How to Find Cheap Car Insurance in Minnesota

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Whether you’re heading out to Minneapolis to catch a Vikings game or going about the suburban hustle in Bloomington, there are plenty of things to do in Minnesota if you have time and an adequate car insurance policy.

Finding an auto insurance policy that suits your lifestyle without breaking the bank can be tough but not impossible. Let’s see how to find the best insurer, policy, and premiums on your Minnesota car insurance policy without blowing your budget for a quarterly trip to the Mall of America. 

What’s Cheap Car Insurance in Minnesota?

While the North Star State requires more coverage than most, the state remains one of the cheapest in the country when it comes to full coverage policies. In fact, the average full coverage policy in the state costs about $1,550 annually, or about 10% below the national average of $1,670 annually.

In terms of auto insurance, Minnesota is actually cheaper than average, meaning it isn’t too hard to find an affordable auto insurance policy in the state. Generally, the cheapest policy money can buy will always be a minimum coverage policy, regardless of the insurer you bind with or the state you’re insured in. However, everything about auto insurance is highly subjective, from the policy to the premium, so while some drivers may pay below-average rates, others may not be so lucky.

In the North Star State, auto insurance laws mandate drivers to have at least $30,000 in bodily injury liability coverage per person, $60,000 in bodily injury liability coverage per accident, $10,000 in property damage liability per accident (30/60/10 liability coverage), $25,000 in uninsured or 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), since Minnesota is a no-fault state. 

Those who finance or lease their vehicles may be required to have comprehensive and collision coverages on their policies. 

How To Find the Cheapest Car Insurance in Minnesota

While cheap car insurance in Minnesota shouldn’t be too hard to find, considering the average premium on a full coverage policy is lower than the national average, having some tricks up your sleeve to maximize your savings can still be helpful. 

It’s essential to remember, too, that auto insurance rates are highly subjective, so rates that may be available to some drivers may not be available to others.

While a minimum coverage policy will almost always be the cheapest policy any driver can bind, it may not be the best option for every driver. In fact, many Minnesotans opt for full coverage policies over minimum ones as the average full coverage policy isn’t too expensive in the state. While a full coverage policy will typically cost more than a minimum coverage one, there are a few ways drivers can lower their premiums without losing out on full coverage.

Many insurers offer their policyholders the opportunity to lower their premiums with stackable discounts. Typically, discounts will fall into two categories: criteria or enrollment-based. Typically, criteria-based discounts just require policyholders to meet a set of standards. Enrollment-based discounts require policyholders to participate in their savings by taking a class or completing a task before they receive their discount. 

The most common criteria-based discounts are a multi-car discount for those who insure more than one vehicle on their policy, a bundling discount for those who purchase more than one insurance product through their insurer, or a good student discount for young drivers who earn good grades in school. 

Enrollment-based discounts, however, require a bit more participation from the policyholder. Generally, enrollment-based discounts are doled out based on the driver’s behavior behind the wheel. For example, many insurers offer a usage-based discount program, in which drivers use a telematics device to track and share their driving data with their insurers to receive a discount based on their good driving habits. 

Similarly, some insurers also offer a pay-per-mile discount program in which drivers track how much they drive in a period and pay for their coverage based on their mileage. Such a program is best for those who drive fewer than 12,000 miles annually.

Applying discounts to one’s full coverage policy is the best way to compromise on coverage and cost. While one may combine discounts on a minimum coverage policy to truly have the cheapest policy in the state, a minimum coverage policy may not offer enough coverage to be worth the savings. 

With several discounts applied to a full coverage policy tailored to a driver’s needs, drivers may get the most bang for their buck.

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Cheap Liability Car Insurance in Minnesota Explained

In Minnesota, cheap auto insurance isn’t too hard to find, but the cheapest policy will generally be a minimum coverage or liability policy. Since the average full coverage policy in the North Star State costs about $1,550 annually, and a minimum coverage policy contains about half the amount of coverage, the average minimum coverage policy in the state costs about $775 annually. 

A minimum coverage policy in Minnesota will contain 30/60/10 liability coverage, 25/50 UMBI/UIMBI coverage, and $40,000 in PIP, so calling it a liability policy is a bit inaccurate. Since the North Star State is a no-fault state, drivers must carry a bit more coverage than those in tort states. However, unlike other no-fault states, Minnesota keeps average premiums below the national average. 

Many of the state’s top insurers have full coverage policies with below-average rates and minimum coverage policies with even lower rates. While it may be tempting to forgo coverage altogether in the name of savings, it’s essential to maintain at least a minimum coverage policy, as driving without insurance in the Land of 10,000 Lakes is illegal

Those caught without an adequate policy may face severe legal penalties, like jail time, and significant insurance-related penalties, like needing an SR-22 or being classified as a high-risk driver. With such an infraction on their record, drivers may see higher-than-average premiums, even with a minimum coverage policy.

Who Has the Cheapest Auto Insurance in Minnesota?

Full coverage policies from insurers like State Farm, Geico, and Auto-Owners tend to be cheaper than those from other insurers. That said, the cheapest insurance in Minnesota won’t be the same for every driver, as rates are highly subjective and vary based on the driver. 

Insurers generally determine a driver’s premiums based on their risk of filing a claim. Insurers will use several factors to determine a driver’s risk of filing a claim, like one’s insurance history, driving record, ZIP code, gender, and age, among several others. This may explain why your rates hover around the state average, but your sibling in St. Paul pays much more for their policy. 

Drivers in densely populated cities tend to pay more for their policies, even with a clean driving record and excellent insurance history. While drivers who have a couple of characteristics working against them may see higher-than-average premiums, that’s not necessarily a sign to reduce one’s coverage. 

Instead, collecting quotes from several insurers and binding a full coverage policy with an insurer that offers low rates for high-risk drivers and plenty of discount opportunities may be the best option for those with above-average premiums. 

Is Car Insurance Cheaper in Minnesota?

Yes, it’s much easier for drivers to find affordable car insurance in Minnesota than in other states like its midwestern neighbors, Michigan and Missouri. While the North Star State is one of the cheaper states for auto insurance when compared to the national average, it isn’t the cheapest. 

Since Minnesota is a no-fault state, rates in the state may not be as low as they could be. No-fault states generally require drivers to carry a minimum limit of PIP, one of the most expensive coverages on the market. So, while rates in Minnesota may be closer to the national average than in some other states, it isn’t the cheapest state for auto insurance. 

Why Is Minnesota Car Insurance So Expensive?

While the lowest cost auto insurance in Minnesota may be in the triple digits, that can still take a significant toll on some drivers’ savings. Whether you’re searching for low-income car insurance in Minnesota or just looking to spend less on your policy to save more for your annual winter ice-fishing trip on Lake Superior, knowing how your premiums are calculated may help you deduce why they’re so expensive.

Typically, high-risk drivers pay more for insurance than drivers with clean driving records or spotless insurance histories. If you aren’t a high-risk driver but your premiums are still on the pricier end, you may have a high PIP limit. PIP is one of the most expensive coverages drivers can carry, and with a higher PIP limit comes a higher premium. 

How To Get Minnesota Auto Insurance Quotes

If you’re interested in getting the best auto insurance rates in Minnesota so you can put some extra cash toward your County Fair budget, the best way to find the right policy for your needs is to get and compare quotes online

By getting and comparing quotes online, you can make the most informed choice about your policy and hopefully get back to brainstorming what fun things you’ll do with all that extra cash.

Luckily, we’re quoting experts here at Clovered. We have a free quoting tool you can use to access and analyze your unique quotes so you can start saving as soon as possible. If you’d rather discuss your quote with a professional, contact one of our licensed agents at 833-255-4117 or

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The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.

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