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Best 4 Car Insurance Companies in Minnesota
Our Top 4 Picks for the Best Cheap Car Insurance in Minnesota
Each of these companies holds a high rank in the J.D. Power customer satisfaction study that evaluated the largest insurers in the north-central U.S. Their financial strength has been confirmed by leading global credit-rating agency A.M. Best.
Geico came in with a competitive $840 annual premium quote. American Family is a highly rated local provider. Keep in mind, though, that every consumer’s experience is different. You never know which company will have the best policy and price for your circumstances. With that in mind, stick with an affordable company and invest your money in some better auto coverage.
Minnesota’s Minimum Coverage Requirements for 2019
Minnesota has some stringent requirements for drivers in the state, according to Minnesota’s DMV. Unlike many states, Minnesota operates under no-fault coverage. Your insurance will pay your 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. That means $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, at $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 an uninsured driver. The requirements are $25,000 for injuries per person and $50,000 for total injuries in the accident.
Take the Time to Shop Around Every Few Years
There was a time when car insurance prices and premiums were direct reflections of your risk profile — the collection of your personal and public data to calculate how risky you might be to insure. But auto insurance has entered a whole new realm. It starts with a controversial practice known as “price optimization.” It’s a tactic being used across the nation by almost every major insurer. It works like this: Insurers dig into a vast amount of personal information strewn over the web regarding your purchasing habits, contractual investments, even your social media activity. Complex algorithms are used to analyze the data and churn out “price elasticity” profiles. These profiles measure your flexibility to pay. They assume to know just how much you’re willing to pay them for insurance. The less sensitive you are to price changes, the more they will pull out of you.
In Minnesota, only property and casualty insurance are protected from the practice of price optimization, through Administrative Bulletin No 2015-3. When insuring your vehicle, your best bet is to stay aware of the competition’s rates. Generally speaking, if an insurer sees you shopping, it knows that you won’t settle. The more you shop, the more you’ll save, both now and in the long run.
You also need to be aware of other factors that affect your premium cost. For example, if you have a new driver on your policy, whether it’s a teenager or just someone who’s never driven before, it could significantly increase your insurance cost. This is because new drivers, in general, don’t have a driving track record, so insurance companies figure they will have more accidents and raise your insurance rates. Luckily, car insurance will decrease gradually as you age, and when you hit age 25, the rates are significantly lower. You can also apply for a student discount if you have good grades.
Another factor that might negatively affect your insurance rate is your credit score. It’s no secret that insurance companies look at your overall credit score to help determine your rate. If your score is under 620, that is likely a red flag for your insurance company. If you’ve ever filed for bankruptcy, that is a warning flag that can haunt you for up to 10 years. You can help yourself overcome these risk indicators by paying your bills on time and keeping your credit card balances low to raise your credit score.
You can keep your insurance rates down by being a good driver. Good drivers are often given a discount for avoiding collisions and accidents that result in large insurance payouts. When insurance companies don’t have to make those payouts, they pass that savings on to customers with clean driving records. If you keep your driving safe and on track, you could see some real price reductions on your policy. If you know that you’re a good driver, you should shop around for lower rates at different insurance companies.