Best, Cheap Minnesota Car Insurance

If you're a Minnesota state driver, you'll pay an average of $92 a month. We can help you find the cheapest quote.

See Your Rates

Minnesota drivers looking for the cheapest car insurance should start by getting quotes from Farm Bureau, USAA and State Farm, if possible. After surveying companies that serve the North Star State, we found these three are the best options for cheap auto coverage. Each offers auto insurance rates that are cheaper than the state average of $92 a month for minimum coverage and $178 for full coverage.

We recently looked at the premium cost, policy offerings and customer satisfaction scores of the biggest car insurance companies operating in Minnesota to help you get your best, cheapest quote.

We will cover

How much does car insurance cost in Minnesota?

Minnesota car insurance costs an average of $92 a month if you get the minimum amount of coverage the state requires. This is 5% higher than the national average rate of $87 a month. Minnesota's average full coverage rate of $178 a month lines up with the national average.

Average car insurance rate by region
Region Minimum coverage Full coverage
U.S. $87 $178
Minnesota $92 $178
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Minnesota's high car insurance rates are largely due to it being a no-fault state. This means that no matter who is responsible for an auto accident, all drivers involved can file claims with their own insurance providers to cover their own injuries and damages. Insurance providers will raise their rates in order to cover this extra cost. Other factors that can affect your auto insurance quote are:

  • The age of your car
  • How expensive it is
  • Your personal insurance claim history

Who has the cheapest car insurance in Minnesota?

We looked at the seven most popular car insurance companies underwriting in Minnesota and found USAA to have the cheapest average rate for minimum coverage at $38 a month. Farm Bureau has the cheapest average full coverage rate of $69 monthly.

Cheapest minimum car insurance in Minnesota, by rate
Minimum coverage Monthly
USAA $38
Farm Bureau $40
State Farm $50
American Family $58
Allstate $92
MN Average $92
GEICO $101
Auto Owners $150
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.
Cheapest full coverage car insurance in Minnesota, by rate
Full coverage Monthly
Farm Bureau $69
USAA $92
State Farm $94
American Family $105
Allstate $178
MN Average $178
GEICO $204
Auto Owners $299
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Minnesota's best car insurance companies

USAA, Farm Bureau and State Farm stand out as the best insurers in Minnesota. Here's why:

USAA: Cheapest rates and best for military veterans

USAA's average auto insurance rate of minimum coverage in Minnesota is $38 a month. The downside of USAA is that it only offers car insurance for military personnel and veterans. If you're not in the military, Farm Bureau is your best bet.

However, if you're one of the more than 327,000 veterans living in Minnesota, you can take advantage of USAA's "best-of-the-best" customer service. In J.D. Power's 2021 U.S. Auto Insurance Study, USAA received a score of 909 out of 1,000. USAA is rated in the study but not counted in J.D. Power's annual ranking due to the provider only offering coverage to military personnel. USAA would rank at the top, otherwise.

Farm Bureau: Second-cheapest rates and best customer satisfaction

Farm Bureau has the next cheapest average minimum coverage auto insurance premium in Minnesota at $40 a month, 19% lower than the state average. They have the top cheapest full coverage rate in Minnesota at $69 a month, 61% cheaper than the state average rate of $178.

Farm Bureau also offers excellent customer satisfaction. It received a 0.04 rating on the National Association of Insurance Commissioners (NAIC) complaint index. This rating shows an insurance company's ability to deal with claims-oriented problems such as claim filing issues and payouts. The national average complaint index score is 1.0, and the lower the score, the better.

State Farm: Most used

State Farm's minimum coverage auto insurance rate is $50 a month, 46% cheaper than the state average rate of $92 a month. State Farm's average full coverage rate is $94 a month, 47% less than the Minnesota state average.

On top of that, it also is the most popular car insurance provider in the state. According to the Insurance Information Institute, State Farm had a 16.2% market share of the national auto insurance industry in 2021.

State Farm's high regard comes partly from its reputation. In J.D. Power's 2021 U.S. Auto Insurance Study, State Farm held a rating of 892 out of 1,000, higher than the national average of 880. This rating is based on factors including billing and claim process, customer service and policy offerings.

Minnesota car insurance requirements

Minnesota law requires drivers to carry the following liability car insurance limits:

  • Bodily injury per person: $30,000
  • Bodily injury per accident: $60,000
  • Property damage liability per accident: $10,000

Due to being a no-fault state, Minnesota drivers are also required to carry the following amounts of personal injury protection (PIP) and uninsured/underinsured motorist insurance:

  • Personal injury protection: $40,000
  • Uninsured motorist insurance per person: $25,000
  • Uninsured motorist insurance per accident: $50,000
  • Underinsured motorist insurance per person: $25,000
  • Underinsured motorist insurance per accident: $50,000

While these limits fulfill state legal requirements, they shouldn't be considered adequate protection. If you were responsible for a major accident, chances are minimum coverage would not cover serious injury or replacement of a totaled car. Any costs beyond the limits of your policy would have to be paid out of your pocket. To avoid this financial peril, we recommend you raise your liability coverage limits to:

  • Bodily injury per person: $100,000
  • Bodily injury per accident: $300,000
  • Property damage liability per accident: $100,000

Methodology

We used Quadrant Information Services to generate thousands of car insurance quotes from every ZIP code in Minnesota from the following providers:

  • Allstate
  • American Family
  • Auto Owners
  • Farm Bureau
  • GEICO
  • State Farm
  • USAA

Our sample driver is a 35-year-old male with a clean record who drives a 2012 Honda Accord LX 13,500 miles per year.

Car insurance by city

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