from using the same provider for both your auto insurance and property insurance.
3. Comparison shop. Check the market during each renewal period to ensure you’re getting the best deal.
4. Raise your deductibles. If you need to pay less per month and have full coverage, you can always raise your deductibles. This means you’ll pay more out of pocket before your policy kicks in.
5. Lower your coverage limits. As long as you drive with at least the minimum legally required insurance coverage, reducing coverage won’t impact your ability to drive, but it may increase your costs in the event of an accident.

Minnesota requires the following auto insurance minimums:

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

Minnesota is a no-fault state. If you cause an accident, you are responsible for the other party’s property damage, but not their medical costs. Each party pays their own medical costs through their PIP coverage.

The Minnesota No-Fault Automobile Insurance Act requires residents and nonresidents to maintain basic economic loss benefits and liability coverage (also known as PIP) on vehicles if registered, licensed, or principally garaged in Minnesota. The law also applies to nonresidents who drive owned vehicles within the borders of Minnesota.

Minimum no-fault coverage is $40,00 — $20,000 is allowed for medical expenses, and $20,000 can be used for non-medical expenses.¹ You must make claims within six months of an accident.

An SR-22 is a certificate of financial responsibility confirming you hold the minimum required auto insurance coverage. If you drive without proof of insurance or are convicted of a DUI, you may need high-risk auto insurance.

Minnesota requires drivers to submit a certificate of insurance to the Commissioner of Public Safety to reinstate revoked driving privileges or registration. If you do not have a vehicle, you must be named a driver on an existing insurance policy or purchase non-owner insurance.²

Two of the most significant factors in high auto insurance rates in Minnesota are age and driving record. Teens and drivers with an at-fault accident or DUI on their record should expect to pay much more than the average driver in the state; however, discounts and shopping around will get you the best deal.