Average car insurance cost in Minneapolis, Minnesota

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Based on our data, Minneapolis drivers pay an average of $3,235 annually for car insurance. It’s $674 more than the Minnesota state average and $722 more than the national average.

Insurance rates can differ significantly depending on where you live. Factors like population density, accident rates and theft statistics all play a role in determining premiums. As a result, drivers in some ZIP codes pay higher premiums.

Understanding how car insurance rates in Minneapolis stack up against state and national averages can help you make informed decisions. We’ll walk you through local trends, rate changes and how to save on your premiums.

Cheap car insurance companies in Minneapolis

Travelers offers the most affordable full coverage car insurance in Minneapolis, at $1,970 annually, with coverage limits of $100,000 in bodily injury per person, $300,000 total per accident, and $100,000 for property damage.

Auto-Owners offers the second-lowest rate in Minneapolis, with an average yearly premium of $2,286.

Car insurance rates vary by company because each insurer uses its own method to assess risk and determine premiums. That’s why it’s smart to compare quotes from different providers to find coverage that fits your needs and budget.

The following table compares average yearly and monthly car insurance costs from different companies in Minneapolis.

Read about the best car insurance companies.

Average car insurance cost in Minneapolis by coverage limits

Here’s a breakdown of average car insurance rates in Minneapolis by coverage type.

• State minimum coverage: $938 per year (limits are $25,000 bodily injury liability per person, $50,000 total bodily injury liability per accident and $25,000 property damage liability per accident).
• Liability only coverage: $1,013 per year (limits are $50,000 bodily injury liability per person, $100,000 total bodily injury liability per accident and $50,000 property damage liability per accident).
• Full coverage: $3,235 per year (limits are $100,000 bodily injury liability per person, $300,000 total bodily injury liability per accident and $100,000 property damage liability per accident).
• Non-owners coverage: $401 per year

While liability insurance is required in nearly every state to drive legally, the minimum coverage limits differ by state. This coverage protects you financially if you’re responsible for injuring someone or damaging their property in a crash.

Minimum liability insurance only covers damage or injuries you cause to others – it won’t help with your own medical bills or car repairs. You should consider adding collision and comprehensive coverage for adequate protection.

Average car insurance rates by gender in Minneapolis

In Minneapolis, female drivers pay an average of $3,195 per year for car insurance. In comparison, male drivers pay $3,275 annually, which is $80 more than what female drivers pay. Most states consider gender when calculating premiums. However, states such as California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania don’t allow insurers to use gender as a rating factor to determine insurance rates.

According to the Insurance Information Institute, or Triple-I, women tend to be safer drivers than men and are less likely to be involved in severe accidents. Insurers account for this risk by charging male drivers higher premiums.

Read more on how gender affects car insurance rates.

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Average car insurance rates by age in Minneapolis

Teen drivers in Minneapolis experience the highest insurance rates, paying an average of $9,202 per year or $767 per month.

According to the Insurance Information Institute, teens aged 16 to 19 are considered high-risk due to their inexperience behind the wheel. On average, teen drivers pay $4,150 more than young adults for insurance.

With age and experience, young drivers often see a drop in car insurance premiums. On average, 20 to 24-year-olds pay $5,052 per year – a difference of $4,150 less than compared to teen drivers.

Drivers in Minneapolis aged 25 to 55 typically pay $3,143 a year for car insurance. For senior drivers aged between 60 and 75, the average annual premium is $3,197.

Read more on auto insurance for seniors.

The table below shows the average annual full coverage car insurance rates for drivers of different age groups.

Car insurance rate trends in Minneapolis

Car insurance premiums in Minneapolis showed an upward trend between 2023 to 2025, with average rates changing by 48% or about $1,047.

The graph below tracks insurance costs from 2022 to 2025, highlighting long-term trends that help explain today’s rate changes.

How drivers can save on insurance even with higher rates

Car insurance rates in Minneapolis are higher than the Minnesota state average. To find affordable coverage, consider comparing quotes from at least three to five insurers. You can also save by taking advantage of discounts for safe driving, low annual mileage or bundling your policies.

Methodology

Insure.com commissioned car insurance rates in 2025 from Quadrant Information Services. To determine the average premiums, our team of data analysts and expert editors analyzed 53,409,632 insurance quotes from 170 insurance companies across 34,588 ZIP codes.

The insurance rates are based on a sample profile of a 40-year-old male and female driver with a clean driving record and a good insurance score. Quotes premiums are for a full coverage policy with limits:

• $100,000 bodily injury per person
• $300,000 bodily injury per accident
• $100,000 property damage per accident
• $500 comprehensive and collision deductible

The quoted insurance rates are for comparison purposes, and your rates may vary.

Shivani Gite

Contributing Writer

 

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Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.