Looking for Cheap Car Insurance in Minnesota?
Did you know that car insurance prices are generally higher in Minnesota than the US average? Most car insurance companies charge higher rates in Minnesota due to its no-fault status and minimum requirements.
For the best rates, you'll want to compare quotes from several major insurers - luckily, Carlay makes that easy. Not only will a tool like Carlay help you find the best rates, but it can also help you compare many insurers at once, so you know you're getting the best deal possible. No matter where you live—Minneapolis, Saint Paul, or anywhere else in the state—Carlay can help you save time and money.
As a licensed car insurance broker, Carlay walks you through the entire process: from gathering quotes to finalizing paperwork and canceling your old policy. This means you can sit back and enjoy the savings with very little effort on your part.
But we've got proof! Here are some quotes from Carlay customers:
How Much Does Car Insurance Cost in Minnesota?
The average annual cost of basic liability car insurance in Minnesota is $1,788. And the average annual cost of full coverage car insurance in Minnesota is $1,827.
Compared to the national average, basic liability car insurance costs $1,783 per year, and full coverage car insurance costs $2,485 per year.
What contributes to the insurance rates in Minnesota?
Here are a couple of the main reasons why insurance is expensive in Minnesota:
- No-fault status
Minnesota is a no-fault state. That means that when you're in a car accident, you claim with your own insurance carrier regardless of who's at fault.
- High minimum car insurance requirements
The best way to make sure you get quality coverage at a great price. The state is known for very high minimum car insurance requirements– which significantly increases the cost of even “minimal” auto insurance coverage.
In this table, you can see how Minnesota's insurance savings with Carlay compare to nationwide averages:
|All Coverage Before Carlay||All Coverage After Carlay||Minimum Coverage Before Carlay||Minimum Coverage After Carlay||Full Coverage Before Carlay||Full Coverage After Carlay|
|All Coverage Before Carlay||$2,162||$2,489|
|All Coverage After Carlay||$1,486||$1,671|
|Minimum Coverage Before Carlay||$1,816||$2,360|
|Minimum Coverage After Carlay||$1,117||$1,390|
|Full Coverage Before Carlay||$2,233||$2,761|
|Full Coverage After Carlay||$1,680||$1,963|
Top auto insurance providers in Minnesota
Minnesota drivers are lucky to choose from a large number of insurance providers, including industry leaders like State Farm, Progressive, and Farmers. However, choosing the right insurance company may not be easy.
The process gets tougher as different insurance providers use different formulas to set premiums. This means that, when comparing quotes from several different insurers for the same coverage, you will likely be quoted different rates.
Premiums for auto insurance vary based on a number of factors, including your age, driving record, and where you live. The type of car you drive is a major factor—insurers pay more to replace expensive cars, so they cost more to insure. If you drive an expensive car like an Audi A6, your insurance premium will likely always be higher than someone who drives a less-expensive economy car, for instance, a Mazda 3.
When you shop with Carlay, you get some of the best insurance rates in Minnesota:
What Car Insurance Do You Need in Minnesota?
To drive legally in Minnesota, you will need to buy at least the following auto insurance:
|Bodily injury liability||$30,000 per person / $60,000 per accident||Covers the costs associated with injuries you cause to others|
|Property damage liability||$10,000 per accident||Covers the costs associated with damage you cause to other people's vehicles or property|
|Personal injury protection||$40,000||Covers medical expenses, lost wages, and rehabilitation costs after an accident|
|Uninsured motorist coverage||$25,000 per person / $50,000 per accident||Reimburses you for your expenses from an accident caused by an uninsured driver|
If you don't have the mandatory minimum insurance, you could face serious penalties, including:
- Fine of up to $1,000
- Up to 90 days in jail
- Driver's license suspension
- Revocation of vehicle registration
- Financial liability in the event of an accident
As a rule, you should always have more insurance than the legal minimum. Here are some helpful coverages to consider:
|Collision insurance||Covers damages that are the result of a collision with a vehicle or stationary object|
|Comprehensive insurance||Covers damages that aren't the result of a collision, such as vandalism, theft, or a natural disaster|
|Rental reimbursement||Reimburses you for your rental car expenses while your car is being repaired after a claimable accident|
When you're ready to buy insurance, Carlay will stand by your side.
Carlay offers free car insurance quotes that are more accurate and tailored to your individual needs than if you were to get a quote from a traditional site. It's free to sign up for this service, and Carlay will find you amazing insurance deals from reputable companies like Nationwide and Travelers. Carlay customers save $879 per year, on average!
Now that you know what type of insurance you need let's look at the factors that influence its price.
How is Your Cost of Car Insurance Determined in Minnesota?
Insurance rates are often determined by characteristics such as your age, driving record, location, and vehicle.
- Cost to insure your car in Minnesota by age
Drivers who have more experience and drive safely usually get lower car insurance rates. Minnesota has many teen drivers who are overrepresented in traffic crashes because of driver inexperience, distractions, speeding, and other irresponsible behaviors. So, younger drivers will pay more for car insurance.
What young drivers in Minnesota need to know
Minnesota has a graduated system that allows young drivers to gradually increase their privileges and responsibilities on the road. The GDL is designed to ease inexperienced drivers into the driving environment with restrictions and a number of stages to successfully complete before graduating to a full license.
For the best chance of a favorable auto insurance rate, young drivers in Minnesota should take defensive driving courses and maintain a good academic average to qualify for a good student discount.
Don't let this discourage you! Your parents may have enjoyed lower rates than you do, but if you shop around and keep a clean driving record, you too can find good deals.
For drivers who have yet to compare car insurance rates, Carlay Insurance is the place to start. The following average rates were found by age:
|Age Group||Average Cost||Annual Savings with Carlay|
- Cost to insure your car in Minnesota with a poor driving record
Insurance companies consider many different factors when setting your insurance rates. The most important one is your driving record. Insurance companies can review your driving record to see if you have any accidents or traffic violations. If you have a clean record, you're more likely to receive low premiums on your insurance policy than someone with a history of speeding tickets or at-fault accidents who will have to pay higher Minnesota car insurance.
Luckily, Carlay is the easiest way to get lower car insurance rates, even if you have driving violations.
Here are some of the savings we've managed for customers with poor driving records:
|Driving Violation||Average Cost||Annual Savings with Carlay|
|Wrong Way/Wrong Lane||$3,576||$1,989|
|Leaving scene of an Accident/Hit and Run||$3,360||$1,776|
|Driving on Sus. License||$3,968||$1,651|
|Failure to Obey Traffic Sign||$4,055||$1,391|
- Cost to insure your car in Minnesota based on where you live
Minnesota has nearly five million registered vehicles and one of the highest numbers of licensed drivers per population in the country. And because driving conditions differ in different parts of the country, insurance companies take that into account when setting premiums. Rural drivers pay less for auto insurance than do urban drivers; the reason is that there are fewer accidents, thefts, and claims in rural areas.
If you live in a densely populated city, like Minneapolis with over 8,100 people per square mile, then your premiums will be higher than those of a resident of a smaller town. The fact that the state's population is largely rural means that rates across the board are quite reasonable.
See the top 10 cheapest cities for car insurance in Minnesota:
|City||Average Cost||Annual Savings with Carlay|
- Cost to insure your car in Minnesota based on the type of car you drive
In addition to your age, your driving record, and the value of your car, your insurance company will take into account how safe or unsafe the car you own is. Customers who drive a Chevrolet Impala—which is a kind of car popular in Minnesota—will benefit from the affordable rates at our agency.
Cheaper cars tend to come with lower insurance premiums because they are easier and cheaper to repair or replace after an accident. Also, driving less will lower your insurance costs since you'll have fewer accidents.
However, if you drive an expensive car like a Mercedes-AMG G63 or BMW X6, you can expect to pay higher monthly rates.
Here's how much you would pay to insure some popular makes and models if you added Carlay as one of your options:
How to Save Money On Car Insurance in Minnesota?
Getting car insurance can be crazy expensive. Even if you've already found affordable insurance, you might be able to save a little on your premiums if you look into these ways.
- Shop around for quotes
Drivers in Minnesota can save money by shopping around and comparing car insurance. Getting a car loan isn't rocket science, but it's definitely not as simple as a piece of cake. That's why Carlay would love to help you.
Carlay is the super app that helps you save time and money on your car expenses, including insurance. You'll need to answer a few questions about your driving and coverage needs; then, Carlay will get to work finding you the best deals on policies that meet your needs.
When you're ready to make the switch, Carlay handles all the paperwork and phone calls for you so that you get all the savings without any of the usual hassles.
- Look for discounts
If you're a safe and responsible driver in Minnesota, you might be able to save money by comparing insurance quotes with us. Here are some of the most popular discounts offered to the local drivers:
|Discount||Who is eligible?|
|Good driver discounts||Good driver discounts are for Texas drivers who have had a valid driver's license for the past three consecutive years, have no more than one point on their driving record, and have no serious driving-related convictions. This discount is mandated by state law and saves drivers 20% on their car insurance premium.|
|Bundling discounts||Insuring multiple products (like auto and home) with the same company is an easy way to get a bundling discount, which can result in savings of around 18%.|
|Defensive driver discounts||Most insurance companies offer discounts to drivers who complete a state-approved defensive driving course. This can be particularly helpful for young drivers who typically face high premiums.|
|Payment and billing discounts||Policyholders who pay their premium in full, set up automatic payments, or sign up for paperless billing may be eligible for a discount of up to 25% on their annual premium.|
|Good student discounts||Good student discounts can help reduce insurance premiums for young drivers, who typically have sky-high rates until they turn 25. Full-time students who maintain a B average may qualify for savings up to 25% through their insurer.|
|Continuous coverage discounts||Many insurance companies offer discounted rates—often 5% to 25%—to policyholders who have been continuously insured for 6 months or more.|
- Increase your deductible
Your deductible is the portion of a claim that you must pay before your insurance company starts to cover costs. Moving your deductible up or down can affect how much you pay in premiums, but it's not always the right choice. Be sure that you can afford the total deductible for each time you file a claim; otherwise, you could find yourself in a tight financial spot.
Registering Your Car in Minnesota
To register a car in Minnesota, you will need to bring the following documents to the DMV:
- Valid driver's license or ID card
- Proof of insurance
- Proof of sales tax payment
- Car title or signed lease agreement
You must renew your vehicle registration in Minnesota annually. You can do this in person, by mail, or online.