The best and cheapest car insurance in Minnesota

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According to our analysis, Auto-Owners is the top car insurance provider in Minnesota, earning 4.58 out of 5 stars for its combination of affordability, customer satisfaction and financial stability. Its average premium of $2,243 per year is $348 less than the statewide average.

State Farm finished second with 4.34 stars, followed closely by Travelers at 4.13 stars.

Drivers in Minnesota spend an average of $2,591 annually, or $216 monthly, on car insurance.

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

How we picked the top auto insurance companies

When selecting the top car insurance companies in Minnesota, we didn’t focus solely on price. We also reviewed customer satisfaction results from J.D. Power, financial strength ratings from AM Best and complaint records from the National Association of Insurance Commissioners (NAIC). When state-specific data wasn’t available, we used national averages to ensure readers could make fair comparisons.

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 company offers the cheapest car insurance in Minnesota?

With an average annual rate of $1,837, Travelers is the most affordable car insurance company in Minnesota.

Other low-cost options include:

• Auto Club Group (AAA), at $2,129 per year or $177 per month
• Auto-Owners, averaging $2,243 annually, which works out to about $187 a month

Meanwhile, GEICO ranks as the most expensive insurer in the state, with average premiums of $3,397 a year.

Keep in mind that your individual rate may vary. Insurance companies factor in your driving record, credit score, age, vehicle and ZIP code when setting premiums, so the cheapest insurer for one driver may not be the cheapest for another.

Below are the cheapest car insurance rates by company, based on a 40-year-old driving a Honda Accord LX to ensure fair comparisons. All rates reflect full coverage policies.

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 typically pay higher car insurance premiums than most other age groups, although teens still face the highest rates overall.

The cheapest car insurance companies for seniors in Minnesota include:

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

Insurance companies often charge seniors more because premiums reflect broader risk patterns, including claim frequency and age-related factors such as slower reaction times or changes in vision. However, many seniors can still secure competitive rates by maintaining a clean driving history, limiting annual mileage and taking advantage of mature driver or safe driver discounts.

The chart below highlights 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 most affordable coverage for teen drivers, with average premiums starting at $5,093 annually or $424 per month.

Because teens have less driving experience, insurers classify them as higher-risk policyholders.

“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 follows at $5,694 per year or $475 per month, while State Farm rounds out the top three at $6,525 annually.

The table below shows average teen car insurance premiums in Minnesota:

Why the cheapest company may vary by driver

An insurer with the lowest average premium may not offer you the lowest price. Car insurance rates are personalized, and companies calculate risk differently based on individual driver profiles.

Several factors can affect what you pay, including:

• Driving history
• Credit profile (where permitted)
• Age and marital status
• The type of vehicle you drive
• Your ZIP code and local claim trends

Age plays a major role in pricing. Adding a teen to a policy can significantly increase premiums because teens are the least experienced drivers and tend to have higher accident rates.

“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.”

To help offset higher premiums, parents can explore good student discounts, choose a more affordable vehicle or reconsider certain coverages if the car’s value is low.

What is the average cost of car insurance in Minnesota?

The average cost of car insurance in Minnesota is $2,591 a year.

Car insurance rates vary widely from state to state because insurers base premiums on overall risk trends, including claim frequency, repair costs, state regulations and local accident data. Even within the same state, drivers can see different quotes depending on their driving history, age, vehicle and ZIP code.

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

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

Insurance premiums vary by location because where your vehicle is parked overnight affects overall risk. Cities and ZIP codes with frequent severe weather, heavier traffic congestion or higher crime levels typically experience more accident and theft claims, which drives up costs for drivers in those areas.

Below are the most expensive cities and ZIP codes 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.

Which companies have the cheapest car insurance for high-risk drivers in Minnesota?

Traffic violations and accidents can lead to higher car insurance premiums because insurers may view you as a greater risk.

For instance, a speeding ticket can increase the average premium to $3,550 and typically impacts rates for up to three years. An at-fault accident usually has a bigger effect, raising the average cost of coverage to about $4,122.

A DUI is considered a serious violation and often results in the largest increase, with average premiums climbing to $6,348.

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

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 stands out for its overall value, offering competitive pricing along with strong customer satisfaction and solid financial strength.

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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