Jessica Fox Last Updated On: August 16, 2023

Driving in The North Star State

Drivers in Minnesota are no strangers to the dangers of icy winter roads. Even the most competent driver can easily find themselves in a collision with the right conditions. 

The threat of winter accidents is just one of the reasons why carrying car insurance is vital for Minnesota drivers. Car insurance protects yourself and your wallet from all the unpredictability of our roads. 

This article contains every single piece of information you should know about Minnesota auto insurance so that you can make the right choices, save money, and feel safe.

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Table of Contents

Types of Car Insurance Coverage in Minnesota

Some people have long commutes to work, while others use their vehicle for their business. Some prefer to keep their vehicle parked, and others plan on taking long road trips.

Because no two drivers are the same, neither are insurance policies. There are plenty of coverage options available to consumers to suit each driver’s individual wants and needs. 

Minimum Coverage in Minnesota 

Like the rest of the 50 states, Minnesota has a unique set of minimum coverage requirements. These requirements describe the absolute bare minimum amount of insurance that every driver in the state is required to carry by law.

In Minnesota, drivers must carry:

  • Liability Coverage
    • For legal fees related to bodily injuries to another party in the event of an at-fault accident. 
    • Minimum limits:
      • $30 000 per person for bodily injury
      • $60 000 per accident for bodily injury
      • $10 000 per accident for property damage 
  • Uninsured/Underinsured Motorist Coverage 
    • For expenses that another party’s insurance should cover but does not as their coverage is insufficient. 
    • $25 000 per person for bodily injury 
    • $50 000 per accident for bodily injury 
  • Personal Injury Protection (PIP)
    • For expenses that result from personal injuries resulting from an accident
    • $20 000 per person for medical expenses 
    • $20 000 per person for economic loss

Failure to carry the minimum Minnesota car insurance coverage is illegal and will result in significant legal and financial penalties. 

Additional Coverage Options in Minnesota 

Minimum coverage is just what it says: the minimum. 

Insurance experts (such as us at ConsumerCoverage) recommend carrying at least comprehensive and collision coverage in addition to the minimum coverages. 

A policy that contains comprehensive and collision coverage is sometimes called a “full coverage” or “standard coverage” policy. Alongside the minimums, standard coverage polices will include:

  • Collision Coverage for damages resulting from a vehicular collision. 
  • Comprehensive Coverage for damages resulting from other factors such as vandalism or weather. 

Full coverage policies are great because they offer stronger protection while still being affordable.

Here’s some other useful coverages available that might be worth considering:

  • Loan/Lease Payoff for the expense of paying off a loan or lease after making a claim. This coverage takes into account the depreciated value of a vehicle after it is initially purchased. 
  • Rental Car Reimbursement for the expense of renting a vehicle while your own is either being repaired or replaced. 
  • Roadside Assistance for additional services you may need while on the road such as a jump start or tire change. 

Obviously, the best-case-scenario is to secure the most coverage at reasonable price. Keep reading to learn about finding all-encompassing yet low-cost car insurance in Minnesota.

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Average Cost of Car Insurance in Minnesota

So, just how much is car insurance in Minnesota?

Here’s the average annual prices:

  • $1310 for a full coverage policy 
  • $493 for a minimum coverage policy 

You want some good news? The average cost of auto insurance in Minnesota is over 10% below the national average! And you know what’s even better? Minnesota was one of the few states whose car insurance prices decreased since last year! 

Affordable Minnesota car insurance is actually quite easy to find. 

But, keep in mind that the average price does not necessarily describe what all people can expect to pay for their car insurance. This is because price is determined based on several variables including:

  • Age 
  • Gender
  • Credit score
  • Driving history 
  • Claims history 
  • Policy type 
  • Deductible size 

All of these factors can affect your price in a drastic way. For instance, teen drivers pay an average of $3390 per year because they lack the experience of older drivers. And drivers with a DUI can expect to pay about $1800 more than the state average. 

Instead of using the average as a fixed figure, try to understand it as a sliding scale that adjusts based on surrounding circumstances. 

Still, it’s useful to know where the standard baseline is so that you can compare your Minnesota auto insurance quotes effectively.

Average Price of Auto Insurance in Minnesota by City

Location also plays a large role in determining the cost of insurance premiums. This is because different places have distinct statistics that differentiate their risk. For example, a city with a dense population and more accidents reported will cost more than a smaller city without. 

Here’s some average prices of Minnesota’s top cities:

  • Rochester – $1541  
  • Duluth – $1629 
  • Saint Paul – $1732 
  • Bloomington – $1739 
  • Minneapolis – $1949

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Best Insurers in Minnesota

If you want to find the cheapest car insurance in Minnesota, it’s vital that you get and compare multiple quotes from as many different insurers as possible. By exploring all of your options, you can find the best deal available to you.

You should start by getting a quote from the following insurance companies because they are known to be some of the most qualified and affordable providers in-state: 

  • USAA
  • Shelter Insurance 
  • Farmers
  • State Farm 
  • American Family

Tips for Saving on Minnesota Car Insurance

There are so many ways to get cheap auto insurance in Minnesota, and we’re going to share them all with you. Right now! 
  • Compare Quotes Annually: we already advised you to compare multiple Minnesota car insurance quotes, but you shouldn’t just do this once. Every year you should explore your options again because there could very well be a new, better deal. 
  • Inquire About Discounts: insurance providers have to stay competitive with each other in order to drive business. To do so, they often offer discounts for things like veteran services, safe-driving courses, and even signing up online. See what discounts you could qualify for with your provider. 
  • Bundle Policies: often insurers will give you significant discounts if you bundle multiple insurance policies together. So, this could mean having multiple vehicles on one policy, or it could mean combining your homeowner’s insurance with your auto insurance. Depending on your needs, bundling could save you heaps. 
  • Drive Safely and Reduce Risk: The lower your risk factor, the lower your premiums. And the best way you can lower your risk, is by practising safe driving because this keeps your record squeaky clean. You can also reduce risk by driving less often or purchasing safety features on your vehicle. 
With these tips, cheap car insurance in Minnesota is even closer than Canada!

Consult the ConsumerCoverage Experts

Fair warning, we’re about to brag; but only because we’ve earned the right to. 

Through years of training and experience, our team of insurance advisors has a wealth of knowledge about insurance. We can help you with any questions or queries you may have, just reach out! 

You can also access more of our free online resources through our website. 

And get access to free car insurance quotes in Minnesota today!

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