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Last updated: March 26, 2024

Average Cost of Car Insurance in Minnesota

We’re here to direct you to the best auto insurance providers in the North Star State.

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Minnesota is the 12th largest state in the U.S., with auto insurance rates an average of 18 percent less than the rest of the country. Despite the relatively cheap cost of auto insurance in Minnesota, some drivers — especially teens and drivers with a poor record — may be surprised by how high their auto insurance premiums can get. We’ve developed these state guides to give you a realistic picture of the auto insurance industry where you live.

Average Cost of Car Insurance in Minnesota

Minnesota’s 3.4 million licensed drivers pay an average of $881 for auto insurance each year, according to the National Association of Insurance Commissioners’ annual report.1 The following factors affect policy costs in Minnesota:

  • Additional coverage
  • Age
  • Gender
  • Type of vehicle
  • Mileage
  • Driving record
  • ZIP code
  • Deductible
  • Discounts

By City

Typically, drivers in larger cities pay higher auto insurance premiums. The higher costs are due to factors like congestion and incident rates. In Minnesota, we found the small city of Aurora (population 1,679) had a higher average auto insurance rate than the five most populous cities in the state at $2,040.2 The state’s capital, Saint Paul, has an average annual rate of $1,802 and a population of 307,193

City Average annual cost of car insurance
Minneapolis $1,831
Saint Paul $1,802
Rochester $1,334
Bloomington $1,733
Aurora $2,040

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.

Age Average annual cost of car insurance
16 $3,910
17 $3,637
18 $3,970
19 $2,761
20s $2,541
30s $1,572
40s $1,578
50s $1,475
60s $1,390
70s $1,571

By Model Year

In Minnesota, it costs slightly more to insure a new car than an older one.

Model Year Average annual cost of car insurance
2012 $1,008
2022 $1,283

By Coverage Level

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

Coverage level Average annual cost of car insurance
Minimum $761
Full $1,660

By Credit Score

In some states, the law prevents insurance companies from using credit score 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.

Credit score Average annual cost of car insurance
Poor $2,861
Average $1,777
Good $1,530
Excellent $1,280

By Violation

Any traffic violation or ticket may impact your auto insurance rate; however, the most serious charges account for the highest difference. A DUI, for example, could double your auto insurance rate.

Driving history Average annual cost of car insurance
Clean driving record $1,520
Speeding ticket $1,946
Accident $2,332
DUI $3,069

By Company

We found that Iowa Farm Bureau had the lowest average annual auto insurance cost in Minnesota. Other affordable coverage options include State Farm and American Family.

Company Average annual cost of car insurance
State Farm $912
Iowa Farm Bureau $799
American Family $971
Nationwide $1,135
Auto-Owners $1,129
AAA $1,416
Travelers $1,268
GEICO $1,135
Allstate $1,614

Cheapest Car Insurance in Minnesota

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

Demographic Cheapest company Annual rate
Male teens State Farm $2,099
Female teens Auto-Owners $2,440
Military GEICO $1,557
Veteran GEICO $1,557
Clean record State Farm $1,048
After a speeding ticket State Farm $1,126
After an accident State Farm $1,204
After a DUI State Farm $1,126
Full coverage State Farm $1,089
Minimum coverage State Farm $480
Bad credit American Family $3,012
16 years old State Farm $3,036
17 years old State Farm $2,726
18 years old State Farm $2,470
19 years old USAA $1,631
20s State Farm $1,134
30s State Farm $1,027
60s State Farm $915

How to Save on Car Insurance in Minnesota

Like most states, Minnesota requires drivers to carry auto insurance at all times. It’s a cost you cannot avoid, however much you might like to. Even so, there are some basic ways to get the best deal on auto insurance:

  1. Look for discounts. Almost every auto insurance company has 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 auto insurance as your home insurance, renters insurance, or other policies.
  3. Comparison shop. Check the market during each renewal period to ensure you’re getting the best deal.
  4. Raise your deductible. If you need to pay less per month, you can always raise your deductible. 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.
  6. Buy your car without a loan. If you have a car loan, your lender may require additional coverage such as collision and comprehensive.

Minimum Car Insurance in Minnesota

Minnesota requires the following auto insurance minimums:

  • $40,000 personal injury protection (PIP) medical coverage per person per accident
  • $30,000 bodily injury liability for injuries to one person and $60,000 for two or more people
  • $10,000 property damage liability
  • $25,000 uninsured/underinsured motorist coverage for injuries to one person and $50,000 for injuries to two or more people3

Fault Law in Minnesota

Minnesota is a no-fault state. If you cause an accident, you are responsible for the other party’s property damage, not 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 (PIP) on vehicles if registered, licensed, or principally garaged in Minnesota. The law also applies to nonresidents on any owned vehicle driven within the borders of Minnesota. Minimum no-fault coverage is $40,000 available to each person in an accident: $20,000 for medical and $20,000 for non-medical expenses.4 You must make claims within six months of an accident!


No-fault laws usually do not apply to motorcycle or snowmobile accidents, as you must purchase separate insurance policies to cover these vehicles.

SR-22s or FR-44s

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 insurance5.


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.


We utilize a proprietary database of transactional data to determine which auto insurance companies transact with which types of consumers. We also consider demographic information and market research when determining the average cost of auto insurance per state.

Frequently Asked Questions

What is the cheapest car insurance company in Minnesota?

State Farm is the cheapest auto insurance provider, with an annual cost of $480 for a minimum coverage policy.

How much car insurance do I need in Minnesota?

You need at least the minimum required coverages in Minnesota, which are high enough to be a good foundation for many drivers. Consider adding comprehensive and collision coverage for new, inexperienced, or cautious drivers.

Does car insurance follow the driver in Minnesota?

Typically, car insurance in Minnesota follows the car and not the driver.

How long is the grace period after you purchase a car in Minnesota?

New residents have a 60-day grace period to register their cars, passenger vans, pickups, motorcycles, utility trailers, or house trailers in Minnesota.

Do I need uninsured motorist coverage in Minnesota?

Minnesota requires uninsured/underinsured motorist coverage under its no-fault auto insurance laws.


  1. 2020/2021 Auto Insurance Database Report. National Association of Insurance Commissioners. (2023, Jan).

  2. Aurora city, Minnesota. United States Census. (2024).,_Minnesota?g=160XX00US2702872

  3. Auto Insurance: What you need to know. Minnesota Department of Commerce. (2024).

  4. Auto Insurance Basics. Minnesota Commerce Department Insurance. (2024).

  5. Insurance Certification. Minnesota Department of Public Safety. (2024).