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Minnesota Car Insurance


Car insurance rates in the Twin Cities can run about $600 higher than those in Elmore, the city with the cheapest car insurance in Minnesota, about two hours south. You can see comparable state car insurance rates for every city and town in Minnesota below. Enter a ZIP code, choose an age group and coverage level to see the highest and lowest rate for your area fielded from major insurers. That way you can know what to expect to save by shopping around.

The average car insurance rate in Minnesota is $1,187 a year. That’s about $190 less than the national average, according to CarInsurance.com’s rate analysis. But where you live in Minnesota will affect what you pay. When setting your rate, insurance companies take into account the severity and frequency of claims in your neighborhood, your driving record, the type of car you drive and other variables. That’s why the price for the same coverage can vary significantly among insurance companies — and why you should compare rates.

For Minneapolis ZIP code 55404, the highest rate among six carriers is $2,150. That’s over $1,000 more than the lowest ($1,031). When shopping for car insurance, use our average car insurance rates tool to compare rates. Enter a ZIP code to see the average premium for your neighborhood. You will also see the highest and lowest rates from the six major carriers surveyed to get an idea of what the most affordable car insurance price is in your area.

Cheap car insurance in Minnesota

Minnesota car insurance requirements

Minnesota state law requires the following minimum car insurance coverage:
Minimum bodily injury liability$30,000/$60,000
Minimum property damage liability$10,000
Uninsured/underinsured motorist bodily injury$25,000/$50,000
Personal injury protection$40,000

Minnesota has a no-fault car insurance law. If you're injured in an auto accident, no matter whose fault, you claim against your own personal injury protection (PIP) coverage first. If your PIP limits are exceeded, then claims can be made against the at-fault party's bodily injury liability coverage.

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).

The cheapest car insurance in Minnesota that you can get will typically be the minimum limits required to drive legally. But more protection that provides a financial safety net should you get in an accident doesn’t cost that much more, and in some cases is about the same price, or even a few dollars less.

You’ll see in the chart below that hiking your coverage to liability limits of $50,000 per person ($100,000 per accident), and $50,000 for property damage costs less than the lower state minimum limits. That's because in some instances insurance companies take into account the amount of coverage you had prior to buying or renewing your policy. If you had higher liability limits in your past, they consider you less of a risk and therefore you get a lower rate. For example, if you have just state minimum coverage, and then buy another state minimum policy, you won’t get a price break. The same is true if you have state minimum limits and then go to higher limits, of say, 50/100/50. But if you had 50/100/50 previously and then buy another 50/100/50 policy, you do get a price break.

Increasing your insurance from the state minimum to full coverage with a $500 deductible costs, on average, $608 more, or about $50 a month.

Coverage limitsAverage annual rate
Liability Only – state minimum$579
Liability Only - 50/100/50 BI/PD$575
Full Coverage - 100/300/100 BI/PD$500 Comp/Collision deductible$1,187

*The table shows the average annual rate of nearly every ZIP code in Minnesota from up to six major insurance companies. Rates are for a male driver, age 40, with a clean record and good credit for a 2016 Honda Accord. Data was provided for CarInsurance.com by Quadrant Information Services.

Recommended car insurance coverage

If you’re on board to buy more than bare-bones coverage, you may be wondering exactly how much more car insurance you need.

Use our How Much Car Insurance Do You Need? tool to get a recommendation.



We recommend you buy more insurance than is required to legally drive a car in your state, especially if you have savings and assets. The more money you have, the more likely you are to be sued following a car accident should your insurance be insufficient to cover all the expenses. If your net worth is:

  • less than $50,000, choose at least 50/100/50
  • between $50,000 and $100,000, choose at least 100/300/100
  • more than $100,000, choose at least 250/500/100

If you're leasing or financing your car, you must get coverage of 100/300/100 or higher.

Collision and comprehensive

Collision coverage pays for damage to your car after an accident that you cause. Comprehensive insurance pays to replace stolen cars and broken glass and for damages from vandalism, flooding, hail, fire and animal strikes. These optional coverages are usually not budget-busters. Minnesota drivers pay, on average, $223 a year for collision and $180 annually for comprehensive. 

If your car is:

  • less than 10 years old, you should strongly consider buying collision and comprehensive.
  • more than 10 years old, only buy collision and comprehensive if your car is worth $3,000 or more, if you couldn’t afford to replace your car if it’s wrecked, or if you just want more protection on your policy.

If you buy comp and collision, check our guide to choosing a deductible amount.

Uninsured/underinsured motorist

These coverages are required in Minnesota, at a minimum of $25,000 per person ($50,000 per accident) but really should match the liability limits you choose. Uninsured motorist coverage and underinsured motorist coverage pays for damages if you’re hit by a driver with no insurance or a driver with coverage that’s insufficient to pay for your repairs and medical expenses.

Medical coverage (MedPay)

Medical payments coverage can help pay for the medical or funeral expenses of covered drivers and passengers after an accident, regardless of fault, starting at $5,000 and up to $25,000. In most states, including Minnesota, it's an optional addition to your car insurance policy. Because you are required to have PIP in Minnesota, you likely don't need MedPay. That's because PIP provides coverage equal to -- and beyond -- MedPay, which does the following:

  • Covers you and your passengers’ medical expenses
  • Pays for expenses after health insurance limits are exceeded
  • Offers additional protection to insured drivers who are hit by a car while walking or biking

If you and your passengers:

  • Don’t have health insurance, or have a plan that doesn’t cover car accidents or has low limits, we recommend that you add medical coverage of at least $5,000 to your car insurance policy.

Gap insurance

If you don’t own your car outright and have an accident, gap insurance pays the difference between the cash value of your car and the current outstanding balance on your loan or lease.

  • If you’re financing your car, your car is less than one year old and you’ve put less than 20 percent down on it, you should buy gap insurance. If not, you don’t need gap insurance.
  • If you’re leasing your car, it’s a good idea to buy gap insurance if you aren’t already required to in your lease agreement.
  • If you own your car outright, you don’t need gap insurance.


Minnesota car insurance rates by company

Below you'll see average annual rates for Minnesota, ranked cheapest to most expensive, for three coverage levels:

  • State minimum liability requirements
  • Liability limits of $50,000 per person/$100,000 per accident and $50,000 property damage
  • Liability of $100,000 per person/$300,000 per accident and $100,000 property damage, with comprehensive and collision at $500 deductible
CompanyState minimum
State Farm$504
State Farm$551
State Farm$1,190

To find rates by company and ZIP code for Minneapolis, visit our Minneapolis car insurance page.

Best car insurance companies in Minnesota

Scores are based on Insure.com’s “Best Insurance Companies” customer review survey of 3,700 customers. Companies not in the top 10 of market share do not qualify. All scores are out of 100.

Best customer service:

1.    USAA – 100

2.    State Farm – 93.7

3.    Nationwide – 93.7

3.    American Family – 92.3

Best claims service:

1.     Progressive – 98.6

2.     Liberty Mutual – 91.9

3.     USAA – 89.9

Best value for the price:

1.     USAA -- 99

2.     Geico – 97.4

3.     State Farm -- 91

Largest car insurance companies by market share in Minnesota

RankCompany NameDirect premiums writtenMarket share %Overall Customer Review Ranking
1State Farm806,99724.89%90.4
3American Family359,35111.08%89.2
6Liberty Mutual117,7643.63%86.5

*Source: A.M. Best market share rankings are based on direct premiums written in 2015.

Customer review rankings based on Insure.com's 2016 "Best Insurance Companies" survey of 3,700 customers. Scores are out of 100.

Minnesota car insurance laws

Like ice fishing? If you regularly drive onto one of Minnesota's 11,842 lakes while ice-fishing, you'll want comprehensive insurance … just in case. Collision coverage won't pay if you fall through.

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.


To drive legally in Minnesota, you must have liability insurance with at least limits of:

30 / 60 / 10

Bodily injury liability limits of $30,000 per person for those you injure in an accident ($60,000 per accident)  and property damage liability of $10,000.

Minnesota also requires drivers to buy uninsured and underinsured motorist coverage, both for bodily injury and property damage, with limits of $25,000 per person ($50,000 per accident).

Minnesota requires a minimum of $40,000 in personail injury protection; $20,000 of that amount is allowed for medical expenses, and $20,000 may be used for lost wages or other nonmedical expenses.

Click here for an explanation of liability requirements numbers

HOW MUCH IS CAR INSURANCE IN MINNESOTA? The average car insurance rate in Minnesota is:
$1,187 per year
37th most expensive state in the U.S.
"No-Fault" Insurance Law
Under a no-fault system, which is the case in Minnesota, when you have an accident, your auto insurance provider automatically pays you for certain damages, regardless of fault, up to a specified limit.
In our independent study of the best and worst states for driving, Minnesota was the
52% percent of roads are in poor/mediocre condition
10.8% of the drivers on the roads are uninsured
6.6 % traffic-related deaths per 100,000 population
2.65% of the average annual median household income is spent on car insurance
47 hours of commuter delay per year 

Full report: Best and worst states for driving