How Much Is Minnesota Car Insurance?

Ever wonder how much drivers in Minnesota pay for car insurance? Check out the average price that most people pay and see if you can find a cheaper rate.

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Affordable Car Insurance in Minnesota

Minnesota is a pretty big state—the 12th largest by land area—and yet almost 60% of its entire populations is clustered in the Minneapolis-St. Paul metropolitan area. Fortunately, people in the Twin Cities are so friendly. And the rest of the folks have lots of space to spread out.

Auto insurance rates are higher if you live in the state’s crowded spot; more people and more traffic equal more accidents, which equals more claims. Still, Minnesota’s average premium is fairly middle-of-the-road for the country, no pun intended. But there are some effective ways to reduce what you pay, and many of them are covered over the course of this page.

Most importantly, though, you have to comparison shop to find the best policy at the best price. SmartFinancial’s carrier-neutral information makes it really fast and easy to do this. Give it a try—it’s free, no strings attached!

Minnesota Car Insurance

Cheapest Auto Insurance Rates in Minnesota

Carriers look at multiple variables when determining your insurance rate. Your age, location, driving history, and state requirements are all factors in determining the price you pay. We used our in-house reporting to determine the companies that offer the cheapest car insurance rates in Minnesota. USAA came in with the lowest rate currently available in Minnesota at $97.53 per month. Followed by Farm Bureau Mutual (IA Group) at $104.98 per month and State Farm at $116.14 per month.

Lowest Rate


Highest Rate


Average Rate


RankCompanyAvg monthly rate
1 USAA $97.53 / month
2 Farm Bureau Mutual (IA Group) $104.98 / month
3 State Farm $116.14 / month
4 Auto-Owners Insurance Co $123.50 / month
5 American Family $134.18 / month
6 West Bend Mutual $134.83 / month
7 Safeco $151.91 / month
8 Liberty Mutual $155.07 / month
9 North Star $160.79 / month
10 Farmers $170.18 / month
11 Western National $170.22 / month
12 Allied $181.98 / month
13 Nationwide $194.47 / month
14 Metropolitan $195.70 / month
15 Allstate $196.76 / month
16 Country $210.01 / month
17 Auto Club Group $212.00 / month
18 National Farmers Union P&C $219.19 / month
19 National Farmers Union P $227.49 / month
20 Encompass $638.38 / month

Top 10 Cheapest Cities for Car Insurance

If you are lucky enough to live in one of these cities you are likely paying some of the lowest car insurance rates available in Minnesota. According to our data, Crookston comes in at the cheapest at only $43.41 per month. Other cities that made the top 10 list include Long Prairie at $48.67 per month, Windom at $52.95 per month, and Glenwood at $54.31 per month.

RankCityAvg monthly rate
1 Crookston, MN$43.41 / month
2 Long Prairie, MN$48.67 / month
3 Windom, MN$52.95 / month
4 Glenwood, MN$54.31 / month
5 Albert Lea, MN$57.96 / month
6 Chisholm, MN$59.95 / month
7 Kenyon, MN$62.88 / month
8 Cass Lake, MN$63.64 / month
9 Owatonna, MN$65.14 / month
10 Saint Peter, MN$65.47 / month

Top 10 Most Expensive Cities for Car Insurance

These top 10 cities ranked as the most expensive places in Minnesota for car insurance. Location is a big factor when determining the price you pay for car insurance and these cities came in at the top. Milaca is the most expensive city in Minnesota at $177.79 per month. Second and third place goes to Montrose at $142.30 per month and Pierz at $137.64 per month.

RankCityAvg monthly rate
1 Milaca , MN $177.79 / month
2 Montrose , MN $142.30 / month
3 Pierz , MN $137.64 / month
4 Saint Michael , MN $135.36 / month
5 Crosby , MN $133.85 / month
6 Saint Paul Park , MN $129.15 / month
7 Bagley , MN $128.03 / month
8 Savage , MN $127.44 / month
9 Cambridge , MN $126.65 / month
10 Stacy , MN $126.52 / month

Average Quotes by Top Companies

Rates can vary wildly from company to company. Here is a quick look at a few rates from some of the top car insurance companies in Minnesota.

Compare Recent Car Insurance Quotes in Minnesota

SmartFinancial helps thousands of drivers every day find and compare the best car insurance rates available. Here is a list of some recent quotes that we recently found for drivers in Minnesota.

CompanyMonthly rateVehicle
General $02017 Jeep Cherokee
Dairyland $02012 Chevrolet Sonic
Safe Auto $02010 Kia Forte
21st Century $02003 Volkswagen New Beetle
General $02010 Ford F150
Safeco $02001 Honda Cr V
21st Century $02015 Ford Fiesta
Safeco $02006 Dodge Ram 3500
Safeco $02007 Dodge Caliber
Safeco $02007 Dodge Caravan
Infinity $02018 Subaru Crosstrek
Dairyland $02013 Ford F150


The statistics listed on this page are from our own in house reporting. We track and record quotes that carriers have provided based on various criteria. The rates and averages shown on this page should only be used as an estimate.

Minimum Car Insurance Coverage in Minnesota

Vehicles licensed in Minnesota are required to carry liability, personal injury protection (PIP), uninsured motorist, and underinsured motorist coverage.

Motorists must maintain $30,000 in bodily injury liability for injuries to one person and $60,000 for injuries to two or more people per accident. Also, $10,000 in property damage liability is required to cover physical damage to the other driver’s vehicle or for damage to property. Minnesota drivers are also required to carry $40,000 in personal injury protection.

Additionally, uninsured motorist coverage in the amount of $25,000 for injuries to one person and $50,000 for injuries to two or more people and underinsured motorist coverage in the amount of $25,000 for injuries to one person and $50,000 for injuries to two or more people are required by law.


Bodily injury coverage per person

Maximum payment for serious or permanent injury or death to a single person


Bodily injury coverage per accident

Maximum payment for serious or permanent injury or death to multiple people


Property damage per accident

Maximum payment for all damaged property in an accident caused by you

While it may seem like a poor use of your hard-earned money to add optional coverages to your policy, you’ll be happy to have the extra financial protection if you’re involved in a serious accident. Plus, most financial lenders require collision and comprehensive coverage, and some may require more than that. Check with your lender before taking out a new insurance policy to make sure you’re properly covered. If you don’t have adequate protection, your lender can buy insurance on your behalf, and this will cost a lot more than getting it on your own.

Optional Coverage in Minnesota

  • Collision
  • Comprehensive
  • Gap Coverage
  • Medical Benefits
  • Travel Expenses
  • Full glass replacement
  • Custom Equipment
  • New Car Replacement
  • Towing
  • Rental Car
  • Accident Forgiveness
  • Roadside Assistance
  • Loss of Use

Minnesota Car Safety

Minnesota Car Safety

All Minnesota motorists are required to carry car insurance; we’ll get to the minimum coverage requirements soon. This protects you and every driver on the road from incurring burdensome—even potentially devastating—out-of-pocket expenses following an accident. And, not to sound like glass-half-empty kind of people, but accidents do happen. You hope for the best, but should always be prepared for the unfortunate with good coverage.

Fatal motor vehicle collisions in Minnesota are again on the rise. The top four contributing factors in the state’s high number of fatal crashes are speed, distractions, impaired driving, and failure to properly use seat belts. Behaviors that can help prevent crashes are never driving drunk, slowing down, buckling up, and paying attention to the road and other drivers.

Car Safety for Minnesota Kids

In Minnesota, all children under the age of 8 years must ride in an approved child restraint seat until they reach 4’9″ or taller. Infants weighing less than 20 pounds who’ve not yet reached 1 year of age must ride in a rear-facing car seat, and a forward-facing seat is required for ages 1 to 4. This law applies to all seating positions and to all vehicles equipped with factory-installed seat belts.

Failure to follow the state’s child safety seat law will result in a petty misdemeanor fine of $50. Law enforcement can legally stop a vehicle if they suspect a car seat is not being used.

Exceptions to Minnesota’s law include children riding in emergency medical vehicles, vehicles for hire, or with a peace officer on duty. Children who’ve been certified by a licensed physician as having any disability, medical or otherwise, that makes restraint use inadvisable are also exempt, as are passengers in school buses with a GVWR of over 10,000 pounds.

Although Minnesota has no laws regarding leaving children unattended in a motor vehicle, state statutes allow for charges of child neglect or endangerment if the lack of adult supervision places a child in any situation that is likely to cause harm to the child.

Minneapolis Police spokesman John Elder says legal charges are at the discretion of the officer. “If the officer feels the child is in danger, he can take the child and put them in protective custody.”

There are many risks associated with leaving young children unattended in vehicles, including temperature-related injury and death, kidnapping, and accidental injury. Children should never be left alone inside a parked car for even a few minutes.


Number of traffic crashes in 2015


Known alcohol-related crashes in 2015


Number of traffic accident fatalities in 2015

Driving Green in Minnesota

Driving green in Minnesota

If you want to minimize the damage your car and driving do to the environment, Mark Snyder at the Minnesota Office of Environmental Assistance recommends reducing the time your engine runs, slowing down, carpooling or biking, buying recycled tires and other car parts, maintaining your car properly, and making fuel-efficient choices when buying new cars. Plus, these choices may help you qualify for green driver discounts.


Minnesota Idle Reduction Technology

Minnesota offers two incentives involving the use of idle-reduction technology. The first is a weight credit that allows vehicles equipped with idle- and emissions-reduction technology to exceed axle weight and gross vehicle weight limits by up to 550 lbs. to compensate for the extra weight of having such technology. The other incentive is a Small Business Environmental Improvement Loan Program to help support small businesses in their efforts to go green.


Propane Vehicle Rebate

Customers who purchase new propane vehicles or convert their existing vehicle to a propane vehicle may qualify for a rebate from the Minnesota Propane Association. To qualify for this money-back offer, the vehicle must be registered in Minnesota and converted using systems certified by the EPA.


Auto Insurance Discounts and Federal Tax Credits

Drivers of green vehicles may qualify for various insurance discounts or federal tax credits. Drivers of hybrid vehicles, economy cars, alternative fuel vehicles, and other eco-friendly vehicles should check with their insurance carrier and the IRS to see what discounts and tax breaks may apply.

Minnesota Car Insurance FAQ

Minnesota car insurance faq

Is my credit score a factor when obtaining car insurance in Minnesota?

Yes, it is. Because insurance carriers believe people with lower credit scores are more likely file a claim, they typically charge more for a poor credit history. Your credit is only one factor used in determining your insurance premium, but it can have a significant impact on your rates.

Does Minnesota offer a good-driver discount?

Yes. There are a variety of good-driver discounts available through insurance carriers, and these can substantially reduce the cost of your auto insurance. It pays to be a responsible and safe motorist in Minnesota. Other discounts Minnesota drivers may qualify for include: 

  • Accident-Free
  • Claims-Free
  • Teen Driver
  • Multi-Car
  • Distant Student
  • Alternative Fuel
  • Homeowner
  • Defensive Driver
  • Good Student
  • Anti-Lock Brake
  • Anti-Theft Device
  • Multiple Line
  • Passive Restraint
  • Vehicle Safety

Does Minnesota allow the use of digital insurance cards?

Yes, Minnesota drivers can provide proof of auto insurance by showing law enforcement officers their insurance information on a cell phone or other electronic mobile device.

What happens if my coverage lapses?

If you fail to maintain the state’s required level of insurance coverage on your vehicle, you may be required to obtain new insurance and pay a fine to reinstate your driving privileges. This is the case if your insurance is canceled, if you fail to renew, or if you forget to pay your premium.

Do I need car insurance for rental cars in Minnesota?

Minnesota law requires all auto insurance policies to provide a minimum of $35,000 coverage for damage to and loss of use of a rental car. This amount is without a deductible. Drivers renting a car in Minnesota must be informed of this coverage.

What are Minnesota's blood alcohol concentration (BAC) percentage limits under the state's driving under the influence (DUI) laws?

It’s against the law to drive in Minnesota at the following BAC percentages:

.08%+ at 21 years old or older
.04%+ for commercial vehicle drivers
.02%+ at under 21 years old

Any amount of detectable alcohol in a person under age 21 will result in a DWI charge.

What are the chemical test refusal penalties in Minnesota?

Minnesota’s “implied consent” law requires you to submit to a blood, breath, or urine test if you’re arrested for DWI. Refusal to take one of these tests will not save you from arrest; law enforcement officers can arrest anyone suspected of driving while impaired, and test refusal will result in a 1-year revocation of your license.

What are the consequences of being convicted of a DUI?

You can be charged with a felony in Minnesota if you’re arrested for your fourth DWI within 10 years, if you’ve previously been convicted of a felony DWI, or if you have a prior felony conviction for a DWI-related criminal injury or vehicular manslaughter.

Penalties for a DWI depend on whether any injuries or deaths occur and whether or not you’ve been convicted of impaired driving in the past. Penalties range from suspension of your driver’s license to 10 years in prison and a $20,000 fine.

Does Minnesota offer driver improvement courses to reduce my insurance premium?

Minnesota state law gives people age 55 and older a 10% discount on their auto insurance for 3 years after completing an approved defensive driving course. But people of all ages may qualify for discounts through their insurance carrier for completing one of these courses. For more information on defensive driving courses, visit the Minnesota Safety Council’s website.

Is there any way I can reduce the cost of my Minnesota car insurance?

Many factors affect your insurance premium, such as age and gender, added coverages, mileage, location, driving record, discounts, deductibles, and more. Your credit history can also play a role. Some of these things are out of your control, but maintaining a clean driving record, asking for all available discounts, and improving your credit score can reduce the cost of your car insurance. And, your savings over the course of a year can be huge if you shop around for the lowest quote!

What is uninsured motorist coverage and is it required in Minnesota?

Yes. Both uninsured and underinsured motorist coverage is required in Minnesota. This type of insurance protects you in the event of an accident where the other party is at fault and is uninsured or doesn’t carry enough insurance. State minimum requirements for uninsured coverage are in the amounts of $25,000 for injuries to one person and $50,000 for injuries to two or more people per accident; state minimum requirements for underinsured motorist coverage are in the same amounts.

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