The Best Cheap Minnesota Car Insurance for 2024

There is no getting around the fact that car insurance is necessary in the Land of 10,000 Lakes, which makes the job of finding the cheapest car insurance in Minnesota even more critical. Here, we've combed through insurance providers to locate the most affordable car insurance in Minnesota and broken them down by the type of driver most likely to be on the lookout for low-cost car insurance.

• Cheapest for typical drivers: Nationwide
• Cheapest for military members: Nationwide
• Cheapest for drivers with one accident: State Farm
• Cheapest for drivers with one speeding ticket: Nationwide
• Cheapest for drivers looking for minimum coverage: USAA

Cheapest for typical drivers

Cheap auto insurance in Minnesota is offered by some of the best car insurance companies in the U.S. For a typical driver with a clean driving record (no accidents or tickets), four companies offer the most affordable car insurance quotes in Minnesota. The insurer with the lowest rate is Nationwide, with an average yearly quote of $1,337, or $111 per month.

Nationwide is followed by three other big names in Minnesota auto insurance:

• Geico, offering an average annual rate of $1,387
• State Farm, coming in with an average annual rate of $1,505
• USAA, offering military members and their families an average rate of $1,778

Cheapest for military members

Military members, former members of the military, and their families frequently score the most affordable car insurance rates in Minnesota in thanks for their service. Nationwide currently offers the lowest rates to military members, with an average annual premium of $1,314.

Not far behind are three other Minnesota auto insurance carriers:

• Geico, offering an average yearly rate of $1,430
• State Farm, with an average annual rate of $1,505
• USAA, bringing up the rear with a rate of $1,797

Cheapest for drivers with one accident

It is impossible to deny the impact a single accident can have on insurance rates. Until that accident falls off a driver's record, they can expect to pay higher rates. Here, we looked for the companies that appear to be the most forgiving. The leader of the pack is State Farm. This longtime industry leader offers an annual insurance rate of $1,740 to drivers with an accident on their record.

State Farm is followed by three other carriers, among the best car insurance companies in Minnesota:

• American Family, quoting an average annual rate of $1,873
• Nationwide, staying competitive with an average rate of $1,892
• Geico, coming in with an average annual rate quote of $2,298

Cheapest for drivers with one speeding ticket

Speeding tickets are another way to drive up Minnesota auto insurance rates. As we searched for the best car insurance in Minnesota for drivers with one speeding ticket on their record, we found Nationwide to be the hands-down winner. With an average annual premium of $1,536, Nationwide beat out some of the best-known names in Minnesota auto insurance.

Those big names include runners-up:

• State Farm, offering drivers with one speeding ticket an average rate of $1,622
• Geico, neck and neck with State Farm, offering an average rate of $1,646
• USAA, offering military members and their families a rate of $2,141

Cheapest for drivers looking for minimum coverage

Minnesota state car insurance laws make it clear that drivers must carry, at the least, minimum car insurance coverage. Drivers looking for cheap liability car insurance in Minnesota have four competitive options, with USAA being the least expensive at $435.

Those who do not qualify for USAA coverage have three more competitive companies from which to choose. They are:

• Geico, offering minimum coverage at an annual rate of $468
• North Star Mutual, with an average annual rate of $472
• State Farm, covering drivers for an average yearly rate of $496

Average car insurance cost in Minnesota compared to the national average

The average rate for Minnesota auto insurance is $2,652, closely in line with the national average of $2,646.

Minnesota auto insurance laws

Minnesota car insurance laws clearly state that coverage is required. In Minnesota, driving without insurance is punishable by a fine of up to $1,000, possible revocation of license and registration, reinstatement fees of $30, and 90 days in jail. Typically, a first-time offender can expect to pay a $200 fine and receive no time in jail. Penalties increase if the driver is caught driving without insurance more than one time.

Minnesota minimum coverage requirements

Minnesota minimum car insurance must include personal injury protection (PIP), liability, uninsured, and underinsured coverage. They break the amounts down by type of coverage as follows:

PIP

• $40,000 per person
• $20,000 for hospital/medical expenses
• $20,000 for non-medical expenses

Liability

• $30,000 for injuries to one person
• $60,000 for injuries to two or more people
• $10,000 for property damage

Uninsured motorist

• $25,000 for injuries to one person
• $50,000 for injuries to two or more people

Underinsured motorist

• $25,000 for injuries to one person
• $50,000 for injuries to two or more people

How to get cheap auto insurance in Minnesota

Drivers who ask, "How much is car insurance in Minnesota?" may also wonder about ways to save money on their annual premiums. The three most straightforward ways are to keep a clean driving record, pay attention to their credit score, and search through the many discounts offered by most auto insurance companies.

Driving record

If a driver has been involved in an accident or has a speeding ticket on their record, insurers become nervous, worried that perhaps the driver is not as careful as they should be. For that reason, they charge higher premiums to those they believe are most likely to file a claim. Until the accident falls off the driver's record, they can expect to pay more in annual premiums. One of the easiest things for a driver is to remain mindful of their speed and drive defensively, cutting down on the odds of an accident (or ticket) and ultimately saving money on Minnesota auto insurance.

Credit score

Studies have long shown that drivers with high credit scores tend to make the least insurance claims. That's the primary reason insurance companies check a driver's credit report before offering a quote. The higher the score, the lower the quote.

Discounts

This list of discounts represents the tip of the iceberg. Each insurance carrier has its own list of potential discounts, with something to fit just about any driver. Before settling on a particular insurance company, it can pay to check out their list of discounts and pocket the savings. Here are some of the most common discounts on car insurance:

• Good student discount
• Defensive driver discount
• Pay-in-full discount
• Away-at-school discount
• Occupational discount
• Alumni discount
• Professional organization discount
• Safety feature discount
• Usage-based discount
• Multi-car discount
• Multi-policy discount
• New car discount

Other things to consider when looking for car insurance in Minnesota

As mentioned, Minnesota requires drivers to carry PIP insurance as part of its minimum coverage law. PIP is a type of no-fault insurance, meaning it covers medical expenses no matter which driver is at fault. It sometimes includes lost wages as well. PIP can even help those who are not driving. For example, if a covered driver is out walking or riding their bike and is hit by a car, PIP will cover them through their auto insurance.

Finally, when a driver finds an insurance company they like with rates they can afford, it may pay to move all their insurance needs to that company. That way, they can score one final discount by bundling products.

RELATED: Need homeowners insurance? Check out The Ascent's guide to the best cheap Minnesota homeowners insurance.