Low-cost car insurance in Minnesota

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Drivers in Minnesota can find the cheapest average premium with Travelers, at $1,776 per year. By comparison, the statewide average monthly cost is $213. Keep in mind that rates vary for each driver depending on factors like driving record, ZIP code, and vehicle type.

Since auto insurance laws differ by state, Minnesota requires drivers to carry at least $30,000 in bodily injury coverage per person, $60,000 in bodily injury per accident, and $10,000 for property damage liability.

For broader protection, full coverage may be a smart option. It combines liability, collision, and comprehensive insurance, giving you coverage not only for other drivers but also for your own vehicle if it’s damaged in a crash, stolen, or affected by severe weather.

Here’s how different insurers stack up for drivers in Minnesota, depending on your situation.

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

Travelers offers the lowest car insurance rates in Minnesota, with an average annual premium of $1,776 per year. It’s $785 less expensive than the average car insurance cost in Minnesota. Your actual rate will vary based on factors such as your driving history, age, ZIP code and the make and model of your car.

When shopping for auto insurance, compare rates from multiple companies to make sure you’re getting the best deal.

Below are the annual rates from low-cost car insurance companies..

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 56088 benefit from the lowest average premium in the state, at $2,128 per year. See the table below to find other ZIP codes in Minnesota where insurance tends to be cheaper.

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 record is one of the biggest factors in your insurance price. Tickets or accidents will raise your premium, while drivers with clean records are considered lower risk and typically receive more affordable coverage.

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

Being at fault in an accident will drive your premiums up, but some insurers remain more affordable than others. Auto-Owners is the lowest-cost option for these drivers, with an average annual premium of $2,361.

If you’ve had an accident, comparing quotes can help you avoid overpaying. See the table below for the cheapest companies after one at-fault accident.

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

Being labeled a high-risk driver after a DUI usually means paying much more for car insurance. However, some insurers are less expensive than others. The table below shows which companies in Minnesota offer the most affordable 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

Full coverage costs more than liability-only, but for most drivers, the additional protection is worth it. Liability-only policies cover injuries and damage you cause to others, but don’t pay for your own vehicle. Full coverage adds collision and comprehensive, protecting you against accidents, theft, weather damage, and more.

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

We recommend carrying coverage limits of 100/300/100 – $100,000 in bodily injury per person, $300,000 per accident, and $100,000 in property damage liability. These higher limits help protect you financially in severe accidents.

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

When it comes to car insurance, everyone is looking for ways to save. However, skimping on coverage to save a few dollars now could end up costing you more down the road.

Ensure you’re adequately protected and consider your specific needs before buying an auto insurance policy. Car insurance rates vary, so compare quotes from at least three different companies to find low-cost coverage 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.