Best Cheap Car Insurance in Minneapolis
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The average cost of car insurance in Minneapolis, Minnesota, is $1,980 per year for full coverage, or $165 per month. The average work commute in the city is under 25 minutes and most drivers drive alone. Although a shocking statistic, Minnesota exceeded 300 traffic fatalities in 2021 by the end of August, the earliest date that Minnesota has ever reached the unfortunate benchmark since 2007. While not every accident is likely to end up as severe, knowing the best car insurance companies in Minneapolis that have affordable rates can be a huge help in staying financially protected.
In reviewing the best car insurance in Minneapolis, Bankrate’s insurance editorial team assessed the cheapest car insurance companies in the area by average premium and the coverage and discounts available. The cheapest car insurance company in Minneapolis is State Farm, according to Bankrate’s 2021 study of quoted annual premiums.
Best cheap car insurance companies in Minneapolis
Bankrate arrived at its choices for the cheapest car insurance in Minneapolis, Minnesota, by analyzing average annual auto insurance premiums from Quadrant Information Services. We looked carefully at a range of available coverage options and discounts, AM Best financial strength ratings and J.D. Power customer satisfaction scores. Industry-trusted third-party ratings help provide a more well-rounded view of how a provider performs across several important aspects, such as customer service and claim payout capability. By compiling this information, we were able to assign each company a Bankrate Score — scored on a 5.0 scale — which reflects their overall performance amongst these categories and price.
Our review determined that State Farm, American Family, AAA, USAA and Auto-Owners provide some of the cheapest rates for car insurance in Minneapolis:
|Insurance company||Bankrate Score||J.D. Power score (Central region)||Average annual premium for full coverage||Average annual premium for minimum coverage|
*Not officially ranked with J.D. Power due to eligibility restrictions
State Farm is a well established and respected insurer that distinguishes itself with an easy-to-use website. Its digital presence provides a host of readily accessible information to help users build their own policy packages that meet their needs. As the cheapest full coverage provider on our list, State Farm could be a great choice for those looking for reliable coverage at affordable rates. However, its minimum coverage policies average as the second most expensive on our list, making it a less viable option for Minneapolis drivers seeking the lowest coverage allowed. State Farm offers a number of valuable options, including specialized programs designed exclusively for teen drivers and coverage for antique car collectors.
Learn more: State Farm Insurance review
American Family may be the best insurer for drivers looking to switch carriers, as it promotes that policyholders who make the switch could qualify for two stackable discounts. There are discount options for customer loyalty, early signing and purchasing multiple policy types. However, those comparing the cheapest car insurance companies based on customer satisfaction may want to consider additional providers, as AmFam scores a couple of points below industry average for the Central region.
Learn more: American Family Insurance review
With the cheapest average minimum coverage policy on our list, AAA may be the best option for drivers seeking liability-only coverage. With it, Minneapolis drivers could save more than $400 per year. While there aren’t any early signing discounts, there are several multi-policy discounts, including auto and home bundle savings. Additionally, there are savings for good driving, supplying up-to-date odometer readings and maintaining your AAA policy for at least one full year.
Learn more: AAA Insurance review
USAA is only available to its members — active and former military and their families. Because of its customer base, the company may be the best option for military families seeking cheap car insurance companies. There are even military-centric savings opportunities, like a discount for storing a vehicle on base. J.D. Power does not rank USAA in its customer satisfaction surveys, but it does score the company. With a score of 897 — 41 points higher than the ranked leader in the Central region — USAA’s customers clearly have a high level of satisfaction with the company’s service. USAA offers an annual minimum coverage premium that is below the average annual premium in Minneapolis of $828.
Learn more: USAA Insurance review
Auto-Owners’ score of 845 ranks the carrier above average in the Central region. It also has the second-highest Bankrate Score on our list, meaning it could be the best option for all-around performance. Auto-Owners offers car insurance rates below the average premiums in Minneapolis for both minimum and full coverage. The company is particularly strong in its ability to tailor coverage to meet the needs of its customers, such as its Plus package, which offers more than 10 additional coverage options.
Learn more: Auto-Owners Insurance review
How to get and keep the cheapest car insurance in Minneapolis
Finding cheap quotes is an important part of narrowing down your cheapest car insurance options, but there are multiple factors that go into helping you secure the lowest price. Considering the following tips can help you nail down the cheapest company for you.
- Note your coverage needs. Comparing average quotes is just the start. When comparing providers side-by-side, it helps to have an apple-to-apples comparison for the same amounts and types of coverage, including options like roadside assistance or full glass repair. Each provider will quote a different amount, so knowing the coverage you need can help make your cheapest option clearer.
- Reduce your risk. Carriers determine rates based on insurable risk, where the less risk you pose as an insured, the cheaper your rates. Remaining accident-free, driving at posted speed limits and avoiding unnecessary claims can all go a long way in helping you achieve the lowest rate.
Frequently asked questions
What is the best car insurance company?
There is no one-size-fits-all insurer that provides the best car insurance coverage for everyone. Certain coverage options and discounts offered by one company may not match those offered by others. For this reason, many drivers decide to research multiple companies and obtain several quotes for comparison.
How much car insurance do I need in Minneapolis?
To determine how much car insurance you need, start by looking at the current value of all of your assets. If you are faced with a lawsuit resulting from a serious accident where you are at fault, you could put your assets and financial security at greater risk without proper coverage. Working with your agent can help you set your car insurance limits accordingly.
How much does car insurance in Minneapolis cost?
According to the most up-to-date premium data from Quadrant Information Services, the average cost of car insurance in Minneapolis is $1,980 per year for a full coverage policy and $828 per year for a minimum coverage policy. Your individual rate may be more or less than the city average based on personal factors such as your vehicle make and model and driving record.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our sample drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.
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