Cheap car insurance MN is easy to find if you know where to get quotes. On average, drivers spend around 12% less than the national average, making car insurance in the state affordable for most. The average annual cost is $1,463 per year or about $122 per month for full coverage. If you choose just the minimum coverage, you will pay an average of $548 per year, though rates can go as low as $259 annually.
The main factors determining insurance rates in Minnesota are age, credit score, and driving record. Gender and marital status can affect rates with some insurers though it is at a much smaller level.
Minimum Coverage Requirements in Minnesota
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Drivers in Minnesota must carry minimum insurance coverage to drive a vehicle in the state legally. Failure to have the proper insurance may result in the suspension of your driver’s license or plates. Minnesota requires that you carry at least:
- $30,000 per person and $60,000 per accident for bodily injury liability
- $10,000 property damage liability
- $25,000 per person and $500,000 per accident uninsured motorist coverage
- $40,000 personal injury protection
Cheapest Car Insurance in Minnesota by Age
One of the primary factors that determine your insurance rates is your age. Since younger drivers have less time on the road and are less experienced, they will pay the highest rates. Rates for full coverage for 20-year-olds range from $1,500 per year to $2,300 per year on average, with American Family and Farm Bureau Financial Services boasting the lowest rates.
When drivers hit the age of 30, they will see a significant drop in their insurance rates, with full-coverage rates ranging from $850 per year to $1,300 per year on average. Rates for 40-year-olds are similar to rates for 30-year-olds.
Drivers that get the best rates are those in their 50s with average full-coverage prices ranging between $750 and $1,200 with minimum coverage running an average as low as $250. Rates for 60-year-old drivers will be slightly more than those for 50-year-olds, though they average only about $20 more per year.
Cheapest Minnesota Insurance for Poor Credit
Your credit score can also affect your insurance rates in Minnesota. Insurance companies use credit scores when calculating rates as statistics show that those with poor credit scores report more claims and tend to have higher-dollar claims than those with good-to-excellent credit.
Drivers with poor credit scores will pay an average of $500 to $800 more per year for insurance than those with excellent credit scores. Two companies in Minnesota that offer the cheapest rates for those with poor credit are Farm Bureau Financial Services and North Star.
Cheap Car Insurance MN for Those With Poor Driving Records
Your driving record is another significant factor that affects your car insurance rates in Minnesota. Two driving record issues that increase rates the most are at-fault accidents and DUIs. One at-fault accident can raise your rates an average of $200 to $400 per year for two to three years. After a few years, your rates should go down if you have no more at-fault accidents. American Family and Farm Bureau Financial Services offer the best rates for drivers with one recent at-fault accident.
DUIs also can have a significant effect on your car insurance rates. One DUI charge will cause an average rate increase of $600 to $900 per year and affect your rates for up to five years. Farm Bureau Financial service and American Family offer the best rates for those with a DUI on their record.
Car Insurance for Military Families
If you are in the military, a spouse of a military member, or a military dependent, you may qualify for lower rates from certain insurance companies, such as USAA. USAA is not available to the general public and only covers military members, veterans, and dependents. They offer highly competitive rates and other benefits to assist military families.
Alternative Insurance
If you have significant infractions or your driving record, many moving violations, or a lot of at-fault accidents, it may be difficult to obtain insurance in Minnesota. If you are denied insurance in the state, you can apply for coverage through the Minnesota Automobile Insurance Plan. Here you will find a network of insurers willing to take on higher-risk drivers.
Tips for Obtaining Cheap Car Insurance NM
With so many insurers and options, it may be hard to navigate insurance coverage. While you want to ensure that you have the coverage, you need to ensure you are adequately protected. You also want to get insurance at a price you can afford. Luckily, you can do a few things to help obtain cheaper insurance in Minnesota.
Compare Prices
Look at coverages and rates from local, regional, and national companies to find the best rates for the coverage you want. Typically regional companies will have much lower rates than national companies, making them worth looking into.
Choose the Right Coverage and Deductibles
Liability insurance in the state is required, but collision and comprehensive are not. These options may not be worth the cost if you have an older vehicle. If you do not drive a lot, you may also want to consider usage-based coverage, which provides lower rates for drivers with less annual mileage.
Another consideration to make is your deductible. A higher deductible will mean a lower annual rate. Just make sure you will be able to cover the deductible if a collision occurs.
Look for Discounts
Many insurance companies offer a wide range of discounts. You can get discounts for good students, for having multiple cars on the policy, for having multiple policies, and even for going paperless. Find out which discounts you qualify for and how much they may save you each month.
Keep an Eye on Your Credit Score
A credit score does play a significant role in your insurance rates, sometimes more than your driving record. If you have a lower credit score, consider using credit monitoring software that can provide suggestions on ways to boost your score.
While Minnesota has insurance rates less than the national average, it is still important to shop around and find the best rates and coverage options you need to fit your lifestyle and budget.

At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.