Updated on 06.20.16

Car Insurance in Minnesota

Kevin Oliver

I found over $1,500 in savings in 30 minutes.

I was on a mission. A mission to find out if Minnesotans can insure their car without having to take out a second mortgage. My mission was successful; I found that with the will to shop and a drive to succeed, it’s possible to save more than you can imagine.

My goal was to find the most economic coverage. Covering my bases, I got quotes from 5 top providers for the state’s required minimum coverage. In just 30 minutes of scouring the web, I found a flabbergasting $1,546 in savings. The most affordable quote I received was State Farm at $730, coming in well under the statewide average of $1,356. On the far opposite side of the spectrum was Bristol West, a Farmers insurance affiliate who quoted me for $2,276. I nearly did a double-take.

Recall with me, the famous words spoken by nearly every mother, “You are special in every way”. Well she was right — you most certainly are — and the insurance industry wholeheartedly agrees. Every company will view your your personal profile in a different light, and produce quotes accordingly. Everything, right down to your address and your job, is a unique identifier to a quote tool, and each change will influence your rate.

In my research, I was able to gather all five quotes via online tools. On average they took around 5 minutes to complete, a welcome sacrifice when potentially talking about saving hundreds – if not thousands — of dollars. If you do have to make a call to get a quote, you should set aside 15 or 20 minutes for the duration. But hey, sometimes the on-hold music is pretty good.

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Our Top 5 Picks for the Best Car Insurance in Minnesota

My choices weren’t pulled out of thin air as you may have believed. I choose these insures for good reason. First off, they each are standouts in their field as pillars of customer service. Secondly they each hold enough financial resources to weather the the worst economic hurricane.

Insurer My quote
State Farm $730
American Family $856
Allstate $924
Geico $1,002
Bristol West (Farmers affiliate) $2,276

Each one holds a high rank among a JD Power customer satisfaction study which evaluated the largest insurers in the north-central region. Their finances have been evaluated by leading insurance corporation monitor, A.M. Best. It has been my experience that an attentive agent can be the difference between a beneficial interaction and twitter-worthy rant against the customer service department. As far as financial solution, if you can’t trust your provider to care for you monetarily, then you shouldn’t even consider that company in the first place.

State Farm broke the ice with a competitive $730 annual premium. Bristol West is a highly rated local provider but the quote I received was beyond outrageous. Keep in mind, though, that your experience might be the complete opposite. That’s the joy of the insurance game — you never know where your best rates will come from. With that in mind, my recommendation would be to stick with an affordable company and invest your well-saved money into some better coverage.

Even If You’re Happy, It’s Best to Shop for a New Policy Every Couple of Years

There was a time, back in the good old days (aka the 90s), when the music rocked, the haircuts were bad, and car insurance was straight forward. Back then your prices and premiums were direct descendants of your risk profile — that is the collection of your personal and public data to calculate how risky you might be to insure. In today’s modern world, our barbers know better, the music industry doesn’t, and auto insurance realm has entered a whole new realm of convolution.

It starts with the controversial topic called price optimization. It’s a new tactic being rolled out across the nation by almost every major provider. The short version is this: Insurers dig into the vast amount of information strewn over the web. They cultivate your personal information regarding your purchasing habits, contractual investments, even your social media activity. This is then entered into infinitely complex algorithms which churn out “price elasticity” profiles. These profiles don’t measure your inclination for risk — rather, they measure your flexibility to pay. Thats right, they assume to know just how much you’re willing to pay them for services rendered. The less sensitive you are to price changes the more they will pull out of you.

In Minnesota, only property and casualty insurance has been protected from the practice of price optimization through Administrative Bulletin No 2015-3. When insuring your vehicle, your best bet is to keep being aware of the competition’s rates. Generally speaking, if an insurer see you shopping, they know that you won’t settle. The more you shop, the more you’ll save! Both now and in the long run.

Minnesota’s Minimum Coverage

The Bare Minimum

Minnesota has some pretty stringent requirement for drivers in the state, according to Minnesota’s DMV. Unlike many states, Minnesota operates under no-fault coverage. Your insurance will be paying your own medical bills in the event of an accident. No-fault states traditionally require two types of coverage: Liability and Personal Injury Protection.

Minnesota’s Liability requirements are mostly in line with other no-fault states; $30,000 for bodily injury per person, $60,000 for total bodily injury for all involved, and $10,000 for property damage, or a 30/60/10 plan. However Minnesota’s Personal Injury Protection requirements are a bit beyond most other comparable states: $20,000 of medical cost coverage and $20,000 of lost wages protection.

Finally, you’re required to purchase Uninsured/Underinsured Motorist coverage to cover damages caused by a driver who’s not insured up to the minimum requirements of the state. The requirements are $25,000 for injuries per person and $50,000 for total injuries in the accident.

The Best Car Insurance is Not Just Cheap Car Insurance

If you are inclined to save money by purchasing the most minimal amount of insurance required, there are a few things you should consider first. More than likely you will need to file a claim (be involved in an accident) approximately every 18 years. The average cost of injury inducing, but nonfatal accident is a terrifying $74,900.

In most cases, upgrading all the way to a 100/300/50 plan isn’t as much of a financial burden as you might expect. For example, my quote for a 30/60/10 plan with Allstate was $924. Increasing my coverage to 100/300/50 only made a difference of $121. Over the assumed 18 years, that’s an extra $2,178 to pay for the more appropriate coverage. All in all, it’s a worthwhile investment  when your looking at being entirely covered should worst come to worst. So rather than chance it on the highways with insufficient coverage, step up your game, it could make all the difference.

Get Quotes Now

Enter your zip code to compare rates from some of my top recommendations.

Beat the Average Premium: 9 Ways to Snag Cheap Car Insurance Rates

There are factors-galore when you are talking about premium influencers. Almost attribute about yourself plays a part in creating your dynamic risk profile. Lots of these things are out of your control, like your age and sex, but their are still ways to lower your premiums. Take look at The Simple Dollar’s Nine Ways to Lower Your Car Insurance, and give them a try.

Nine Ways to Lower Your Car Insurance Rates

Why are Minnesota’s rates so average?

What to Expect
Average Monthly Premiums
United States $139
Minnesota $126
Saint Paul $136
Minneapolis $135
Brooklyn Park $125
Saint Cloud $123
Coon Rapids $122
Source Quadrant

Minnesota’s rates are fairly consistent with the national average, yet they require much more varied types of coverage than other states. One possible explanation is that the cost of labor and parts to repair a vehicle in Minnesota is much more affordable than many other states. According to one study by CarMD, Minnesota was on the affordable end of both sides of the repair equation, coming in well below the national average for parts and labor cost.

This could be a major factor in balancing out the stringent insurance requirements to equal out to a fairly affordable state to insure your vehicle.

The Bottom Line

The Land of 10,000 Lakes shouldn’t be the Land of Outrageous Premiums. In just a few minutes of researching, I was able to find some pretty extreme savings for the state of Minnesota. If you’re in the market for an insurance policy, I recommend you take the time to shop around and compare all the competition. It may take some time, but I truly believe it’ll be worth your while.

Get Quotes Now

Enter your zip code to compare rates from some of my top recommendations.

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