Car insurance rates vary widely from one insurer to the next, which is why shopping around and comparing estimates is so important. To help drivers find cheap car insurance quotes in Minnesota, NerdWallet researched the three lowest premiums in the state for a variety of motorist types.
Below you’ll find the cheapest rates for:
- Good drivers
- Young drivers
- Families with a teen driver
- Drivers with poor credit
- Drivers with one at-fault accident
- Retired drivers
Cheapest for good drivers
For drivers with no at-fault accidents, DUIs or moving violations; range of average prices: $1,141 to $5,368 a year
price
- $1,141/year
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- $1,149/year
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- $1,345/year
The average price for good drivers among the three cheapest insurers was $1,212 per year. Although American Family and Western National both scored lower prices than State Farm, their service area is much smaller. Drivers may end up having to switch companies if they move away from Minnesota. All three companies offer a wide selection of discounts, with State Farm holding a slight edge in this category.
Cheapest for young drivers
For drivers in their early 20s; range of average prices: $888 to $3,771 a year
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- $888/year
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- $955/year
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- $961/year
Young drivers in Minnesota often have fewer coverage needs than drivers with families or valuable assets to protect. As a result, they can get some of the most affordable rates in the state. All three of the cheapest companies in our study offer similar discounts to help drivers save even more. Auto Owners Insurance Co. has the largest service area, which could make the difference for shoppers who don’t want to be forced to switch insurers if they move states.
Cheapest for families with a teen driver
Based on middle-aged couples with one teen driver; range of average prices: $2,448 to $14,723 a year
price
- $2,448/year
price
- $2,579/year
price
- $3,181/year
Teen drivers bring added accident risk to their parents’ policy, which usually translates to higher-than-average quotes. The good news is there’s still plenty of room to save by shopping around — this category had the widest range of average prices of any we sampled. Roughly $12,000 separated the lowest and highest rates, so it definitely pays to stay patient and compare prices. American Family and State Farm both have dedicated hubs on their site for teen driver statistics, tutorials, promotions and more, which could be attractive to parents who take a hands-on approach to their child’s driving.
Cheapest for drivers with poor credit
For drivers placed in the lowest credit tier as determined by the industry; range of average prices: $1,027 to $5,368 a year
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- $1,027/year
price
- $1,911/year
price
- $2,004/year
Car insurance companies often charge more for drivers with poor credit. Minnesotans with poor credit may not be dinged as badly as others around the country. Our research showed surprisingly affordable rates from Travelers: nearly $900 a year lower on average than the next closest competitor. Minnesota law prohibits insurers from canceling a current car insurance policy because of poor credit.
Cheapest for drivers with one at-fault accident
Range of average prices: $1,149 to $6,868 a year
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- $1,149/year
price
- $1,590/year
price
- $2,088/year
An at-fault accident can be grounds for an insurance company to raise drivers’ rates, but Minnesotans can find relatively affordable quotes even with a blemish on their record. The lowest average quote we found for this group — $1,149 a year from Western National — was only $8 more than the lowest average price for drivers of the same age with a clean record.
Cheapest for retired drivers
Based on drivers in their mid- to late 60s who no longer use their car for commuting; range of average prices: $865 to $4,529 a year
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- $865/year
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- $1,002/year
price
- $1,072/year
Retired drivers, given their experience and low usage, can score relatively cheap car insurance in Minnesota. In fact, the three cheapest options for retirees were all lower than the three cheapest for good drivers half their age. However, we also found quotes as high as $4,500 for the same policy, proving that even retired motorists can get burned with pricey rates if they’re not diligent about shopping around.
Minimum car insurance requirements in Minnesota
The Land of 10,000 Lakes has relatively extensive car insurance requirements. Drivers must carry liability insurance, uninsured/underinsured motorist (UMBI/UIMBI) coverage and personal injury protection (PIP) in the following amounts:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $10,000 property damage liability per accident
- $25,000 UMBI/UIMBI per person
- $50,000 UMBI/UIMBI per accident
- $40,000 PIP
For the most accurate auto insurance quotes in Minnesota, keep your required and optional coverages identical when comparing prices. Visit NerdWallet’s guide to state car insurance requirements for more detail on what these mandatory coverage levels mean, and how and when your policy kicks in.
Alternative car insurance in Minnesota
Minnesotans who’ve been denied car insurance on the open market within the past 60 days can apply for coverage through The Minnesota Automobile Assigned Risk Plan (MNAIP). This network of insurers was established to help high-risk drivers secure coverage at established price levels.
For even more help finding cheap car insurance quotes in Minnesota, try NerdWallet’s anonymous comparison tool to possibly save hundreds.
Methodology
For most categories, NerdWallet averaged rates from the largest insurers for 30-year-old men and women in 10 ZIP codes and with 100/300/50 liability insurance limits, 100/300 uninsured motorist coverage limits and $60,000 personal injury protection (PIP). We used a 2012 Toyota Camry in all cases.
To test rates for families with teen drivers, we used a 46-year-old female and 47-year-old male with a 16-year-old son. Our sample retired driver was 67 and drove 50% fewer annual miles than other groups. Our sample young driver was 22 and carried the minimum required coverage levels. The range described includes quotes retrieved by NerdWallet from the eight largest insurers in the state. Your own rates will be different.
Alex Glenn is a staff writer for NerdWallet, a personal finance website. Email: aglenn@nerdwallet.com.
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