Minnesota Auto Insurance with Bad Credit

The Zebra
March 12, 2019

It can be tough to find cheap auto insurance with bad credit. Auto insurers utilize credit score as a major rating factor, pricing policies based in part on drivers’ credit scores. Since auto insurance companies rely on data that show drivers with bad credit are more apt to file car insurance claims, the companies compensate for that extra risk by charging more expensive rates.

How much you pay for car insurance with a low credit score depends on where you live, which insurance company you use, and a variety of other factors. We've gathered below typical insurance rates for drivers with bad credit in major Minnesota cities and rates from a few of the most popular auto insurance companies, plus tips on how to save on car insurance with bad credit in Minnesota.


Car insurance for drivers with poor credit in Minnesota:

  1. Average premiums
  2. Rates by city
  3. Rates by company

Auto insurance rates with bad credit in Minnesota

Drivers in Minnesota pay an average penalty of $1,350 each year for having a credit score at the low end of the scale. Drivers in either the “poor” or “below fair to poor” credit tier will also pay above-average rates for a car insurance policy.


MINNESOTA AUTO INSURANCE PRICES WITH BAD CREDIT

Credit TierAverage Annual Rate in Minnesota
Worst$2,608
Poor$2,381
Below Fair to Poor$2,146
Average — All Credit Tiers$1,258

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Auto insurance rates with bad credit in Minnesota cities

Your auto insurance rates will also vary depending on the precise area in which you live. Insurers look at your address to better understand how likely you are to file an insurance claim: the denser and claim-prone your immediate area is, the more expensive your rates.

See below major Minnesota cities and their typical car insurance costs for those with bad credit.


POOR CREDIT CAR INSURANCE RATES IN MINNESOTA CITIES

CityAverage Annual Rate — Worst CreditAverage Annual Rate — Poor CreditAverage Annual Rate — Below Fair to Poor Credit
Minneapolis$3,480$3,179$2,866
Rochester$2,349$2,149$1,939
Duluth$2,608$2,380$2,145
Bloomington$2,877$2,625$2,364
Brooklyn Park$2,929$2,676$2,411

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Cheap car insurance companies for bad credit in Minnesota

Another factor that contributes to how much you pay for auto insurance is the auto insurance company you buy from. Each and every auto insurance company prices its policies differently, giving rating factors varying weights in their pricing calculations. Credit score can be a major price differentiator between otherwise-similar car insurance companies. In Minnesota, the most affordable insurance company for drivers with bad credit is North Star Mutual, which offers a discount of $39 per year in comparison to the second-cheapest company, American Family.

See prices from leading car insurance companies in Minnesota for drivers with bad credit.


MINNESOTA CAR INSURANCE PREMIUMS WITH BAD CREDIT — POPULAR COMPANIES

CompanyAverage Annual Rate — Worst Credit Tier
North Star Mutual$1,992
American Family$2,030
Owners Insurance Company$2,068
State Farm$2,391
Western National$2,706

If you're dealing with the difficulty of buying auto insurance with a low credit score, keep these tips in mind:

  1. See car insurance quotes
  2. Be smart with your claims
  3. Know what determines car insurance rates