Best Cheap Auto Insurance in Minneapolis, Minnesota (2023)

Minneapolis is the most heavily populated city in Minnesota, resulting in higher car insurance rates than most other cities in the state. With an average monthly rate of $210, insurance in the City of Lakes is also much more expensive than the national average of $139. How much you pay will depend on your age, marital status, driving history, coverage needs, and other factors.

State Farm, Auto-Owners, and USAA offer some of the cheapest car insurance in Minneapolis, with average monthly costs well below the city average. Here’s how to find the best cheap auto insurance in Minneapolis, Minnesota.

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Best car insurance companies in Minneapolis

The best car insurance companies in Minneapolis won’t be the same for every driver since each insurer has different criteria for determining rates. Factors that insurance companies use to set your rates include your age, gender, marital status, ZIP code, driving history, and even your credit score.

Not only will these factors vary from one driver to another, but each company weighs each factor differently. This is why it’s so important for consumers to shop around for the best car insurance for their needs. State Farm, Auto-Owners, and USAA each offer distinct benefits, and all have lower average monthly rates than the Minneapolis average.

Best insurer for cheap rates: State Farm

Best insurer for optional coverage: Auto-Owners

Best insurer for military members: USAA

Cheapest liability-only car insurance in Minneapolis

If you’re found at fault in an accident, liability-only car insurance will cover the cost of repairing or replacing the other party’s property and medical bills.

However, Minnesota is a no-fault state, so drivers in Minneapolis have to carry more than liability-only insurance. State law requires all Minnesota drivers to carry minimum levels of personal injury protection (PIP) insurance, which pays for the policyholder’s medical expenses after an accident, no matter who’s at fault.

Drivers also must carry uninsured and underinsured motorist insurance, which pays for your property damage if you’re in an accident with an at-fault driver without adequate insurance.

The following insurers offer the cheapest liability-only car insurance in Minneapolis:

Cheapest full-coverage car insurance in Minneapolis

Full-coverage car insurance generally refers to insurance that includes collision and comprehensive coverage on top of liability coverage.

Collision coverage will pay for physical damage to your car if you cause an accident, while comprehensive coverage pays to repair or replace your car after damage from something other than an accident.

“Comprehensive and collision are common types of car insurance coverage, though no state requires them,” says Loretta Worters, vice president of media relations for the Insurance Information Institute. “However, if you have a loan, your lender would require it.”

The following insurers offer the cheapest full-coverage car insurance in Minneapolis:

Car insurance requirements in Minnesota

Minnesota is a no-fault state, meaning each insurance company pays out for the medical costs of its own policyholder, regardless of who caused an accident.^[1] However, if a driver is at-fault in an accident, their insurance will pay for the other party’s property damage.

Because the North Star State follows no-fault rules, all drivers must carry personal injury protection, bodily injury liability, property damage liability, uninsured motorist coverage, and underinsured motorist coverage.^[2] 

The minimum requirements for each of these coverages are:

Drivers may purchase more insurance than the Minnesota requirements. That may mean increasing the dollar amount of coverage they carry for each type of required insurance or adding other coverages to their policy. The most common additional coverages are:

Collision coverage

This kind of insurance will pay for the damage to your vehicle if you cause an accident.

Comprehensive coverage

This insurance will pay to repair or replace your car if it’s damaged due to something other than an accident.

Medical payments coverage

Also known as MedPay, this covers medical bills for you and your passengers after an accident.

Cheapest car insurance for Minneapolis drivers with an incident

Whether you’ve received a speeding ticket, an at-fault accident, a DUI, or another moving violation, you can expect any negative traffic incident to affect your premiums. Insurance companies treat drivers with a history of such incidents as higher risk than drivers with clean records — even if the history is only a single instance.

Even if you don’t have a spotless driving record, you can still find affordable car insurance in Minneapolis. 

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Cheapest car insurance for drivers with a speeding ticket

Speeding may be common, even among drivers who consider themselves to be safety conscious, but that doesn’t change how dangerous it is. The National Highway Traffic Safety Administration found 31% of traffic deaths in 2020 in Minnesota were related to speeding.^[3]

This helps explain why insurers are so likely to raise your rates after a speeding ticket. If you’re a Minneapolis driver with a speeding ticket on your record, you can find the cheapest car insurance options from one of these insurers:

Cheapest car insurance for drivers with an at-fault accident

Accidents aren’t just stressful — they can also increase your car insurance rates. Insurance companies generally treat a driver with an at-fault accident as a greater insurance risk, which means the insurer will increase their rates or even drop their coverage, depending on the severity of the accident and the driver’s history.

The following insurers offer the cheapest car insurance for drivers with an at-fault accident in Minneapolis:

Cheapest car insurance for drivers with a DUI

Drivers who have been cited for driving under the influence may struggle to find affordable auto insurance. 

“If you have a DUI violation, your rate will go up,” Worters says. “Insurance companies may consider DUI drivers as riskier to insure or even refuse coverage.”

However, many insurers specialize in insuring drivers who can’t get standard insurance because of their driving history. If you have a DUI, you may need to turn to such an insurance company to get the coverage you need — and unfortunately, there’s not a whole lot you can do to reduce your rates post-DUI. 

“It takes time before you can see any rate reductions,” Worters explains. “Keep a clean record and take a driver education course.”

The following companies offer the cheapest car insurance for drivers with a DUI in Minneapolis:

Cheapest car insurance for Minneapolis seniors

Car insurance rates are highest for young drivers, but premiums tend to decrease for drivers around age 35. However, costs go up again about four decades later. Around age 75, many drivers begin to have slower reflexes and reaction times and often experience other physical declines that affect their driving. Insurers increase rates for older drivers to reflect this risk.

Senior drivers in Minneapolis will find the following insurers have the cheapest car insurance for their age group:

Cheapest car insurance for Minneapolis teens

Teenagers don’t have much driving experience, which can translate into riskier behavior behind the wheel. As a result, insurance companies charge the highest rates to teen drivers. That doesn’t mean teens (and their parents) are stuck with unaffordable premiums, though.

Here are several ways teenage drivers can help lower their insurance costs:

• Stay on their parents’ insurance policy. Though teens can technically get an insurance policy for themselves, it’s generally much cheaper to stay on a parent’s policy.

• Do well in school. Many insurers offer good student discounts to teen drivers who maintain a certain GPA.

• Drive a safe car. Safer cars are typically less expensive to insure. The Insurance Institute for Highway Safety has compiled a list of safe, practical, and affordable vehicles suitable for teen drivers.

Here are the cheapest car insurance companies for teen drivers in Minneapolis:

How to get the cheapest car insurance in Minneapolis

The cheapest car insurance in Minneapolis, Minnesota, will vary from one driver to the next. Each insurance company uses its own underwriting formula for determining your rates, and you’ll often receive different rates from companies for the same coverage. This is one reason why shopping around to find the cheapest rate is so important.

Here are some other strategies you can use to get the cheapest rates for the coverage you need:

• Adjust your coverage amount. Increasing your deductible, dropping comprehensive or collision coverage, or lowering your liability amounts will all reduce your premium rates. Just make sure you maintain enough coverage to protect yourself in the event of an accident.

• Ask about discounts. Your insurance company may offer discounts to help you reduce your costs. For example, insurers commonly offer discounts to consumers who bundle their homeowners insurance or renters insurance with their auto policy.

• Consider telematics. Many insurers offer drivers the chance to lower their rates in exchange for installing a telematics device that tracks their driving behavior. Safe drivers may be able to save big with these programs.

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Minneapolis car insurance quotes by credit tier

Minnesota allows car insurance companies to use your credit score to help determine your premium.^[4] While credit score isn’t the only factor used in underwriting to determine your insurance costs, insurers tend to give lower premiums to drivers with good-to-excellent credit and higher premiums to drivers with poor-to-fair credit.

The good news is that Minneapolis drivers can lower their car insurance costs by improving their credit. Here are the averages costs by credit tier in Minneapolis:

Is car insurance more expensive in Minneapolis?

Full-coverage car insurance in Minneapolis costs an average of $249 per month, while liability-only coverage costs an average of $171 per month. In contrast, the national average is $172 monthly for full coverage and $106 monthly for liability-only coverage.

Several factors help explain the difference in cost, including geographic location, population density, and crime statistics. For example, the high average annual snowfall in Minneapolis can affect driving risks and behavior, which can increase insurance rates.^[5]

More cities in Minnesota

Of the five largest cities in Minnesota, Minneapolis has the highest average cost for full-coverage auto insurance. Minneapolis residents pay an average of $249 per month for full-coverage car insurance — even its twin city Saint Paul has a lower average monthly price.

Minneapolis car insurance FAQs