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In the United States, according to Bankrate’s auto insurance report in 2024, the car insurance rate for full coverage rose by 26% 2024 compared to the previous year. Still, a few states, like Minnesota, saw lower rate hikes. The Average Cost Of Car Insurance In Minnesota remains slightly below the national average, making it a more affordable option for many drivers.
Due to slightly lower insurance rates than the national average, Minnesota offers favorable opportunities for obtaining affordable car insurance. In this discussion, we’ll explore the average car insurance rate by city, gender, the least expensive insurance companies, and the impact of credit score on premiums in the state, starting with the most budget-friendly premiums and options available.
Also Read: Can You Get Car Insurance For a Self-Employed or Gig Workers
Minnesota Car Insurance Rates By City
Minnesota car insurance rates vary significantly by city. On average, Young America offers the lowest monthly premium at $174, while Angora has the highest at $216. Cities like Maple Plain and Loretto have moderate rates, with premiums around $182 and $183 monthly. Larger cities such as Duluth and Virginia have slightly higher rates, averaging $184 and $202 monthly, respectively. Other cities, including Esko, Cloquet, and Aurora, have premiums ranging from $201 to $207 monthly.Â
The difference between the highest and lowest premiums is noticeable, reflecting how location impacts insurance rates. Factors like local accident rates and population density contribute to these variations. Comparing rates from different cities can help you find the best deal for your needs. It’s essential to consider these variations to ensure you’re getting the most affordable and comprehensive coverage possible.
| City | Avg. Annual Full Coverage Premium | Difference vs. State Avg |
| Young America | $2,264 | –13% |
| Loretto | $2,381 | –8% |
| Maple Plain | $2,368 | –8% |
| Duluth | $2,408 | –6% |
| Grand Meadow | $2,416 | –6% |
| Brownsville | $2,423 | –6% |
| Adolph | $2,527 | –2% |
| Norwood | $2,584 | 0.01 |
| Cloquet | $2,664 | 0.04 |
| Aurora | $2,692 | 0.05 |
| Schroeder | $2,771 | 0.08 |
| Knife River | $2,788 | 0.08 |
| Ely | $2,782 | 0.08 |
| Angora | $2,791 | 0.08 |
Average Car Insurance Costs By Age And Gender In Minnesota
Car insurance costs in Minnesota vary by age and gender. Young drivers, particularly teenagers, face the highest premiums. In Minnesota, 16-year-old males pay an average annual premium of $5,165 for full coverage, while females of the same age pay $4,802.
This difference reflects the higher risk insurers associate with young male drivers. As drivers age, their premiums generally decrease. By age 25, males pay around $2,939 annually, and females pay $2,787. This trend continues, with drivers in their 30s and 40s seeing even lower rates, around $2,490 for males and $2,467 for females.
Gender also influences car insurance costs, but the differences become less pronounced as drivers age. For example, at age 40, males and females pay nearly the same for full coverage, with males paying $2,380 and females $2,382 annually. The premiums remain similar for drivers in their 50s and 60s, with only slight variations. By age 60, males pay an average of $2,097, while females pay $2,124. These trends highlight how age and driving experience can significantly impact insurance rates, while gender differences tend to diminish over time.
| Coverage Type | Avg. Annual Premium | Avg. Monthly Premium |
| Full Coverage | $1,493 – $2,760 | $124 – $230 |
| Minimum Coverage | $535 – $786 | $45 – $65 |
| Age | Avg. Annual Full Coverage (U.S.) |
| 16 | $5,000 – $6,000+ |
| 25 | ~$2,900 |
| 40 | ~$2,100 |
| 60 | ~$2,000 |
Car Insurance Rates In Minnesota By Credit Score
In Minnesota, car insurance rates can vary depending on your credit score. Generally, drivers with higher credit scores tend to pay lower premiums, while those with lower scores may face higher rates. Insurance companies consider credit scores a factor when determining insurance premiums because they believe they reflect a person’s financial responsibility.
Drivers with excellent credit scores often qualify for the best rates, while those with poor credit scores may pay significantly more for coverage. Minnesota drivers need to monitor their credit scores and work on improving them to secure lower insurance rates.
| Credit Score | Avg. Annual Premium |
| Excellent | ~$1,350 |
| Good | ~$1,650 |
| Fair | ~$2,000 |
| Poor | ~$2,800 |
Cheapest Car Insurance Companies In Minnesota
The cheapest car insurance in Minnesota offers competitive rates through several companies. Auto-Owners, Allstate, Encompass, West Bend, and Western National are among the cheapest options available. These companies provide budget-friendly premiums without compromising on coverage. Whether you’re looking for minimum or full coverage, these insurers offer reasonable rates to help you save money on your car insurance expenses.
Minnesota drivers can compare quotes from these companies to find the best deal that fits their budget and coverage needs. Additionally, taking advantage of discounts and bundling options can further reduce insurance costs. Minnesota drivers can ensure reliable coverage without breaking the bank with these affordable options.
| Insurance Company | Avg. Annual Full Coverage |
| State Farm | ~$1,500 – $1,700 |
| Geico | ~$1,600 – $1,800 |
| Auto-Owners | ~$1,700 – $1,900 |
| American Family | ~$1,800 – $2,000 |
| Progressive | ~$1,900 – $2,200 |
Cost for Driving Record in Minnesota
Having a clean driving record is essential for maintaining affordable car insurance rates. However, any driving infractions, severe ones like accidents or DUIs, can significantly impact your premiums. Let’s understand how driving records proportionally reflect your car insurance rates.
At-fault Accident
Insurance companies view at-fault accidents as a significant risk factor. In Minnesota, your insurance premiums will increase substantially if you are involved in an at-fault accident. On average, drivers with an at-fault accident on their record pay around $3,409 annually for car insurance.
This is a 43% increase from the average premium for drivers with a clean record, which is $2,381 annually. Insurers consider drivers who have caused accidents more likely to file future claims, thus representing a higher risk.
Speeding Ticket
A speeding ticket can also lead to higher insurance costs. In Minnesota, getting a speeding ticket raises your annual car insurance premium to about $2,915. This represents a 22% increase from the average premium for a driver with a clean record. Speeding tickets indicate risky driving behavior to insurance companies, making you a higher-risk customer. As a result, insurers adjust your rates to reflect the increased likelihood of you being involved in an accident.
DUI
A DUI conviction has the most severe impact on your car insurance premiums. In Minnesota, a single DUI conviction can raise your insurance rates by an average of 110%, making your annual premium around $5,011. This dramatic increase is due to the serious nature of the offense and the high risk associated with drunk driving.
Besides the insurance cost, a DUI also brings significant state-mandated fines and penalties. Insurance companies see drivers with a DUI as extremely high-risk, which not only affects the cost but can also make it challenging to find coverage.
Also Read: Psychology Behind Car Insurance Pricing: What Insurers Don’t Always Tell You
How Much Is The Auto Insurance For Good And Poor Credit Scores in Minnesota
Auto insurance can be more expensive for Minnesota residents with poor credit scores. Individuals with poor credit may pay around $2,357 annually for car insurance, translating to a monthly premium of approximately $196. Poor credit scores, usually below 670, often lead to higher insurance rates due to the perceived higher risk for insurers.
On the other hand, those with good credit scores in Minnesota tend to enjoy lower insurance premiums. With a credit score typically ranging between 670 and 739, individuals may pay an average annual premium of about $1,016, with a monthly payment of approximately $85. Maintaining a good credit standing is essential for accessing more affordable car insurance rates, as insurers view individuals with good credit as lower risk and thus offer them better rates.
Conclusion
Minnesota drivers enjoy a unique advantage in wrapping up as they pay car insurance rates slightly below the national average. Traffic violations significantly increase premiums, which reflects the higher risk insurers associate with these infractions. By knowing the aspects of car insurance costs in Minnesota, drivers can confidently navigate their options for financial prudence and adequate roadway protection.
For those eager to explore their options further, Beem app provides a convenient platform to compare car insurance quotes and discover affordable rates tailored to individual needs. You can take the first step towards securing reliable coverage today with Beem.
FAQs on Average Cost of Car Insurance In Minnesota
What Is Full Coverage Car Insurance in Minnesota?
Full coverage car insurance in Minnesota typically includes liability coverage, which pays for damages and injuries you cause to others, as well as collision and comprehensive coverage for your vehicle. It offers broader protection but comes at a higher cost than minimum coverage.
How much car insurance do I need in Minnesota?
Minnesota requires drivers to have at least $30,000 in bodily injury liability coverage per person, $60,000 per accident, and $10,000 in property damage liability coverage. However, it’s advisable to consider higher coverage limits to ensure adequate accident protection.
What is the monthly insurance cost in Minnesota?
The monthly cost of car insurance in Minnesota varies depending on your age, driving record, credit score, and the coverage you choose. On average, drivers in Minnesota can expect to pay anywhere from $100 to $200 per month for car insurance. To find the most affordable rates, consider comparing quotes from different insurers, like Beem Car Insurance, which offers a convenient platform to explore your options and secure affordable coverage.
