Minneapolis, MN Car Insurance
How much does car insurance cost in Minneapolis?
Minneapolis is a thriving city with people constantly on the go. If you're planning on driving in Minneapolis, it's important to consider your car insurance options and budget for the cost. On average, a six-month policy will cost around $974 or $162 per month. However, rates may vary depending on the insurance company you choose.
Minneapolis drivers do pay more than the average for car insurance in Minnesota ($849 every six months) as well as the U.S. average of $880. Currently, 37% of our customers in Minneapolis said they're paying too much for car insurance. If you are wondering if your rates are too high, or simply want to educate yourself about car insurance in Minnesota, keep reading to learn more about insurance requirements and typical rates in Minneapolis.
|Car Insurance in Minneapolis vs. Minnesota||Avg. 6 Mo. Premium|
The cheapest car insurance companies in Minneapolis
Farm Bureau Mutual (IA group) is the cheapest at $89 per month or $536 for a six-month policy.
In second place is Auto-Owners, which costs $111 per month, or $668 for a six-month policy.
Another solid option is Nationwide as the third-cheapest insurance company. On average, a Nationwide policy in Minneapolis costs $738 per six-month policy ($123 per month).
Are you paying too much for auto insurance?
Minneapolis car insurance rates by company
In Minneapolis, the best cheap auto insurance for full coverage in 2023 is Farm Bureau at a rate of $89 per month or $536 for a six-month policy, followed by Auto-Owners at $668 for a six-month policy, which equates to approximately $111 per month. Both companies offer rates that are lower than the average in Minneapolis.
To learn more about thetop-rated car insurance companies based on The Zebra's Customer Satisfaction Survey, keep reading.
Cheapest car insurance companies in Minneapolis, MN
Dynamic auto insurance data methodology
Methodology: The auto insurance rates displayed above and throughout this page are dynamic, meaning the data will refresh when the most recent information is made available. Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage. This profile was adjusted based on common pricing factors used by major car insurance companies, like age, coverage level, driving record and others.
Shop around for the best rates
Comparing car insurance companies is the most straightforward way to find affordable rates. Let us do the work for you, so you can concentrate on selecting the best policy to suit your financial plan and personal needs. Enter your ZIP code to view quotes from Farm Bureau, Allstate, State Farm, and Nationwide (as well as other top companies) and locate the most inexpensive car insurance in Minneapolis.
Average car insurance in Minneapolis by rating factor
When it comes to car insurance rates in Minneapolis, rating factors play a crucial role. Every insurance company uses different factors to determine your rate, although most consider similar details like age and credit score. However, the weight given to these factors can differ significantly between insurers. For instance, one insurer may prioritize your driving record and claims history, while another may focus more on your credit score. To learn more about the rating factors that affect your car insurance rate in Minneapolis, keep reading.
In Minneapolis, the best insurance company for you can also change over time as your life circumstances and needs change. It's always a good idea to shop around and compare quotes every six months to a year, even if you've been with the same insurer for a while. This ensures you have the coverage that makes sense for your current situation. To learn more about finding the best insurance company for your needs in Minneapolis, keep reading.
Q: I didn't have an accident — Why is my insurance going up?
A: End-of-year earnings are also a major factor in determining how much you will pay for car insurance in Minneapolis. Even if you have never filed a claim, you may still end up paying more with a specific insurance company due to the increased cost of doing business in Minneapolis.
Auto insurance premiums by age in Minneapolis
Age plays a critical role in determining how much you will pay for car insurance in Minneapolis. Insurance companies are all about risk, and research indicates that teen drivers pose the most risk on the road and have a higher number of accidents. Therefore, young drivers typically face the most expensive rates for their premiums. Although this may come as a shock, these higher rates are in place to help offset the cost of claims paid by the insurance company.
In Minneapolis, there is a $3,024 disparity in annual rates paid by drivers in their teens versus drivers in their twenties. On the bright side, with additional time behind the wheel and a safe driving record, you may notice a significant reduction in just a few years. To keep premiums low in the interim, think about adding a teen driver to a parent or guardian's policy as opposed to obtaining their own policy. Additionally, inquire about discounts for students who perform well academically and drive safely.
Cheapest car insurance companies for teen drivers in Minneapolis, MN
Auto insurance premiums for minimum coverage in Minneapolis
Your premium for car insurance is determined by the coverage you select, in addition to personal factors such as credit score or age. In Minneapolis, the state minimum required level of car insurance is only carried by 32% of drivers. This is one method to reduce rates, but it may not be the best decision in the long run. If you only have the minimum required coverage, you may be underinsured in the event of an accident.
Adding collision coverage or comprehensive coverage (commonly known as "full coverage" when purchased together) will increase what you pay for insurance, but it will also give you more peace of mind. These coverages typically require a deductible, which can also impact your rates. Simply put, the higher your deductible, the cheaper your rates will be. You can adjust your deductible to try and get a better monthly price.
Also worth considering are add-ons like roadside assistance. While extras like this can add to your overall car insurance premiums, experts at The Zebra still recommend carrying such coverage options, as they can go a long way in extra protection and more confidence on the road.
Q: Can I lower my car insurance coverage?
A: Possibly — if your vehicle is paid off.
If you're financing or leasing your vehicle in Minneapolis, there is likely a required amount of insurance coverage that you need to carry. Those who own their cars outright have a bit more flexibility. If you're considering dropping comprehensive or collision coverage, we recommend obtaining the actual cash value of your car from a source such as Kelley Blue Book. If your car is worth $4,000 or less, you probably don't need to carry full coverage. This can lower your rates but also leaves you more vulnerable to paying for damages yourself.
Cheapest car insurance companies for minimum coverage in Minneapolis, MN
32% of our customers in Minneapolis carry minimum coverage, but this may not be the best option for everyone. While we understand state minimum or basic coverage is a cheaper solution, it does leave you at risk for damages that exceed your liability limits. Minnesota's 30/60/10 liability limits provide coverage for damage you cause up to $30,000 per person in bodily injury, $60,000 per accident in bodily injury and $10,000 for property damage. While this may be sufficient for a straightforward accident, it might not be for bodily injury claims or multi-vehicle accidents.
Learn more about insurance laws in Minnesota.
Minneapolis car insurance rates by credit score
In Minneapolis, credit score is a major factor in determining car insurance rates, as it is in most places. There are several reasons for this, and as with most things in the insurance world, it all comes down to risk. Studies have shown that drivers with lower credit scores tend to have more lapses in insurance coverage, engage in riskier driving behaviors, and file more claims.
Drivers in Minneapolis with poor credit scores (300-579) pay 160% more than drivers with excellent credit (800-850). This is a significant difference! However, 31% of drivers in Minneapolis have scores in the excellent (720+) category. As of 2023, Farm Bureau is the cheapest option for Minneapolis drivers in this credit range.
Cheapest car insurance companies for bad credit in Minneapolis, MN
Auto insurance rates with an at-fault accident
In Minneapolis, at-fault and collision-type accidents are the most common types of insurance claims, and you should expect either of them to result in rate increases. In Minneapolis, these increases can range from $46 to $77 per month, depending on the violation. This may not sound like much, but it adds up significantly over time. The cheapest insurer after an at-fault accident is Farm Bureau.
No matter where you reside, the key to keeping rates affordable is to be a safe driver. If you get a speeding ticket, are charged with reckless driving, or get a DUI or DWI, your rates will increase, and your premium may be impacted for three to five years after an accident. In some cases, more severe infractions can remain on your record even longer. While accidents do occur, practicing safe driving habits while behind the wheel can help protect you both physically and financially.
Cheapest car insurance companies after an at-fault accident in Minneapolis, MN
Minneapolis car insurance rates by violation
If you're curious about how much your rate in Minneapolis will go up due to various violations and claims, take a look at the information provided below.
Car insurance rate increases after violations and citations in Minneapolis, MN
|Accident/Violation||Avg. 6 Mo. Premium||% Rate Increase||$ Rate Increase|
|One Med/PIP claim||$981||1%||$7|
|Two Med/PIP claims||$1,026||5%||$51|
|One comp claim||$1,026||5%||$51|
|Two comp claims||$1,074||10%||$100|
|Failure to wear a seat belt||$1,106||13%||$132|
|Failure to show documents||$1,107||14%||$132|
|Driving without lights||$1,120||15%||$146|
|Child safety restraint||$1,120||15%||$146|
|Driving with expired registration||$1,128||16%||$154|
|Texting while driving||$1,194||23%||$220|
|Cell phone violation||$1,194||23%||$220|
|Following too closely||$1,194||23%||$220|
|Speeding 6 - 10 MPH over limit||$1,200||23%||$225|
|Failure to stop at a red light||$1,203||23%||$229|
|Wrong way/wrong lane||$1,206||24%||$232|
|Driving too slowly||$1,207||24%||$232|
|Speeding in school zone||$1,208||24%||$234|
|Failure to yield||$1,209||24%||$235|
|Speeding 11 - 15 MPH over limit||$1,217||25%||$242|
|Speeding 16 - 20 MPH over limit||$1,230||26%||$255|
|Passing school bus||$1,249||28%||$275|
|At-fault accident - less than $1000||$1,251||28%||$276|
|Operating a vehicle without permission||$1,290||32%||$315|
|In 65 MPH zone||$1,302||34%||$328|
|Speeding 21 - 25 MPH over limit||$1,304||34%||$330|
|At-fault accident - $1000-$2000||$1,390||43%||$416|
|At-fault accident - greater than $2000||$1,433||47%||$459|
|Refusal to submit to a chemical test||$2,060||111%||$1,086|
|Driving with a suspended license||$2,061||112%||$1,087|
|Leaving scene of an accident/hit and run||$2,190||125%||$1,215|
Why is car insurance in Minneapolis so expensive?
In Minneapolis, despite car insurance potentially seeming expensive based on unique situations, auto insurance rates are relatively affordable for a variety of reasons. One factor is that the cost of living in Minneapolis is relatively low, which implies that businesses can operate without the additional expenses associated with larger cities.
Here's a rundown of why car insurance rates can vary in Minneapolis and why your rate may appear more expensive:
In Minneapolis, where you reside has an impact on how much you pay for car insurance. Although this is somewhat beyond your control, it does influence risk. Certain neighborhoods are simply more vulnerable to theft, other crimes, and uninsured drivers than others. If you live in one of these neighborhoods, your rate will be higher than if you live in a safer area.
Expensive Minneapolis ZIP codes: 55411, 55412, 55407, 55408, 55404
Cheap Minneapolis ZIP codes: 55438, 55442, 55446, 55447, 55424
The damage caused by tornadoes and other similar weather-related damage can and has bankrupted insurance companies. Minnesota may not be at risk for hurricanes, but they do experience their share of serious weather. Because of this risk, it can be more expensive for auto insurance companies in Minneapolis to do business. As such, they will raise their rates to anticipate further weather-related losses.
Flooding is one of those things that happens just about anywhere if conditions are right. Damage to your vehicle caused by flooding falls under your comprehensive coverage, so if you're concerned about this risk at all, or if you have a newer or nice vehicle, we suggest carrying comprehensive coverage as part of your Minneapolis car insurance policy.
Minneapolis, like many areas in the Midwest, continues to grow as more people move away from coastal cities to more affordable locations in the country. But more people equate to more vehicles and therefore more accidents. The costs of accident-related claims generally get passed along to other drivers through higher rates, even if you're a safe or infrequent driver.
People operating vehicles without insurance coverage also pose a significant risk. Our research shows that 31% of drivers in Minneapolis are not currently insured. Although this is lower than in some places, it is still worth noting, and luckily Minnesota requires uninsured and underinsured motorist coverage, which will help you out if you're involved in an accident with someone lacking coverage.
Bundling insurance policies in Minneapolis
Car insurance prices may be going up nationally, but there are still ways to save. When shopping for a new auto insurance policy, consider bundling your home or renters insurance. By doing this, you can often qualify for a significant discount — you might be able to save 10% or more on your combined premiums. Learn more about bundling home and car insurance.
Cheapest car insurance companies for bundling home and auto insurance in Minneapolis, MN
Minneapolis drivers should be aware that some factors affecting auto insurance rates are beyond their control. Nonetheless, you can take steps to reduce your premiums as a responsible driver. For example, it's a good idea to check your rates every six months to a year. This is particularly crucial if you've recently had a significant life event or personal change that might influence your premiums. By comparing quotes from various insurance providers, you can find an affordable policy that fits your requirements.
Find the best rates for both auto and home insurance in minutes!
Frequently asked questions
How much is car insurance in Minneapolis?
Minneapolis drivers can obtain a six-month auto insurance policy at an average cost of $970, which translates to a monthly rate of $162. This rate is higher than both the state and national averages.
What is the cheapest car insurance in Minneapolis?
For Minneapolis residents, Farm Bureau Mutual (IA group) offers the cheapest rates for auto insurance, averaging at $536 for a six-month policy.
What is the minimum car insurance needed in Minneapolis?
Minnesota requires minimum liability coverage at 30/60/10. The state also mandates that drivers carry 25/50 in both uninsured and underinsured motorist coverage. Optional in many states, personal injury protection (PIP) of $40,000 is also required.
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.