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Car insurance in Minneapolis costs $2,188 per year for full coverage—$182 per month. USAA offers the cheapest policies, at an average of $124 per month.

As one of the Twin Cities, Minneapolis is the largest city in the state of Minnesota, with a population of around 425,000. Learn about the cheapest car insurance companies in Minneapolis, how much car insurance you need in Minneapolis and how its insurance rates compare to other large U.S. cities.

Key Takeaways

  • Full coverage car insurance in Minneapolis is $2,188 annually, higher than the nationwide average of $1,895.
  • The cheapest car insurance company for a full coverage policy in Minneapolis is USAA.
  • Car insurance in Minneapolis is $277 a year higher than the Minnesota statewide average of $1,911 for a full-coverage policy.

How to find the best car insurance in Minneapolis

Getting quotes for similar policies from multiple insurance companies is the best way to lock in the most affordable rates. As you shop around, look at rates from at least three different companies and don’t forget to ask if you qualify for any discounts

Cheapest car insurance company in Minneapolis

USAA offers the cheapest insurance coverage in Minneapolis, Minnesota, with an annual average rate of $1,489 for full coverage. But remember that USAA only works with drivers with qualifying connections to the military, such as active-duty or veteran status. The next cheapest company is Nationwide at $1,792 per year. 

See other cheap car insurance rates in Minneapolis in the table below.

Average annual rates from insurers in Minneapolis

Company Average annual rates for state minimumAverage annual rates for 50/100/50 liability onlyAverage annual rates for full coverage
USAA$455$509$1,489
Nationwide$1,058$984$1,792
Travelers$738$782$1,799
State Farm$670$733$1,860
Auto-Owners$570$612$2,013
Automobile Club MI (AAA)$1,030$1,106$2,069
Geico$734$811$2,410
Western National Mutual$784$909$3,057
Allstate$1,010$1,061$3,199

How much is car insurance in Minneapolis per month?

Car insurance in Minneapolis costs $65 per month for a state minimum policy and $182 per month for a full coverage car insurance policy, on average, according to recent data. See monthly rates from Minnesota insurers in the table below.

Monthly rates for car insurance in Minneapolis, Minnesota

Company Average monthly rates for state minimum Average monthly rates for 50/100/50 liability onlyAverage monthly rates for full coverage
USAA$38$42$124
Nationwide$88$82$149
Travelers$61$65$150
State Farm$56$61$155
Auto-Owners$47$51$168
Automobile Club MI (AAA)$86$92$172
Geico$61$68$201
Western National Mutual$65$76$255
Allstate$84$88$267

How do rates in Minneapolis compare to other large cities in the U.S.?

Car insurance is cheaper in Minneapolis than in larger cities. Compare Minneapolis’s monthly average rate of $182 to Los Angeles’ $262 or a rate of $217 in New York, New York.

James Brau, professor of finance at Brigham Young University, says that the more risk the insurance company must bear, the higher the premium they must charge to stay in business and make a profit. 

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles,” Brau says. “As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

See how much you can expect to pay for car insurance in several major U.S. cities in the table below.

Monthly full-coverage car insurance costs in major U.S. metropolitan areas

CityAverage monthly premiums
Albuquerque$186
Atlanta$206
Austin$161
Bakersfield$206
Chicago$161
Colorado Springs$196
Dallas$190
Fresno$199
Houston$193
Kansas City$180
Long Beach$223
Los Angeles$262
Mesa$165
Miami$279
Milwaukee$168
Minneapolis$182
New York$217
Oakland$234
Omaha$162
Philadelphia$232
Phoenix$188
Raleigh$142
Sacramento$222
San Antonio$182
San Diego$194
San Jose$200
Tampa$261
Tucson$157
Tulsa$195
Virginia Beach$121
Wichita$166

Here’s what you need to know when driving in Minneapolis

Minneapolis drivers spend an average of 25 minutes commuting to work each way. 

Here are a few tips for drivers in Minneapolis:

  • Use a maps app to avoid sitting in unnecessary traffic. 
  • Rush hour runs from 7:30-9 a.m. and 4-6 p.m. If possible, avoid the roads during these times. 

And there are a few city restrictions in Minneapolis. Miscellaneous driving restrictions in the city of Minneapolis, Minnesota:

  • Drivers cannot park within 30 feet of a stop sign. 
  • Most streets in the city have a 20 MPH speed limit. 

How much car insurance do I need in Minneapolis?

In Minneapolis, the car insurance requirements follow the state of Minnesota’s guidelines. Here is a look at the required minimum coverage amounts:

  • $30,000 in bodily injury for a person involved in an accident 
  • $60,000 for bodily injury for two or more people in an accident
  • $10,000 in property damage coverage per accident
  • $40,000 in personal injury protection (PIP)
  • $25,000 per person and $50,000 per accident in uninsured motorist coverage
  • $25,000 per person and $50,000 per accident in underinsured motorist coverage

The state operates on a no-fault system. 

Average cost of car insurance in Minneapolis

The average annual cost of full coverage car insurance in Minneapolis is $2,188 – $277 more expensive than the Minnesota statewide average of $1,911. That’s quite a bit higher than the nationwide average of $1,895.

Annual average rates in Minneapolis for state minimum coverage and full coverage

State minimum coverage in MinneapolisAnnual full coverage rates in Minneapolis
$783$2,188

How much does car insurance in Minneapolis cost with violations?

A history of moving violations can push your car insurance costs higher, especially if you commit a serious violation. Some violations include a speeding ticket or DUI. 

For example, Minneapolis drivers see their rates increase by an average of 41% after an at-fault accident. If you are caught speeding, that ticket could push your car insurance rates up by an average of 40%. DUIs also lead to higher costs, with an average rate increase of 95% and bad credit will increase your rates 114%.

See rate increases in Minneapolis in the table below, by violation.

Violation% increase
At-Fault Accident41%
Bad Credit114%
DUI95%
Speeding40%

Cheapest car insurance in Minneapolis by age

Car insurance for teens in Minneapolis can get expensive – the annual rate for an 18-year-old is $6,494 per year for a full coverage policy. Rates start to head down at age 25 and back up in your late 60s. See more rates by age in the table below.

Annual rates for state minimum and full coverage car insurance in Minneapolis, by age

AgeState minimum coverageFull coverage
18$2,038$6,494
25$873$2,789
40$783$2,188
65$740$2,013

Compare auto insurance rates in Minneapolis by ZIP code 

Where you live also plays a role in car insurance costs. In Minneapolis, the cheapest ZIP codes for car insurance are 55410, 55419 and 55450. The most expensive are 55411, 55412 and 55404. 

See the tables below for the cheapest and most expensive ZIP codes for car insurance in Minneapolis. 

Cheapest annual car insurance rates in Minneapolis, by ZIP code 

ZIP codeAverage annual rate for full coverage
55410$1,954
55419$1,973
55450$1,996
55417$2,009
55418$2,029
55409$2,150
55455$2,173
55413$2,175
55403$2,178
55402$2,187

Most expensive annual car insurance rates in Minneapolis, by ZIP code 

ZIP codeAverage annual rate for full coverage
55411$2,447
55412$2,358
55404$2,349
55407$2,342
55408$2,300
55454$2,260
55415$2,238
55406$2,228
55401$2,202
55405$2,200

Our recommendations: Car insurance for drivers in Minneapolis

Minneapolis drivers who qualify can often get the cheapest coverage by purchasing a policy with USAA. However, USAA isn’t an option for everyone. Either way, drivers can shop around for the most affordable policy for your unique situation. 

Don’t forget to look beyond the price point. Make sure to look at the policy details to confirm you are getting the coverage you want and need. Gather quotes from several insurance companies to find the best price. 

Many drivers get the most value from a full coverage insurance policy with liability limits of 100/300/100. But as you accumulate wealth, consider choosing higher liability limits. Robust coverage can give you the peace of mind you need as you navigate Minneapolis roads. 

expert

What our expert says

Q. Why do insurance rates vary from city to city?

expert-image
Dr. James BrauJoel C. Peterson Professor of Finance Brigham Young University
“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles. As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

Resources & Methodology

Sources:

Census Bureau “Minneapolis.” Accessed February 2024.

City of Minneapolis. “Getting Around.” Accessed February 2024. 

Insurance Information Institute. “What determines the price of an auto insurance policy.” Accessed February 2024.

Minnesota Department of Commerce. “Insurance Requirements.” Accessed February 2024. 

State of Minnesota. “Minneapolis.”Accessed February 2024.

Methodology

In 2024, Insure.com commissioned Quadrant Information Services to pull rates for a 40-year-old who has a 12-mile commute and drives a 2023 Honda Accord LX 10k miles annually. The hypothetical driver has full coverage, carrying policy limits of 100/300/100 with $500 deductibles for comprehensive and collision coverages. We analyzed 51,088,003 insurance quotes from 167 companies across 34,588 ZIP codes in every state and Washington, D.C.

author image
Sarah Sharkey
Contributing Researcher

 
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Sarah Sharkey is a personal finance writer with a master’s degree in management from the Hough School of Business at the University of Florida. She enjoys helping readers find money solutions that work. She has written for numerous personal-finance publications including Money Under 30 and The College Investor.