The best and cheapest car insurance in Minnesota

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Auto-Owners is the best car insurance company in Minnesota, earning 4.58 out of 5 stars in our analysis of pricing, customer satisfaction and financial strength. It offers average annual rates of $2,243, which is $348 less than the state average.

Drivers in Minnesota pay an average of $2,591 a year or $216 a month for car insurance coverage.

The table below shows the best car insurance companies in Minnesota.

How we picked the top car insurance companies

When choosing the top car insurance companies in Minnesota, we looked beyond just the average cost of coverage. We also reviewed customer satisfaction data from J.D. Power, financial strength ratings from AM Best and complaint trends reported by the National Association of Insurance Commissioners (NAIC). If state or regional data wasn’t available, we used national averages to keep the comparisons consistent and fair for readers.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Which insurers offer the cheapest car insurance in Minnesota?

Travelers has the cheapest average car insurance rate in Minnesota at $1,837 a year.

Other low-cost insurers in Minnesota include:

• Auto Club Group (AAA), with average rates of $2,129 a year, or $177 a month
• Auto-Owners, with average premiums of $2,243 a year, which comes out to $187 per month

On the higher end, GEICO has the highest average premium at $3,397 a year.

Keep in mind that your actual rate may be different. Insurers consider factors like your driving record, credit score, age, vehicle and ZIP code when calculating premiums, so the cheapest company for the average driver may not be the cheapest for you.

Below are the cheapest car insurance rates by state, based on a profile of a 40-year-old driver with a Honda Accord LX to ensure fair, apples-to-apples comparisons. Rates are for full coverage car insurance.

What is full coverage car insurance?

Full coverage car insurance combines several types of protection to provide broader financial coverage. It generally includes liability insurance (which is required in most states) along with collision and comprehensive coverage.

These additional coverages pay for damage to your own vehicle caused by accidents, theft, severe weather, vandalism and other non-collision incidents. While full coverage offers more protection than minimum liability alone, it also comes at a higher cost and is often especially worthwhile for newer, financed or higher-value vehicles.

Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

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How do you find the best car insurance rates in Minnesota?

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. That means checking:

• The same liability limits
• The same deductibles
• The same coverage types

For example, if one quote shows 25/50/25 in liability coverage and another shows 50/100/100, the lower price may simply reflect lower protection – not a better deal. Many agents recommend at least 50/100/100, and higher limits may make sense depending on your income and assets.

You can also lower your premium by:

• Maintaining a strong credit score
• Avoiding tickets and accidents
• Bundling home and auto insurance with the same carrier

Which companies have the cheapest car insurance for seniors in Minnesota?

Senior drivers in Minnesota generally pay higher car insurance rates than most age groups, though teens still tend to pay the most overall.

The cheapest car insurance companies for seniors in Minnesota are:

• Travelers: $1,786 a year ($149 a month)
• Auto Club Group (AAA): $2,140 a year
• State Farm: $2,166 a year

Insurers typically charge seniors more because premiums reflect overall risk trends, including claim frequency and age-related driving factors such as slower reaction times and vision changes. That said, many seniors can still find lower rates by keeping a clean driving record, driving fewer miles and taking advantage of mature driver or safe driver discounts.

The chart below shows the average car insurance premiums for senior drivers in Minnesota.

Which companies have the cheapest car insurance for young adults in Minnesota?

While young adults pay less than teen drivers, they still pay more than older more experienced drivers. The best choice for young adults (early 20s) in Minnesota is Travelers with an annual rate of $2,846 or $237 a month.

Auto-Owners had the second cheapest premium at $3,395 a year followed by Auto Club Group (AAA) was third at $3,576.

If young drivers keep their driving record clean, their rates will drop down as they move out of their 20s.

The table below shows the best insurers for young drivers in Minnesota:

Which companies have the cheapest car insurance for teen drivers in Minnesota?

In Minnesota, Auto-Owners offers the cheapest car insurance for teen drivers, with average premiums of $5,093 per year or $424 per month.

“Teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups,” says Chong Gao, director of product management R&D at Mercury Insurance. “For teenagers, the lack of driving experience is a significant factor that impacts their rates; younger drivers with little experience behind the wheel tend to pay higher insurance premiums.”

Travelers is the next most affordable option at $5,694 per year or $475 per month, followed by State Farm at $6,525 per year.

The chart below shows average premiums for teens in Minnesota:

Why the cheapest company may vary by driver

The lowest average rate doesn’t always mean the lowest quote for you. Car insurance is highly personalized, and insurers price policies differently based on risk.

Key factors that affect your premium include:

• Driving record
• Credit score (in most states)
• Age and marital status
• Vehicle make and model
• ZIP code and local risk levels

Age is one of the biggest pricing factors. For example, adding a teen to a policy can significantly increase premiums because teens are the least experienced drivers and are more likely to be involved in accidents and file claims.

“Teen drivers are statistically more likely to be involved in accidents due to their lack of driving experience and tendency to engage in risky behaviors like speeding,” says Eliezer Zupnick, founder of East Leads Group LLC. “Teens are involved in three times as many auto accidents per mile compared to drivers aged 20 and up, making them a high-risk category for insurers.”

Parents can help offset higher costs by asking about good student discounts, insuring a less expensive vehicle or adjusting coverage if the car’s value is low.

What is the average cost of car insurance in Minnesota?

In Minnesota, drivers pay an average of $2,591 per year for car insurance.

Premiums vary widely across states since insurers consider overall risk indicators like claims activity, repair costs, regulatory requirements and accident data. Within the same state, individual quotes can also vary based on a driver’s record, age, vehicle and location.

The chart below displays the average rate in Minnesota for a 40-year-old driver with 100/300/100 coverage and a $500 collision and comprehensive deductible driving a Honda Accord LX.

Which cities and ZIP codes in Minnesota are the most expensive for car insurance?

Minneapolis has the highest car insurance rates in Minnesota, with average premiums reaching $3,209 per year across its most expensive ZIP codes.

Insurers use ZIP code data to assess localized risk factors, including traffic density, crime rates and exposure to severe weather. Urban areas with higher accident frequency or vehicle theft claims typically have the highest premiums.

According to our analysis of city and ZIP code data, the following areas are the most expensive in Minnesota for car insurance:

Which Minnesota cities and ZIP codes are the cheapest for car insurance?

When it comes to cheap car insurance in Minnesota, these ZIP codes have the most affordable coverage. The area around Janesville has the lowest premiums in Minnesota with an average premium of $2,274.

How your location in Minnesota affects car insurance rates

Where you live in Minnesota can have a major impact on your car insurance premium. Insurers evaluate local risk factors such as accident frequency, traffic congestion, repair expenses and weather-related claims when calculating rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Gao.

Because each insurer weighs these location-based risks differently within its pricing model, premiums can vary significantly even for drivers with similar profiles living in different areas of the state.

Who has the cheapest car insurance for high-risk drivers in Minnesota?

Traffic violations and accidents can drive up your car insurance premiums because insurers often classify drivers with tickets or accidents as higher risk.

For instance, a speeding ticket can increase the average premium to $3,550 and may impact your rates for up to three years. An at-fault accident generally has a greater effect, raising the average cost of coverage to approximately $4,122.

A DUI is considered a serious offense and typically results in the largest premium increase, with average rates climbing to $6,348.

The table below illustrates the average rate increases following common driving violations.

Minimum car insurance requirements in Minnesota

Drivers in Minnesota are required to carry at least 30/60/10 in liability insurance to legally operate a vehicle. This minimum coverage pays for injuries and property damage you cause to others in an accident.

However, state-required limits are often modest. In a major crash, medical expenses and vehicle repairs can quickly exceed those minimum amounts – and anything beyond your coverage becomes your financial responsibility.

To better protect your savings and income, many insurance professionals suggest higher liability limits, such as 100/300/50. Increasing your coverage can provide an added layer of financial security if the unexpected happens.

That required coverage translates into:

• $30,000 for injury/death per person
• $60,000 for injury/death per accident
• $10,000 for damage to property

Final thoughts on the best and cheapest car insurance in Minnesota

The best car insurance in Minnesota depends on your budget, driving profile and coverage needs. Auto-Owners delivers strong overall value by combining competitive pricing with high customer satisfaction and financial stability.

That said, the cheapest insurer for the average driver may not be the cheapest for you. Factors like your age, driving history, vehicle and ZIP code all influence your final quote, which is why comparing multiple insurers is key.

To get the best rate in Minnesota, compare quotes from at least three companies, review coverage limits (not just price) and take advantage of discounts such as bundling, safe driver, telematics or good student savings. A few minutes of comparison shopping can lead to significantly lower premiums without sacrificing coverage.

What our experts say

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

Teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups

Methodology

Our car insurance analysis is based on 2026 rate data across all 50 states and Washington, D.C., covering 29,159 cities and 34,595 ZIP codes.

For standard rate comparisons, we analyzed 65,756,440 quotes from 195 companies across 73 insurer groups. Rates reflect a 40-year-old male and female driving a Honda Accord LX with 100/300/100 liability limits, $500 collision and comprehensive deductibles, a good insurance score, no violations, a 12-mile commute and 10,000 annual miles. The national average premium for this profile is $2,578 per year.

To measure the impact of risk factors, we reviewed an additional 95,071,152 quotes modeling at-fault accidents, DUI/DWI, speeding violations and poor credit, using the same base profile for consistency.

Company rankings are weighted as follows:

• J.D. Power (30%) – customer satisfaction
• Annual premium (25%) – average cost
• AM Best (25%) – financial strength
• NAIC (20%) – complaint index

Alisha Ambre

 

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Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game.

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