Average Car Insurance Cost in Minnesota

Let’s look at how insurers in the North Star State determine premiums, why the average auto insurance policy in Minnesota is cheaper than the national average, and how you may be able to even out your rates to land in the ballpark of the state average.

The average cost of car insurance in Minnesota is about $1,550 annually for a full coverage policy or about $775 for a minimum coverage one. Generally, the state average acts as a range for insurers to base their premiums on. Some drivers may see their premiums within the range of the state average, while others may see theirs far outside of it, depending on a few of their characteristics.

Premiums are subjective based on the driver, policy, and state. While your neighbor may pay rates around the state average, you may pay far more or less. Insurers use several factors about each driver to determine their rates, like one’s driving record, insurance history, age, gender, and ZIP code, among other factors. 

When insurers look at these factors, they assess each driver’s risk of filing a claim. If a driver is considered high-risk, whether that’s because they live in a densely populated ZIP code or have a poor driving record, insurers will compensate for the risk by charging these drivers higher premiums. Drivers with a poor driving record or insurance history will often pay above-average premiums, especially if they have a history of driving without insurance or have an active SR-22 on file. 

While Minnesota is one of the cheapest states for auto insurance, some drivers may not have room in their budgets for a full coverage policy with a premium that costs $1,550 annually, let alone one that costs double that if the driver is high-risk. 

While a full coverage policy is preferential, a minimum coverage policy that just meets the state’s minimum requirements is better than no policy at all. Plus, a liability-only policy is often the cheapest policy in the state. It’s essential to note that premiums ebb and flow over time, so while they may be expensive for a period of one’s life, they won’t be that way forever.

In Minnesota, automobile insurance is relatively inexpensive, with the average full coverage policy costing about 10% less than the national average. Since full coverage policies are on the cheaper end of the spectrum, many Minnesotans opt for these policies instead of minimum coverage ones, as they offer far more protection for policyholders and their passengers. 

While many residents of the North Star State opt for full coverage policies, especially from one of the top insurers in the state, it’s important to ensure the type of policy you select aligns with what you value most when it comes to your policy. 

Typically, drivers must choose between cost and coverage when deciding what type of policy to bind. Those who value cost over coverage generally bind a minimum coverage policy from an insurer that offers below-average base rates. Those who value coverage over cost will likely opt for a full coverage policy from an insurer that offers a range of optional coverage types they can add to their policy.

Those who value cost and coverage equally will find a compromise between the two with a full coverage policy from an insurer that offers lower-than-average base rates and plenty of opportunities for stackable discounts. 

While a full coverage policy may be the better option for many drivers, selecting the policy that makes the most sense for your lifestyle and budget is essential. If the premium on a full coverage policy will tank your savings, maybe a minimum coverage policy will be a better choice. Carrying at least the minimum amount of coverage required by state law is essential – driving without Minnesota automobile insurance is illegal.

Auto insurance laws in the state require drivers to have at least $30,000 in bodily injury liability per person, $60,000 in bodily injury liability per accident, $10,000 in property damage liability per accident (30/60/10 liability coverage), $25,000 in uninsured and underinsured motorist bodily injury coverage (UMBI/UIMBI) per person, $50,000 in UMBI/UIMBI per accident (25/50 UMBI/UIMBI), and $40,000 in personal injury protection (PIP), because of the state’s no-fault laws.

A driver is considered adequately insured as long as a minimum coverage policy meets those requirements. However, drivers may find that a minimum coverage policy doesn’t offer quite enough protection, especially when it comes to the policyholder’s property damage. A full coverage policy can include coverages like collision coverage, comprehensive coverage, or gap coverage to protect the policyholder in such instances.

In Minnesota, car insurance rates vary depending on the driver but fall at about $1,550 annually for a full coverage policy. Since a minimum coverage policy generally has about half the amount of coverage, the average minimum coverage policy costs about $775 annually.

It’s crucial to remember that a premium isn’t the only thing policyholders must pay for when it comes to their policies. Drivers also need to make sure they save for their deductible or the amount they’ll have to pay out of pocket after filling a claim before they can invoke their coverage. 

Generally, a policy with a high deductible will have a lower premium, and a policy with a low deductible will have a higher premium.

The cost of car insurance in Minnesota is determined by a few factors. Generally, auto insurance rates are determined based on the tendencies of a state’s population. Most commonly, a state’s population, population density, and population of uninsured drivers significantly impact the average auto insurance rates. 

States with a high population or population density generally see an above-average number of drivers on the road, increasing the likelihood of accidents and drivers filing claims. The same applies to states with a high number of uninsured drivers, as they place a significant burden on a state’s legal and insurance systems. 

Another factor that can affect a state’s average auto insurance rates is its fault laws. The North Star State is a no-fault state, and every driver must carry a minimum limit of PIP. While Minnesota maintains average rates below the national average, many no-fault states have above-average rates because PIP is a costly coverage for drivers to carry.

Whether you’re on the hunt for a policy or just curious about Minnesota rates, the best way to select a policy is to get and compare quotes online. By getting and comparing quotes online, drivers can make the most informed decision about their policies and find one that best suits their needs and budgets.

Luckily, you’ve come to the right place for quotes. Here at Clovered, we have a free quoting tool you can use to access and analyze your quotes in minutes. If you prefer to chat with a professional, you can contact one of our licensed agents at 833-255-4117 or agent@clovered.com.