If you’re looking for the best car insurance in Minnesota, you’re in the right place. With dozens of providers offering various rates and coverage options, finding the right policy can be overwhelming. In this guide, we’ll break down the top car insurance companies in Minnesota, their rates, coverage options, and expert tips to help you save money on your policy in 2025.
Why Car Insurance in Minnesota is Essential
Minnesota is a no-fault state, meaning that your insurance covers your medical expenses regardless of who is at fault in an accident. The state mandates specific minimum coverage requirements, but opting for additional coverage can protect you from costly repairs and liabilities.
Minimum Car Insurance Requirements in Minnesota
According to the Minnesota Department of Commerce, drivers must carry the following minimum liability coverage:
- $30,000 per person for bodily injury
- $60,000 per accident for bodily injury
- $10,000 for property damage
- $40,000 in Personal Injury Protection (PIP)
- $25,000 per person / $50,000 per accident for uninsured motorist coverage
- $25,000 per person / $50,000 per accident for underinsured motorist coverage
While these are the legal requirements, many drivers opt for higher coverage limits to provide extra protection.
Best Car Insurance Companies in Minnesota (2025)
We analyzed multiple insurers based on affordability, customer satisfaction, and coverage options. Here are the top providers in Minnesota for 2025:
1. Auto-Owners Insurance – Best for Affordable Rates
✅ Average Full Coverage Rate: $1,773/year ($148/month)
✅ Average Minimum Coverage Rate: $489/year
✅ Pros: Excellent customer service, competitive rates, great bundling discounts
✅ Cons: Only available through agents
Auto-Owners consistently ranks as one of the cheapest car insurance providers in Minnesota. With strong financial stability and an independent agent network, they offer personalized service and multiple discounts.
2. Geico – Best for Discounts
✅ Average Full Coverage Rate: $2,947/year ($246/month)
✅ Average Minimum Coverage Rate: $752/year
✅ Pros: Affordable rates, great digital tools, many discounts
✅ Cons: Limited local agent support
Geico provides excellent discounts for good drivers, military personnel, and students. Their user-friendly mobile app makes it easy to manage your policy.
3. State Farm – Best for Young Drivers
✅ Average Full Coverage Rate: $2,361/year ($197/month)
✅ Average Minimum Coverage Rate: $720/year
✅ Pros: Strong local agent network, great telematics program for young drivers
✅ Cons: Higher rates without discounts
State Farm’s Steer Clear program helps young drivers save money by improving their driving skills, making it one of the best insurers for teens and college students.
4. American Family – Best for Customer Satisfaction
✅ Average Full Coverage Rate: N/A
✅ Average Minimum Coverage Rate: N/A
✅ Pros: High customer satisfaction ratings, customizable coverage
✅ Cons: Limited availability
American Family consistently ranks high in customer service and offers extensive coverage add-ons, making it an excellent choice for personalized policies.
5. Farmers – Best for Custom Coverage
✅ Average Full Coverage Rate: $3,816/year ($318/month)
✅ Average Minimum Coverage Rate: $1,325/year
✅ Pros: Unique policy add-ons, strong financial stability
✅ Cons: Higher-than-average premiums
Farmers offers OEM parts replacement, roadside assistance, and classic car coverage, making it ideal for drivers who want comprehensive protection.
How to Get the Best Car Insurance in Minnesota
Here are some expert tips to save money on your Minnesota car insurance policy:
1. Compare Multiple Quotes
Insurance rates can vary widely. Use online comparison tools or speak with an independent agent to find the best deal.
2. Take Advantage of Discounts
Many insurers offer discounts for:
- Good drivers (accident-free record)
- Bundling home and auto insurance
- Good students (GPA-based savings)
- Paying premiums annually instead of monthly
3. Increase Your Deductible
Raising your deductible from $500 to $1,000 can lower your monthly premiums, but be sure you can afford the out-of-pocket expense in case of a claim.
4. Maintain a Good Credit Score
A higher credit score can significantly reduce your car insurance rates in Minnesota. Paying bills on time and reducing debt can help improve your score.
5. Enroll in a Telematics Program
Many companies like State Farm (Drive Safe & Save) and Geico (DriveEasy) offer discounts for using their tracking apps to monitor safe driving habits.
Final Thoughts on Car Insurance in Minnesota
Finding the best car insurance in Minnesota requires comparing multiple providers, considering discounts, and choosing the right coverage for your needs. Auto-Owners and Geico offer some of the most affordable rates, while State Farm is excellent for young drivers.
By following our tips, you can secure affordable, high-quality coverage that protects you and your vehicle while complying with Minnesota’s legal requirements.
Frequently Asked Questions (FAQs)
1. What is the cheapest car insurance in Minnesota?
Auto-Owners Insurance typically offers the lowest rates, averaging $1,773/year for full coverage.
2. What is the penalty for driving without insurance in Minnesota?
Penalties include fines up to $1,000, license suspension, and possible jail time.
3. Does Minnesota require uninsured motorist coverage?
Yes, Minnesota mandates $25,000 per person / $50,000 per accident in uninsured motorist coverage.
4. Can I get car insurance in Minnesota with a bad driving record?
Yes, but expect higher premiums. Geico and Farmers offer policies for high-risk drivers.
5. How can I lower my car insurance in Minnesota?
Compare quotes, bundle policies, maintain a good credit score, and enroll in telematics programs.
By following these strategies, you can find the best car insurance in Minnesota that meets your needs and budget
Want to know more about other insurances, Read our latest articles.
