How to Find the Most Affordable Car Insurance in Minnesota

Fran
Lucy Lazarony
July 13, 2020

The average car insurance policy in Minnesota costs $1,258, which is almost 12 percent less than national average. Being better than average is nice. But we bet Minnesotans can do even better on their car insurance. It is just a matter of following some tips and strategies. We will introduce those later on but first let’s take a closer look at car insurance in Minnesota.

Minimum Liability Requirements

If you ever cause a car crash, liability insurance pays for the other people’s injuries and property damage, up to your liability limit. Each state has its own minimum liability requirements for the drivers in their state.

In Minnesota, the minimum liability requirements are $30,000 for injuries to one person, $60,000 for injuries to two or more people and $10,000 physical damage to the other driver’s vehicle and for damage to property.

In Minnesota, the state minimum liability requirement costs $549 per year.

Personal Injury Protection requirements

Minnesota is a no-fault state and requires its drivers to carry Personal Injury Protection (PIP) of $40,000 per person per accident, $20,000 for hospital and medical expenses and $20,000 for non-medical expenses such as lost wages and replacement services.

If you happen to get into an accident, no-fault insurance will reimburse you for any hospital or medical expenses and wage losses from inability to work as well as funeral costs if necessary. No-fault insurance will cover these expenses regardless of who is responsible for the accident.

Uninsured and Underinsured Motorist requirements

Minnesota requires its drivers to get uninsured and underinsured motorist coverages. Uninsured motorist coverage helps protect you from drivers who don’t have any auto insurance. Underinsured motorist coverage helps to protect you from drivers that don’t carry enough auto insurance. For uninsured motorists the required coverage is $25,000 for injuries to one person and $50.000 for injuries to two or more people.

For underinsured motorists the required coverage is $25,000 for injuries to one person and $50,000 for injuries of two or more people.

A Comprehensive Policy Costs More

In Minnesota, if you opt for a more comprehensive policy that includes collision insurance coverage and comprehensive insurance coverage with $1,000 deductibles, this will cost you an average of $1,095 per year.

Collision auto insurance is coverage that helps to replace or repair your car if it’s been damaged in an accident with another vehicle or object such as a tree or a fence. Comprehensive auto insurance covers events not covered by collision insurance. These events include fire, theft and vandalism and damages from weather such as a windstorm, a tornado, a hurricane and a hailstorm.

If you have a loan on your car, your lender will require that you carry both collision and comprehensive coverages.

A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car and losses. Both comprehensive and collision insurance coverages require deductibles.

Choosing a high deductible is one way to lower car insurance premiums.

How to Save Money on Car Insurance

Ready to save money on car insurance? These tips and strategies will show you how.

Use as many you can to save money.

Follow the rules. If you follow the rules of the road you will save money on your car insurance. Minnesotans without a recent at-fault accident save 34 percent on their car insurance premiums. But start breaking rules and the costs start going up. In Minnesota, car insurance premiums increase by 37 percent after a DUI, 34 percent after an at-fault accident and 19 percent after a speeding ticket. What does that mean in dollars and cents? In Minnesota, a first, minor, at-fault accident will increase your insurance premium about $633 per year. And a DUI would cost you an additional $723 or more per year. If you’ve been a good driver be sure to ask your insurance company for a good driver discount. You’ve earned your discount with your good driving behavior.

Get a good credit score. Insurance companies have been using consumer credit data to assign risk pools and set insurance rates since the mid-1990s. Drivers with good or excellent credit get low auto insurance rates. While drivers with no credit or poor credit pay much more for their policies. In Minnesota, a driver with excellent credit saves an average of $1,466 annually on car insurance compared with a driver with poor credit history. To get lower auto insurance rates, you’ll need to improve your credit score. So get current on past due accounts, pay down debt and avoid taking on new debt, these tips will help to lift your credit score.

Be a married driver. If you’re married, you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less for auto insurance than singles. In Minnesota, married drivers save an average of $93 each year on their car insurance.

Pay bills once or twice a year. Rather than paying monthly auto insurance bills, pay the entire annual amount or six-months amount. Your premium is lower when you pay just once or twice a year.

Get a multi-car discount. Insure more than one car with the same insurance company and you’ll save money on your car insurance premiums.

Try bundling. Bundle your auto insurance policy with another insurance policy such as a homeowners policy and save money.

Check car features. Having certain anti-theft and safety features on your car will lower your car insurance. So check the anti-theft and safety features on your car with your insurance company. You may be due a discount.

Spend less on older cars. The maximum payout for collision coverage and comprehensive coverage is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry collision and comprehensive coverages any longer.

Look into memberships. Members of some professional organizations and affiliations get discounts on car insurance. So check your memberships with your auto insurance company and find out if you qualify for a discount.

Stick with your coverage. You’ll pay higher insurance rates if you don’t maintain continuous coverage of your auto insurance. So stick with your auto insurance coverage and save money.

Choose a high deductible. As mentioned earlier, choosing a high deductible will save you money on your car insurance premium, especially on a newer car. Just be sure to put the deductible amount in a small emergency fund. This way the money will be there if you should need it for an insurance claim.

Check your age. Drivers younger than 25 and older than 65 have more serious accidents and pay more for their car insurance. Drivers of the ages in-between pay less for car insurance.

Be a female driver. Women make fewer accident claims than men and are rewarded with lower auto insurance rates. Men make more accident claims and pay more.

Be a low-mileage driver. If you have a heavy commute and you rack up the miles on your car, you will pay more for car insurance. But if you drive less and are a low-mileage driver, you will pay less on your car insurance. So drive less and pay less on car insurance.

Live in a safe neighborhood. If you live in a neighborhood with high accident claims and auto theft, you will pay more for your car insurance. If you live in a neighborhood with low accident claims and low crime, you will pay less on your car insurance. So choose a safe neighborhood and save money on your car insurance.

Check for discounts. The good driver discount was already mentioned. But veterans and students may be eligible for discounts too. So check with your auto insurance company.

Shop around. The best way to save money on car insurance is to shop around. You will want to get insurance quotes from several different companies. SmartFinancial makes this easy for you to do. Just type in the type of insurance you are looking for and a zip code to get started.

Answer a few, quick questions and you’ll be comparing auto insurance rates in Minnesota in no time. SmartFinancial has access to more than 200 insurance companies so you are bound to find the insurance coverage and price that you want. So shop smart for auto insurance and drive safely on the roadways of Minnesota.

Get a Free Auto Insurance Quote Online Now.

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