Do you live in the great state of Minnesota and are in search of cheap auto insurance? Even though auto insurance is both a requirement and a necessity, there is no reason to overpay. You definitely don’t want to be caught without it in the North Star State. Therefore it is imperative that you start your search for the best and cheapest auto insurance that you can find for the vehicle you own.
Cheap Car Insurance in Minnesota
For those living in Minnesota, the average auto insurance rate for the state is around $212 less than the national annual average of $1,470. This may still seem high to some (check out the most expensive states and cities for car insurance if you want to compare). However, this is the average rate and there are definitely lower ones out there.
In order to find the cheapest company possible, you can research your possibilities online with each individual company. Or, find a site that compares multiple companies at once. You can also call and speak to a representative if you are more comfortable going that route.
Before you start the search process, be aware that insurance companies take several factors into consideration when determining your individualized auto insurance rate. You can essentially take ten people with the exact same vehicle and end up with ten different rate quotes.
Let’s take a look at some of those factors.
What Insurance Rates Depend On
Believe it or not, extensive research has been conducted in order to come up with the various deciding factors that auto insurance rates are dependent upon. Many may be in your favor, but unfortunately, some may not. However, just by having knowledge of these factors, you may be able to figure out how to get the cheapest insurance you can possibly obtain.
- Age: The younger the driver, the riskier. Those aren’t judgments— those are overall facts. The average cost difference between a teen driver and a driver in their 50’s is over $1,000 for a 6-month premium. The same goes for older drivers.
- Driving History: This factor is pretty common sense. If you receive multiple tickets and are accident-prone, you are a huge risk to insurance companies, so they are going to charge you more upfront.
- Credit Score: Why would this matter? You aren’t buying a car, just driving one. According to the Federal Trade Commission, drivers with poor credit file more claims than those with good credit.
- Years of Driving Experience: To insurance companies, you are less risky the more driving experience you have. Plain and simple.
- Location: Certain states require specific types of coverage, which can, in turn, affect the cost. In addition, your zip code plays a fairly important role in determining your premium in that bigger cities often are higher than towns and rural areas. Where you physically park your car makes a difference as well. Parking in a single-home garage is less risky than parking in an actual parking garage, outside, or on the street.
- Gender: Statistics show that male drivers exhibit more risky driving behaviors than females. There usually isn’t too big of a jump for being a male, but this is still a factor.
- Insurance History: If you are fickle about which insurance company you want to stay with or are the type of insurer who often allows your policy to lapse, the next auto insurance company will most likely frown on your inconsistent behavior. They want someone who will pay on time and stick with them.
- Annual Mileage: This is a factor because the more miles you travel per year, the more you are on the road and at risk for something happening. The difference typically isn’t huge though and varies state by state.
- Marital Status: Really? Well, kind of. The monetary difference actually isn’t significant. But you do get a little perk for being married.
- Claims History: This is a big one and should be fairly obvious. The more claims you file, the insurance company is going to view you in one of two ways: risky or suspicious.
- Coverage Level: Undoubtedly, the more coverage you have, the more money you pay.
- Additional Perks/Discounts Offered: Rates also depend on company-specific perks and discounts that they may offer. By asking the insurance company what they have, you could save quite a penny.
Now that you know about the factors insurance companies review in order to get you a rate quote, let’s look at the special factors in the state of MN that can either cost you more money or save you money.
Required Coverage in Minnesota
Before we find cheap auto insurance Minnesota, it’s helpful to know what is required. Every state has a specific minimum required auto insurance coverage that each driver must obtain. The minimum legal requirements for MN are as follows:
- $30,000 bodily injury per person;
- $60,000 bodily injury per accident;
- $10,000 for property damage;
- $25,000/$50,000 uninsured motorist bodily injury
- Personal Injury Protection (PIP) $40,000 bodily injury per person/per accident
Uninsured Motorist coverage is required in Minnesota, which will help in a case where the at-fault driver in an accident has no coverage.
Since Minnesota is a no-fault state, Personal Injury Protection is required and covers your personal bodily injury regardless of who is at fault. PIP also covers lost wages, medical expenses, childcare costs, among other things.
These are the minimum coverages, and each driver has the ability to increase their coverage based on their own individual needs. Although, if you take out a loan to purchase your vehicle, your lender may require additional coverage.
If you are interested in adding coverage, these are some of the options available:
- Underinsured Motorist Coverage
- Medical Payments
- Rental Car Reimbursement
- Transportation Expense Coverage
- Towing and Labor Coverage
Are You an At-Risk Driver in Minnesota and Still Need Coverage?
Thankfully, Minnesota still offers insurance to those who have been deemed too risky. Fortunately, this helps when finding cheap auto insurance Minnesota. When an individual has been seeking auto insurance but companies are turning him or her down, the individual may purchase insurance through the Minnesota Auto Insurance Plan.
According to AIPSO, “Applicants must declare and certify that they have tried and failed to obtain automobile insurance in Minnesota within the preceding 60 days and have been unable to obtain such insurance at rates not exceeding those applicable under the Plan.”
Realize that going through this plan will not get you the cheapest rates, but it will keep you legal on the road. The best plan you can have is to work on cleaning up your driving record and gaining more experience on the road.
Largest Insurance Providers in Minnesota
The five largest insurance providers in MN are Allstate, Progressive, Farmers, American Family, and State Farm. By largest, they hold the most policies within the state.
But does larger mean cheaper? Some may say so, but let’s look at the facts.
The following are the 12-month policy averages:
Cheapest Auto Insurance in Minnesota
The following are considered the top five most affordable insurance companies in MN:
- Farm Bureau Mutual
- Western National
- The Hartford
You can compare these rates to those above. Finding cheap auto insurance in Minnesota isn’t difficult, but prices vary. There is quite a significant difference in price between the cheapest of the largest companies (State Farm) and the cheapest of the cheapest company (Travelers).
Discounts Offered by Each of the Cheapest Companies in Minnesota
- Travelers: multi-policy, multi-vehicle, homeownership, safe drivers, continuous insurance, hybrid/electric vehicle discount, new car, EFT/pay in full, early quote, good student, student away at school, and driver training discount
- USAA: safe driver, defensive driving, driver training, good student, multi-vehicle, vehicle storage, annual mileage, family discount, length of membership, and military discount
- Farmers Bureau Mutual: multi-policy, safe driver, claim-free, safe young driver, good student, multi-vehicle, and continuous insurance
- Western National: anti-theft device, company car, customer loyalty, defensive driving, good student, multi-policy, multi-vehicle, and young drivers/families discount
- The Hartford: anti-theft device, airbags, vehicle fuel type, driver training, good student, defensive driving course, multi-policy, and pay in full discount
Price Difference from Company to Company
Insurance rates can vary from company to company within the same state, even sometimes very dramatically. Why is this? There are a few reasons:
- The cost of discounts: Certain companies offer more discounts than others; some people are aware of these and many are not unless they are told or they ask. It would be beneficial to compare a few companies and ask for a complete list of the discounts each offer. Be sure to update your demographic information if anything has changed (marital status & location) as well as any other circumstance that may get you a discount–forgetting to do so can cost you in the long run.
- Choosing a company that uses credit scoring: This factor could either help or hurt your rate. If you have excellent credit, you will want to seek out an insurance company that includes credit scoring to determine the premium. However, if yours is sub-par, then you may want to go elsewhere.
- Available perks: Everyone loves a good perk, but it may cost you to get them. Many auto insurance companies have “free” built-in options such as roadside assistance or bodily injury coverage for pets. However, you may technically be paying for this in your premium.
- Ability to combine policies to cut costs: Certain auto insurance companies offer homeowners or renters policies among other things. It is cheaper when you receive coverage for multiple things together. This is better than separately covering them using different insurance companies or separate policies.
- Claim experiences and rate increases: If an auto insurance company is obtaining too many claims and are not charging enough premium, they will typically raise their overall rates to cover those costs.
Cheap Car Insurance Minnesota
By living in Minnesota, you have several options for insurance, even if you are a high risk to insurance companies. After having more knowledge about the various factors that may affect your insurance rates, you will hopefully have a better understanding of what to expect. You’ve seen the difference in price between the largest companies in Minnesota and the top five that are considered the cheapest.
Fortunately, there are also discounts you can obtain from those companies. Once you put in some leg work, you should be able to find a cheap and effective insurance policy that is just right for you. And if you’re interested in more auto insurance information, visit our car insurance guides and resources page to learn more.
- 1 Cheap Car Insurance in Minnesota
- 2 What Insurance Rates Depend On
- 3 Required Coverage in Minnesota
- 4 Are You an At-Risk Driver in Minnesota and Still Need Coverage?
- 5 Largest Insurance Providers in Minnesota
- 6 Cheapest Auto Insurance in Minnesota
- 7 Discounts Offered by Each of the Cheapest Companies in Minnesota
- 8 Price Difference from Company to Company
- 9 Cheap Car Insurance Minnesota