Car insurance rates in the Twin Cities run about 50 percent higher than those in Mankato, the city with the cheapest auto insurance in Minnesota. You can see comparable state car insurance rates for every city and town in Minnesota below.
Minnesota state law requires the following minimum car insurance coverage:
Minimum bodily injury liability
Minimum property damage liability
Uninsured/underinsured motorist bodily injury
Personal injury protection
Minnesota Car Insurance Rates by ZIP Code & City
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CarInsurance.com commissioned Quadrant Information Services to provide a report of average auto insurance rates for a 2014 Honda Accord for every ZIP code in the United States. We calculated rates using data for six large carriers (Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm).
Averages are based on insurance for a single 40-year-old male who commutes 12 miles to work each day, with policy limits of 100/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage. This hypothetical driver has a clean record and good credit. The rate includes uninsured motorist coverage. Average rates are for comparative purposes. Your own rate will depend on your personal factors and vehicle.
Minnesota requires a minimum of $40,000 in PIP; $20,000 of that amount is allowed for medical expenses, and $20,000 may be used for lost wages or other nonmedical expenses.
In addition to PIP, Minnesota mandates bodily injury liability coverage of at least $30,000 per person ($60,000 per accident), plus $10,000 of property damage liability. This property damage limit is low; if you have savings and a home to safeguard, we recommend you increase all of your liability limits.
Uninsured motorist bodily injury (UM) and underinsured motorist (UIM) are separate coverages, but both are required as part of a Minnesota auto insurance policy with limits of $25,000 per person ($50,000 per accident).
Rental car coverage: Minnesota law mandates that every car insurance policy include, under the property damage liability section, $35,000 in coverage for damage to (or loss of use of) a rental car -- without a deductible being due.
Discounts: State law requires auto insurers offer drivers age 55 and older a 10 percent discount for completing an approved defensive driving course. A discount of 5 percent off of comprehensive is required for vehicles with an anti-theft device.
Electronic proof of insurance: Minnesota law allows an insurance identification card to be provided in electronic format.
Uninsured motorist penalties for Minnesota: You may be fined $200 to $1,000, be sentenced to 90 days in jail, have your license and registration suspended and have your car impounded.
Largest car insurance companies in Minnesota by market share
Company / Group
Direct Premiums Written ($)
Market Share (%)
State Farm Group
Progressive Insurance Group
Amer Family Insurance Group
Farmers Insurance Group
Allstate Insurance Group
Liberty Mutual Insurance Companies
Auto-Owners Insurance Group
Berkshire Hathaway Insurance
Auto Club Group
Source: A.M. Best market share rankings are based on direct premiums written in 2013.