Low-cost car insurance in Minnesota

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In Minnesota, Travelers offers the cheapest average premium at $1,776 per year. For comparison, the statewide average monthly cost is $213, though individual rates vary depending on your driving profile, location, and vehicle.

Every state sets its own car insurance rules. In Minnesota, the minimum liability requirement is $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $10,000 for property damage per accident.

For drivers who want greater protection, full coverage can be a smart investment. It combines liability with both collision and comprehensive coverage, ensuring that your own car is also covered in the event of an accident, theft, weather damage, or other unexpected events.

Below, we highlight which insurers provide the most affordable rates across different driver categories.

Key Takeaways

Travelers offers the lowest car insurance rates in Minnesota, at $1,776 per year, which is about $785 the state average.
Auto-Owners has the lowest car insurance rates for drivers with a history of at-fault accidents, with an average annual cost of $2,361.
The ZIP code 56088 has the low-cost car insurance rates in Minnesota, at an average annual rate of $2,128.

Low-cost car insurance companies in Minnesota

Among all insurers in Minnesota, Travelers comes in lowest at $1,776 per year – $785 less than the statewide average. Keep in mind that your actual premium depends on factors like age, driving history, ZIP code, and the type of car you drive.

Comparing quotes from multiple companies is the best way to make sure you’re getting a competitive rate.

Below are the annual premiums from the cheapest car 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

Drivers in the 56088 ZIP code pay the lowest average annual premium in Minnesota, at $2,128. See which other areas of the state offer more affordable rates below.

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

Teen drivers in Minnesota pay higher insurance rates than adult drivers because they are more likely to get into accidents and file claims. For example, our data shows that a 16-year-old driver pays $5,495 more than a 40-year-old driver in Minnesota.

The table below shows low-cost car insurance rates for drivers of different ages.

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

Your driving history is one of the main factors insurers look at when determining how much you pay for coverage.Your auto insurance premiums will increase if you’re responsible for an accident or pulled over for a violation. However, if you have a clean driving record, insurance companies see you as a low-risk driver, and you will likely get coverage for a lower price.

Low-cost car insurance after a speeding ticket in Minnesota

Just one speeding ticket in Minnesota can raise your rates by 36% – $923 more per year. Along with the ticket fine, that makes speeding an expensive mistake. The table below shows insurers offering lower-cost options even with a violation.

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

Auto-Owners offers the lowest car insurance rates to drivers after an at-fault accident at $2,361 a year.

If you’re in an accident and are at fault, you will see your car insurance premiums increase. However, this doesn’t mean you can’t shop around to find better rates.

Below, you’ll see which companies offer low-cost car insurance for drivers with one 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 places you in the high-risk driver category, which usually leads to much higher premiums. Still, some insurers in Minnesota are more affordable than others. The table below shows which companies offer the lowest average rates after a DUI conviction.

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

While full coverage is more expensive than minimum liability, the extra protection is worth it for most drivers. Liability-only policies cover damage you cause to others, but not your own car. Full coverage adds collision and comprehensive protection, covering accidents, theft, weather, and other risks.

In Minnesota, the average cost of full coverage is $48 more compared to the national average.

We recommend carrying at least 100/300/100 in coverage – $100,000 for bodily injury per person, $300,000 per accident, and $100,000 in property damage liability. These limits provide stronger protection in serious accidents that could otherwise exceed state minimums.

What is full coverage car insurance?

Full coverage car insurance includes bodily injury liability and property damage liability coverage, as well as comprehensive and collision coverage. Collision insurance covers your vehicle if it’s damaged or destroyed in an accident, while comprehensive insurance provides protection against damage that is caused by something other than collisions, such as hail or theft.

If you lease or finance your car in Minnesota, your lender may ask you to purchase collision and comprehensive insurance beyond the state-mandated liability coverage.

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.