The best cheap car insurance in Minneapolis

cheap car insurance

The average cost of auto insurance in Minneapolis, Minnesota is $1,980 per year with full coverage or $152 per month. Minimum coverage auto insurance costs an average of $725 per year or $60 per month. While auto insurance in Minneapolis is on par with the national average, drivers can find even cheaper rates while staying financially protected in the event of an accident.

As part of determining the best auto insurance in Minneapolis, Bankrate's insurance editorial team evaluated the cheapest auto insurance companies in the area by average premium and available coverage and discounts. We found that American Family and State Farm offered some of the cheapest average rates in Minneapolis for full coverage auto insurance, but they may not be the right companies for everyone. To find the best cheap car insurance for you, it may help to start with Bankrate's curated selections.

The best cheap car insurance companies in Minneapolis

Bankrate arrived at its options for the cheapest car insurance in Minneapolis, Minnesota by looking at the average annual car insurance premiums from Quadrant Information Services. Based on our findings, American Family, State Farm, and USAA offered some of the cheapest auto insurance policies for minimum and full coverage policies.

While price is important, it's also important to consider a carrier holistically. Bankrate's editorial team also reviewed each insurance company's available coverage options and discounts, financial strength ratings from AM Best, and customer satisfaction scores from J.D. Power. Industry-trusted third-party ratings help provide a more comprehensive view of how a provider performs on several important aspects, such as customer service and claims-paying ability. By collecting this information, we were able to assign each company a Bankrate Score (scored on a 5.0 scale) that reflects its overall performance across these categories and prices.

INSURANCE COMPANY BANKRATE SCORE J.D. POWER SCORE (CENTRAL REGION) AVERAGE ANNUAL PREMIUM FOR FULL COVERAGE AVERAGE ANNUAL PREMIUM FOR MINIMUM COVERAGE
American Family 4.3 848/1,000 $1,212 $631
State Farm 4.7 843/1,000 $1,293 $649
USAA* 4.9 879/1,000 $1,678 $615
Auto-Owners 4.5 821/1,000 $1,708 row4 col 5
AAA 3.8 838/1,000 $1,966 row5 col 5

*Not officially ranked with J.D. Power due to eligibility restrictions

American Family

American Family may be one of the best insurers to consider for drivers looking to switch companies, as it encourages switching policyholders to qualify for two stackable discounts. There are discount opportunities for customer loyalty, signing up early, and purchasing multiple types of policies. However, those who want a superior digital experience may need to consider other providers. In the 2022 Digital Experience Study of J.D. Power, American Family scored below average on digital service and purchases based on customer feedback.

State Farm

State Farm is a well-established and respected insurer distinguished by its easy-to-use website. Its digital presence provides a wealth of easily accessible information to help users create their own policy packages that meet their needs. As the cheapest full coverage provider on our list, State Farm could be a great option for those looking for reliable coverage at affordable prices. However, their minimum coverage policies average the second most expensive on our list, making them a less viable option for Minneapolis drivers looking for the lowest coverage allowed. State Farm offers several valuable options, including specialized programs designed just for teen drivers and coverage for vintage car collectors.

The United States to

USAA is only available to its members: active and retired military and their families. Due to its customer base, the company may be the best choice for military families looking for cheap auto insurance companies. There are even military-focused savings opportunities, like a discount for storing a vehicle on base. JD Power does not rank USAA in its customer satisfaction surveys, but it does rate the company. With a score of 879, 13 points higher than the ranked leader in the Central region, USAA customers clearly have a high level of satisfaction with the company's service. USAA offers a minimum annual coverage premium that is below the average annual premium in Minneapolis of $828.

Car Owners

The JD score Power of 821 from Auto-Owners places the company below average in the Midwest. But when it comes to car insurance rates, Auto-Owners offers car insurance rates below the average premiums in Minneapolis for minimum and comprehensive coverage. The company is particularly strong in its ability to tailor coverage to meet the needs of its customers, such as its Plus package, which offers more than 10 additional coverage options.

AAA

With the cheapest average minimum coverage policy on our list, AAA may be the best option for drivers looking for liability-only coverage. With it, Minneapolis drivers could save more than $400 per year. While there are no early signing discounts, there are several multi-policy discounts, including savings on auto and home packages. Plus, there are savings for driving well, providing up-to-date odometer readings, and keeping your AAA policy for at least a full year.

Minneapolis Insurance Requirements

Drivers in Minnesota are required to carry a minimum amount of car insurance if they own a car. In Minnesota, drivers must carry a minimum amount of bodily injury and property damage liability, uninsured motorist coverage, and personal injury protection. Below is a breakdown of car insurance requirements in Minnesota:

  • $30,000 bodily injury liability per person
  • $60,000 bodily injury liability per accident
  • $10,000 property damage liability per accident
  • $25,000 uninsured motorist bodily injury per person
  • $50,000 uninsured motorist bodily injury per accident
  • $25,000 underinsured motorist bodily injury per person
  • $50,000 underinsured motorist bodily injury per accident
  • $40,000 personal injury protection (PIP)

These coverage requirements for Minnesota drivers offer a basic amount of protection in the event of an accident. Bodily injury and property damage liability applies to the other party if you cause an accident. On the other hand, uninsured or underinsured motorist coverage typically applies when someone else causes an accident but their insurance isn't enough to cover your damages. As a no-fault state, Minnesota law also requires personal injury protection, which is intended to cover you and any passengers involved in an accident that resulted in the need for payment for issues such as medical expenses and lost wages.

Drivers in Minnesota can choose to purchase limits higher than state requirements for better coverage and can also add optional coverage. This includes comprehensive collision coverage that insures your vehicle if it's involved in an accident, as well as roadside assistance, car rental reimbursement, and more.

How to get and keep the cheapest car insurance in Minneapolis

Finding cheap quotes is an important part of narrowing down the cheapest car insurance options, but multiple factors go into helping you get the lowest price. Keeping the following tips in mind can help you find the cheapest company for you.

  • Note your coverage needs. Comparing average quotes is just the beginning. When comparing providers side by side, it's helpful to have an apple-to-apple comparison for the same amounts and types of coverage, including options like roadside assistance or full-glass repair. Each provider will quote a different amount, so knowing the coverage you need can help make your cheapest option clearer.
  • Reduce your risk. Carriers determine rates based on insurable risk, where the less risk you represent as an insured, the cheaper your rates will be. Staying accident-free, driving at posted speed limits, and avoiding unnecessary claims can go a long way in helping you achieve the lowest rate.

Frequently asked questions

What is the best car insurance company?

There is no single insurer that provides the best auto insurance coverage for everyone. Certain coverage options and discounts offered by one company may not match those offered by others. For this reason, many drivers decide to research multiple companies and get multiple quotes to compare.

How much car insurance do I need in Minneapolis?

The amount of auto insurance you need typically depends on a variety of factors, including your personal finances, level of risk, and the coverage you feel is necessary. Insurance professionals generally recommend purchasing higher liability limits beyond the minimum requirements to better protect your finances in the event of an accident. You can also purchase optional coverage, such as gap coverage, accident forgiveness, and other coverage if you want additional protection. Working with an agent can help you determine the best auto insurance amount for your needs.

How much does car insurance in Minneapolis cost?

Based on the most up-to-date premium data from Quadrant Information Services, the average cost of auto insurance in Minneapolis is $1,823 per year for a full coverage policy and $725 per year for a minimum coverage policy. Your individual rate may be higher or lower than the city average based on personal factors, such as the make and model of your vehicle and your driving history.

Methodology

Bankrate uses Quadrant Information Services to analyze 2022 rates for all zip codes and carriers in all 50 states and Washington, D.C. Rates quoted are based on a 40-year-old male and female driver with a clean driving record, good credit, and the following coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine the minimum coverage limits, Bankrate used minimum coverages that meet each state's requirements. Our sample drivers own a 2020 Toyota Camry, commute five days a week, and drive 12,000 miles a year.

These are sample rates and should be used for comparison purposes only. Your quotes may be different.


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