Minnesota Car Insurance
Everything You Need to Know About Car Insurance in Minnesota
From far up in the northern Midwest, Minnesota was very visible in the early years, as the U.S. developed into the country it is today. Bordered by Canada, Lake Superior, the Mississippi River, and the prairies of the Dakotas, the state grew from a frontier territory into a powerhouse of agriculture, industry, and innovation. Minneapolis and St. Paul, known together as the Twin Cities, became major centers for milling, rail transport, and finance.
Today, Minnesota is a thriving place to do business, home to a strong entrepreneurial community and over a dozen Fortune 500 companies, including General Mills, Target, 3M, Best Buy, and UnitedHealth Group. Famous locations in the state include the Mall of America in Bloomington, the Boundary Waters Canoe Area Wilderness, Voyageurs National Park, and the vibrant arts and theater scene in Minneapolis.
The state covers just under 87,000 square miles and is home to nearly 6 million residents. Traffic can be an issue here with congestion around the Twin Cities, and the state’s long, snowy winters are legendary, bringing icy roads, whiteout conditions, and sudden temperature swings. Rain, fog, and strong winds can also affect visibility and road safety throughout the year.
Connecting with an expert InsureOne agent can help you secure the best car insurance in Minnesota so you can explore the state with confidence, knowing you’re protected if an accident occurs.
How Much Does Car Insurance Cost in Minnesota?
The average cost of full coverage car insurance in Minnesota is about $2,591, while minimum liability costs $1,099. The average annual costs for minimum coverage in Minnesota range from approximately $335 to $720, while full coverage averages about $2,198 to $2,639. The average annual cost of minimum auto insurance in Minnesota is $717, while the average annual cost for full coverage is $2,568 according to Bankrate.
The average cost of car insurance in Minnesota is reported to be $1,975 per year, with USAA having the cheapest car insurance average rate at $1,387 per year. These numbers are well above the national average of $2,014 for full coverage and $622 for minimum liability.
While many local factors can contribute to the cost of coverage, the primary reason why auto insurance in Minnesota is so costly is that it is a no-fault state with added personal injury protection (PIP) and uninsured/underinsured motorist coverage requirements for every driver.
Rates can also vary widely between car insurance companies, so it’s important to compare quotes from more than one insurance company. Coverage options and coverage limits can affect your rates and should be carefully considered when comparing policies. Insurance rates in Minnesota vary significantly based on factors such as driving record, vehicle type, and location (ZIP code).
Factors that can impact car insurance rates include the type of coverage selected, deductibles, and liability limits, which should be consistent when comparing quotes from different insurers.
What Does It Mean If Minnesota Is a No-Fault State?
No-fault laws governing Minnesota car insurance affect how insurers deal with claims. When it comes to accident-related property damages, all states require the negligent driver or their insurer to pay. The primary difference between states with at-fault laws vs. no-fault rules in Minnesota pertains to personal injury expenses.
In at-fault states, the driver who caused the accident is responsible for personal injury costs, whereas in no-fault states, each driver is first compensated by their own insurer, regardless of who caused the accident. Minnesota is a “no-fault” state, meaning your own insurance covers your medical bills and economic losses up to specific limits, regardless of who caused the accident. As mentioned, the state mandates PIP to help cover those personal injury expenses so drivers do not have to pay out of pocket.
Personal Injury Protection (PIP) in Minnesota has a minimum coverage of $40,000, which includes $20,000 for medical expenses and $20,000 for non-medical expenses like lost wages. PIP helps pay for medical expenses resulting from an accident and helps cover lost wages if you are unable to work due to your injuries. This coverage provides important financial protection by reducing out-of-pocket costs for policyholders after an accident.
Affordable Car Insurance Rates Comparison by Cities in Minnesota
In order to compare car insurance quotes in Minnesota, your agent needs to know your exact location. An insurance quote is an estimate of your insurance premium based on the information you provide, while a car insurance quote specifically refers to the estimated cost for auto coverage. These quotes help you estimate your costs before purchasing a policy. It’s important to compare quotes from multiple providers to find the best coverage and rates for your needs. As the table below shows, rates can vary significantly by where you live in the state.
| City | Full Coverage Car Insurance In Minnesota | State Minimum Liability Insurance In Minnesota |
|---|---|---|
| Aitkin | $211 | $45 |
| Bloomington | $236 | $65 |
| Brooklyn Park | $253 | $75 |
| Eden Prairie | $222 | $60 |
| Edina | $234 | $63 |
| Ely | $244 | $43 |
| Lanesboro | $199 | $43 |
| Maple Grove | $223 | $60 |
| Minneapolis | $282 | $79 |
| St. Paul | $307 | $87 |
Our average auto policy costs are based on a male driver, aged 30, with a clean driving record. Liability insurance in Minnesota is the state‑required minimum. Full coverage is based on a 100K/300K/100K policy. Your costs will depend on your individual circumstances.
When comparing car insurance quotes, it’s important to ensure that you are comparing the same coverage options across different providers to get an accurate assessment of costs and benefits.
How Bundling Your Vehicle and Homeowners Insurance Can Save You Money in Minnesota
If you are trying to figure out how to get affordable car insurance in Minnesota, you should look into bundling your auto and home policies. Many insurance providers offer multi-policy discounts, which incentivize customers to purchase multiple types of insurance from the same company, resulting in lower overall costs.
By choosing a multi-policy option, you can take advantage of significant savings and save money on your premiums. Bundling your auto coverage with homeowners insurance not only provides convenience but also unlocks additional insurance discounts, such as those for safe driving or insuring multiple vehicles. If you have an active policy with another provider, you may also qualify for extra discounts when switching to a new insurer.
Your InsureOne agent will get you the best car insurance in Minnesota with the highest bundling discount available, but you are likely to get a greater price reduction if you live in St. Paul, where rates are high, than in Lanesboro, where insurers have less room to offer a high discount.
Discounts for Car Insurance in Minnesota
Bundling is one of many car insurance discounts and insurance discounts available for car insurance in Minnesota. Your agent will help you discover many more discounts that help lower your premiums, including the following:
- Safe driver: Maintaining a good driving record can help you qualify for safe driver discounts and lower your premium.
- Telematics programs: Participating in telematics programs, such as Drivewise® or RightTrack®, and actively participating by demonstrating safe driving behavior, can provide discounts based on your driving habits—potentially saving drivers up to 30% on their premiums.
- Low mileage
- Good driver
- Defensive driver
- Military
- Antitheft
- Loyalty
- Good student
You may also qualify for additional car insurance discounts by meeting certain criteria set by your insurer.
What Are the Car Insurance Laws in Minnesota?
Minnesota auto insurance laws are pretty common. Drivers must follow Minnesota DMV insurance requirements, or they will be subject to penalties. Minnesota law requires drivers to carry certain types of insurance coverage, including car insurance coverage and auto insurance coverage such as liability, personal injury protection (PIP), and uninsured/underinsured motorist coverage.
When selecting a policy, Minnesota drivers should carefully consider their coverage limits and explore various coverage options to ensure their needs are met. Adequate financial protection is important to help avoid significant out-of-pocket expenses after an accident, especially if another driver is uninsured or underinsured. While state minimums are required, it is often recommended to have higher liability limits for better asset protection.
The Minnesota Department of Commerce provides resources for consumers to understand their rights and shop for insurance coverage. While Minnesota does not require SR-22 insurance, drivers with serious violations on their records may need to file an insurance certification with the Minnesota Driver and Vehicle Services (DVS). Here is a breakdown of these and other Minnesota auto insurance laws:
What Are the Minimum Car Insurance Requirements in Minnesota?
As with other states, Minnesota DMV insurance requirements mandate state minimums of car insurance coverage that every driver must obtain before operating a vehicle, including:
- $30,000 for bodily injury per person.
- $60,000 bodily injury per accident.
- $10,000 property damage per accident.
- $40,000 Personal Injury Protection (PIP) per person, per accident.
- $25,000 uninsured motorist coverage per person.
- $50,000 uninsured motorist coverage per accident.
Uninsured motorist coverage helps protect you financially if you are involved in an accident with a driver who does not have insurance or does not have enough insurance to cover the damages.
These coverage limits represent the maximum amounts your policy will pay for each type of coverage. It’s important to compare and understand these limits to ensure you have adequate protection.
Other than the property damage requirement, these Minnesota car insurance minimums are slightly higher than average for the U.S., and the PIP and uninsured motorist coverage requirements are not the most common in other states.
In Minnesota, full coverage car insurance includes collision and comprehensive coverage, which cover damages to the insured’s vehicle beyond the state minimums.
What Is the Penalty for Driving Without Insurance in Minnesota?
If you are caught driving without auto insurance in Minnesota, you may be found guilty of a misdemeanor. Two more such violations within ten years could result in a gross misdemeanor. In addition, if you drive without Minnesota car insurance, you will be subject to the following penalties:
- A minimum fine of $200.
- Possible community service requirement in lieu of the fine.
- Driver’s license suspension until you show proof of coverage.
- Vehicle registration suspension until you show proof of coverage.
As mentioned, there is no requirement for SR-22 insurance in Minnesota. However, you will have to show proof of coverage before the court will reinstate your driving privileges.
What Factors Does Minnesota Law Allow in Determining Your Premiums?
Minnesota auto insurance laws do not allow insurers to base their rates on employment status, residential status, or coverage history, but they may use the following factors:
- Age
- Gender
- Credit history
- Vehicle type
- Location
- Marital status
- Driving record
- Driving experience
- Driving history (A clean driving history can help you qualify for lower rates and discounts, while accidents or violations may increase your premium.)
When choosing car insurance in Minnesota, it’s important to consider your unique auto insurance needs. Coverage options and limits should be tailored to your individual circumstances, such as your vehicle, driving habits, and personal protection requirements.
What Happens If I Damage Property in Minnesota?
If you cause a small accident during rush hour in St. Paul, and the damages to the other vehicle total $5,000, your policy’s $10,000 minimum for property damage will help cover the other party’s loss if it is a covered accident. Insurance helps cover these costs up to your policy’s limits, providing important financial protection against unexpected expenses.
However, if you cause a major accident on the I-35 due to slippery roads from a recent snowstorm, you will likely exceed all of the limits on a basic Minnesota car insurance policy. Many drivers increase their minimums to avoid having to pay out of pocket in such situations.
Your InsureOne agent can help you compare car insurance quotes in Minnesota with increased limits so you can personalize a plan with affordable car insurance in Minnesota that provides adequate financial protection for this state.
What Is Driving Like in Minnesota?
Driving around the state is pretty much what you would expect. Minnesota drivers must adapt to challenging weather conditions throughout the year. You will have lots of traffic in cities like Minneapolis and St. Paul, and a quiet, serene drive in the rural areas like Ely or Lanesboro.
The state gets excessive snow in the winter, which makes driving anywhere difficult, but highways like the 94, 35, 12, 14, 10, and 169 are particularly dangerous during these times. Safe driving behavior is especially important in Minnesota’s winter conditions to help prevent accidents and qualify for potential insurance discounts.
Fog in the Lake Superior region and the Mississippi, Minnesota, and St. Croix river valleys can cause major visibility issues at times. It is always worthwhile to check conditions before you head out to ensure you have a safe, pleasant ride to your destination.
How Many Uninsured/Underinsured Motorists Are in Minnesota?
In 2023,11.3% of the state’s drivers were uninsured. Uninsured motorist coverage helps pay for medical expenses and lost wages if you are injured by an uninsured or underinsured driver. While everyone who has auto insurance in Minnesota must have uninsured/underinsured motorist coverage, the state’s minimum limits are decent but not very high. You should discuss the idea of increasing these limits with your agent to avoid having to cover expenses yourself should an uninsured or underinsured motorist who cannot pay out of pocket crash into you.
Get the Best Car Insurance in Minnesota Today
Your expert agent at InsureOne will gladly answer questions like “How much does car insurance cost in Minnesota?” or “What are the car insurance laws in Minnesota?” We customize policies to your unique preferences and take the guesswork out of how to get affordable car insurance in Minnesota.
Most importantly, we help you get the best car insurance in Minnesota to ensure that you and your family have the protection you need if you ever get in an accident. Contact our bilingual experts to get a quote online, stop by one of our offices, or call us at 800‑836‑2240.
FAQs About Car Insurance in Minnesota
How Much Does Car Insurance Cost in Minnesota?
Minimum liability insurance in Minnesota costs an average of $1,099, while full coverage costs $2,591.
What Are the Minimum Car Insurance Requirements in Minnesota?
Minnesota DMV insurance requirements mandate the following coverages: $30,000 for bodily injury per person and $60,000 per accident; $10,000 property damage per accident; $40,000 PIP per person, per accident; $25,000 uninsured/underinsured motorist coverage per person and $50,000 per accident.
Is Minnesota an At-Fault or No-Fault State for Car Insurance?
Minnesota is a no-fault state. If you are in an accident, you will have to pay for your own medical bills, regardless of whether you were responsible for the incident, and the negligent driver will be responsible for property damages.
What Factors Influence Car Insurance Rates in Minnesota?
Minnesota car insurance regulations do not allow insurers to use employment status, residential status, or coverage history, but they may use age, gender, credit history, vehicle type, location, marital status, driving record, and driving experience.