Low-cost car insurance in Minnesota

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Travelers provides the lowest car insurance rates in Minnesota at $1,776 a year. The average premium is $213 per month in Minnesota, though your actual rate may vary.

Car insurance requirements differ by state. In Minnesota, drivers are required to carry at least the minimum liability coverage: $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $10,000 for property damage per accident.

Full coverage car insurance can be a smart choice for drivers who want more than the bare minimum. It combines liability with collision and comprehensive coverage, protecting not only other drivers and their property but also your own vehicle in cases of accidents, theft, or weather damage.

Below, you’ll find which insurance companies are the most affordable for different categories.

Key Takeaways

Travelers has the cheapest average premium in Minnesota, coming in at $1,776 per year – about $785 compared to the state average.
For drivers with an at-fault accident on their record, Auto-Owners offers the lowest rates, with annual costs averaging $2,361.
The 56088 ZIP code is the least expensive area in Minnesota for car insurance, with an average yearly premium of $2,128.

Low-cost car insurance businesses in Minnesota

When comparing insurers in Minnesota, Travelers leads the pack with an annual average of $1,776. That’s $785 less than the statewide average. Individual premiums vary depending on your driving record, vehicle type, age, and ZIP code.

To make sure you’re getting the best price, it’s always smart to check quotes from multiple carriers.

Here are the annual averages from the most affordable insurance companies in Minnesota.

Company	Average annual rates
Travelers	$1,776
Auto-Owners	$1,864
Auto Club Group – ACG (AAA)	$2,035
State Farm	$2,404
Nationwide	$2,515
Allstate	$2,883
North Star Mutual	$3,161
GEICO	$3,406
Western National Insurance	$4,298
USAA*	$1,713

*USAA is only available to military community members and their families.

How we choose low-cost car insurance companies in Minnesota

170+

Carriers reviewed

78M+

Quotes analysed

34K+

ZIP codes examined

ZIP codes with the cheapest car insurance in Minnesota

In Minnesota, drivers living in the 56088 ZIP code enjoy the lowest average annual premium at $2,128. Check the table below to see which other ZIP codes in the state have more affordable rates.

ZIP code	City	Average annual rates
56088	Truman	$2,128
55920	Byron	$2,149
55953	Lyle	$2,163
56009	Alden	$2,169
56087	Springfield	$2,171
55049	Medford	$2,172
56029	Emmons	$2,175
55988	Stockton	$2,175
55918	Brownsdale	$2,176
55960	Oronoco	$2,176

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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.

Car insurance rates in Minnesota by city

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Low-cost car insurance in Minnesota by age

Teenagers pay significantly more for car insurance than adults in Minnesota. For instance, a 16-year-old driver pays $5,495 more on average than a 40-year-old.

The following table shows car insurance rates by age group in Minnesota.

Age group	Full coverage annual premiums
Teens (16-19)	$6,793
Young Adults (20-24)	$3,944
Adults (25-60)	$2,463
Seniors (65-75)	$2,317

Low-cost car insurance in Minnesota by driver history

Insurers weigh your driving record heavily when setting premiums. You can expect your rates to rise if you’re ticketed or at fault in an accident. On the other hand, drivers with clean records are considered lower risk and usually qualify for cheaper coverage.

Low-cost car insurance after a speeding ticket in Minnesota

One speeding ticket in Minnesota can cause your insurance rates to jump by 36%, or roughly $923 per year. Combined with the cost of the fine, a violation can get expensive fast. The table below highlights insurers with lower-priced options even after a ticket.

Company	Average annual premium	New rate after accident	% Increase	$ Increase
Auto-Owners	$1,864	$2,387	28%	$523
State Farm	$2,404	$2,614	9%	$210
Travelers	$1,776	$2,644	49%	$869
Nationwide	$2,515	$3,380	34%	$865
Auto Club Group – ACG (AAA)	$2,035	$3,777	86%	$1,743
Allstate	$2,883	$3,998	39%	$1,114
GEICO	$3,406	$5,100	50%	$1,694
USAA*	$1,713	$2,108	23%	$395

*USAA is only available to military community members and their families.

Low-cost car insurance after an accident in Minnesota

After an at-fault accident, premiums increase significantly, but some insurers still offer cheaper options. Auto-Owners has the lowest average rate at $2,361 per year.

If you’ve been in an accident, shopping around can help reduce costs. The table below highlights companies in Minnesota with the most affordable rates for drivers with an accident on their record.

Company	Average annual premium	New rate after accident	% Increase	$ Increase
Auto-Owners	$1,864	$2,361	27%	$497
Travelers	$1,776	$2,544	43%	$769
State Farm	$2,404	$2,824	17%	$420
Nationwide	$2,515	$3,602	43%	$1,087
Auto Club Group – ACG (AAA)	$2,035	$4,036	98%	$2,001
Allstate	$2,883	$4,876	69%	$1,992
GEICO	$3,406	$5,764	69%	$2,358
USAA*	$1,713	$2,499	46%	$786

*USAA is only available to military community members and their families.

Low-cost car insurance after a DUI in Minnesota

A DUI often places drivers in the high-risk driver category, resulting in much higher rates. Still, some companies in Minnesota keep their premiums lower than others. The table below shows the most affordable options available after a DUI.

Company	Average annual premium	New rate after accident	$ Increase	% Increase
State Farm	$2,404	$2,614	$210	9%
Travelers	$1,776	$3,015	$1,239	70%
Auto-Owners	$1,864	$3,499	$1,635	88%
Nationwide	$2,515	$4,275	$1,760	70%
Allstate	$2,883	$4,865	$1,982	69%
Auto Club Group – ACG (AAA)	$2,035	$9,775	$7,741	380%
GEICO	$3,406	$10,637	$7,231	212%
USAA*	$1,713	$3,179	$1,467	86%

*USAA is only available to military community members and their families.

Average cost of car insurance Minnesota

Full coverage insurance costs more than minimum liability insurance, but the extra cost is worth it for most drivers. That’s because minimum liability only pays for injuries or damage you cause to others, leaving you to cover repairs or replacement of your own car out of pocket. Full coverage, on the other hand, includes collision and comprehensive insurance, so your vehicle is protected in situations like accidents, theft, storms, or vandalism.

The average cost of full coverage car insurance in Minnesota is $48 more than the national average car insurance rates in the U.S.

We recommend that you carry at least coverage limits of 100/300/100 – that’s $100,000 in bodily injury coverage per person, $300,000 per accident, and $100,000 in property damage coverage. These limits provide a better safety net if you’re involved in a serious accident where costs could quickly exceed minimum requirements.

What is full coverage car insurance?

Full coverage refers to liability insurance plus both collision and comprehensive. Collision pays for damage to your vehicle after an accident, while comprehensive covers non-collision events like theft, fire, or hail damage.

If you lease or finance your vehicle in Minnesota, your lender may require collision and comprehensive insurance on top of the state’s liability minimums.

The bottom line on saving and staying protected

It’s natural to look for ways to lower your insurance costs, but cutting corners on coverage can leave you financially vulnerable after an accident.

Make sure you choose a policy that balances affordability with protection. Always compare quotes from at least three companies to find low-cost car insurance in Minnesota.

Methodology

Insure.com gathered data from Quadrant Information Services to get car insurance rates in Minnesota. The rates are based on a sample profile of a 40-year-old male and female driving a Honda Accord LX with a good insurance score and no violations on record for a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductibles.

We analyzed 53,409,632 insurance quotes from 170 insurance companies across 34,588 ZIP codes nationwide.

To determine car insurance rates for high-risk drivers with a history of traffic violations, we used a sample profile of a 40-year-old male and female driver who own a Honda Accord LX.

We also used sample profiles of drivers from different age groups: Teen drivers (Age 16-19), young drivers (Age 20-24), adult drivers (Age 25-60) and senior drivers (Age 65-75)

We determined the premiums for a high-risk driver with the following incidents applied

1 At-fault property damage accident over $2K
1 At-fault property damage accident under $2K
At-fault bodily injury accident
Poor credit
DUI/DWI first offense
Speeding 30+ over limit
Speeding ticket 1-10 MPH over limit
Speeding ticket 11-29 MPH over the limit

These are sample rates, and your exact rates may vary.

Shivani Gite

Contributing Writer

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.