The Best Car Insurance Companies in Minnesota (Expert Comparison)
Are you looking for the most affordable auto insurance in Minnesota? Or maybe you value customer service more and want a provider with top ratings in The North Star State?
If the answer is “yes,” then you’re in the right place.
We gathered car insurance quotes in Minnesota from 24 auto insurers, reviewed each company on several important parameters besides costs, such as customer service, optional coverages, and financial strength, and ranked the top performers.
However, we didn’t stop at grading the best players. We have also explained Minnesota auto insurance laws, minimum auto insurance requirements, and methods that can lower your premium by up to 60%.
The Best Car Insurance in Minnesota
Progressive — The Overall Winner
GEICO — The Best for Financial Strength
Westfield Insurance — The Best for Customer Service
Allstate — The Best for Optional Coverages
USAA — The Best for Military
The Overall Winner: Progressive
Progressive projects itself as a budget-friendly auto insurance provider. However, does it live up to its image in The North Star State? You bet! At $82 a month, it is the most affordable option by a few country miles. In short, look no further than Progressive insurance in Minnesota for a jaw-dropping bargain.
Of course, Progressive didn’t climb up to the top of our list with affordable rates alone. It also offers plenty of smart features to boot, such as the Name Your Price Tool. This tool shows all coverage options available at a particular price point, obviating the need to search for discounts, crunch numbers, and tweak coverages.
Apart from offering low-cost car insurance quotes in Minnesota and handy features, Progressive boasts a solid financial standing. It earned the second-highest rating of “A+” from A.M. Best. This rating speaks of its stability and ability to pay out claims.
Progressive also delivers a great bargain to drivers with less than pristine driving records. This makes it an appealing option for all those who are looking for cost-effective high-risk auto insurance in MN.
The only area in which Progressive doesn’t excel is in customer service. That said, its record is not shabby either. The insurer notched up an average score of three stars in J.D. Power 2019 regional study for the Minnesota region.
All in all, innovative features, solid financial health, and a price point that offers seriously good value for money make Progressive a winner all-round.
Choose Progressive if you want the cheapest car insurance in Minnesota.
Look elsewhere if you place a high value on customer service.
Best for Financial Stability: GEICO Insurance
GEICO, like Progressive, claims to be an affordable insurer, as reflected in its ads’ punchline “15 minutes could save you 15% or more on car insurance.”
Now that’s all good and dandy, but the main question is — how much truth is there in this claim?
Well, research shows GEICO makes good its promise in Minnesota. It is the second-most cost-friendly option in The North Star State and fully deserves a mention in our list of cheap car insurance companies in MN. That said, price is not the only aspect in which GEICO shines. It also does exceedingly well in financial strength and online tools departments.
A.M. Best awards GEICO the highest-possible rating of “A++.” In other words, you can count on it to settle auto claims quickly and smoothly.
Its online tools too are second to none. While its sleek and user-friendly website impresses you right off the bat, its smartphone app offers features that several MN auto insurance companies can’t match. For instance, you can even use its mobile app to locate the cheapest gas station near you or find answers to your questions.
However, GEICO’s record in customer service is mediocre. It could only notch three stars in J.D. Power’s regional study. But if that’s not a dealbreaker, GEICO is worth checking out.
Choose GEICO for its affordable car insurance quotes in Minnesota, strong financial health, and splendid online tools.
Look elsewhere if you want excellent customer service.
Best for Customer Service: Westfield Insurance
Price is not the only factor to consider when buying car insurance. You might want to look at customer service ratings as well. In the event that you make a claim, you’d want an insurer that eases your troubles, not makes them worse. If there’s one auto insurance MN provider from whom you can expect top-notch service, it’s Westfield Insurance. The insurer grabbed first place in the J.D. Power regional study, with a perfect score of five out of five. However, Westfield Insurance doesn’t offer a smartphone app, which may put tech-savvy users off. Nor does it have an online quoting tool, because of which we can’t comment on its rates. Nevertheless, drivers who place a high value on customer service should consider contacting Westfield Insurance agents for car insurance quotes in MN. Choose Westfield Insurance for its excellent customer service. Look elsewhere if you want to purchase car insurance online.
Best for Optional Coverages: Allstate
Allstate offers dependable car insurance products, but its high premiums can keep budget buyers away. Nevertheless, Allstate is excellent for drivers looking for a special type of optional coverage, like classic car insurance.
As far as financial strength is concerned, Allstate is well placed. A.M. Best gave it an “A+” rating, and it earned three out of five stars in the J.D. Power regional study as well.
However, its above-average premium rates mean we can’t universally recommend it for auto insurance in Minneapolis or elsewhere in The Gopher State. Still, for certain users, Allstate can be a good fit.
Choose Allstate for its superior selection of optional coverages.
Look elsewhere if you want the best customer service.
Best for Military: USAA
Some insurers excel in low-cost insurance, others in customers — but a select few shine in both. USAA, however, is unlike other players in the industry. It offers low-cost auto insurance that’s well-supported by top-class customer service. And if this wasn’t enough, its financial strength rating is as good as it gets. Considering these facts, you might be wondering why we haven’t ranked it as the best car insurance provider in MN, ahead of Progressive? Well, we’d have if it weren’t for one limitation — USAA products are only for the members of the US military and their families. If you’re eligible, don’t think twice before picking USAA, especially if you’re someone who likes to bundle services with a single provider. USAA offers a range of services besides car insurance, such as real estate, investment, and banking services. Pairing its multiple services can make auto insurance even more affordable. Choose USAA for its competitive rates, top-rated customer service, and solid financial strength. Look elsewhere if you don’t qualify for its coverage.
Cheapest Car Insurance in Minnesota (By City)
We obtained quotes from all major players with full coverage limits in the five biggest cities in The Gopher State. Our referenced driver was a 40-year-old male having a clean record.
The largest and most populous city in Minnesota, Minneapolis is famous for its parks, lakes, high-rise buildings, and exciting nightlife. The city is home to a number of cultural landmarks, including the Walker Art Center and Minneapolis Sculpture Garden. Auto insurance in Minneapolis is more expensive than in other Minnesota cities. That said, affordable car insurance is indeed available to Minneapolis drivers, the courtesy of Progressive. At $95 a month, it is significantly cheaper than all other providers. However, buying coverage from Progressive inevitably entails a trade-off in customer service. If that’s a concern, opt for Westfield Insurance or State Farm. Coming back to Progressive, it is also a great pick for high-risk drivers since it offers SR22 insurance in Minnesota at reasonable rates. Allstate, with its impressive selection of coverage options, might be a perfect choice for those who want a special kind of coverage.
The capital of Minnesota, Saint Paul is known for the Xcel Energy Center, the Science Museum of Minnesota, and its high-literacy rate. It is the second-most populous city of The North Star State and an important business hub of the Upper Midwest. Progressive emerges as the cheapest option in St. Paul for auto insurance. You may also want to include GEICO on your list since its rates are quite reasonable. It also is in the pink of health financially, earning the highest possible rating from A.M. Best. On the other hand, those who qualify for USAA should opt for it, as it offers the best of both worlds — affordable rates and exceptional customer service. Other noteworthy St. Paul auto insurance options include State Farm and American Family.
Founded in 1854, Rochester is the third-largest city in Minnesota. It is home to the world-famous Mayo Clinic and a major IBM facility. The city is distinguished by its warm hospitality, a culture of caring, and the spirit of innovation. Several publications, including Money, have consistently rated it as one of the top places to live in the country.
Those looking for cheap car insurance in Rochester, MN, should start their search with Progressive. At $63 a month, its rates are 40% lower than its nearest competitor — GEICO. Other names worth considering include AAA and State Farm.
Located on the north bank of the Minnesota River, Bloomington is the fifth-largest city in the state with a population of around 85,000. The city is best known for its lakes and Mall of America, which is the largest mall in the country with a capacity to accommodate 32 Boeing 747s.
If cost is the biggest factor for purchasing auto insurance in Bloomington, opt for Progressive. Other names worth considering are Liberty Mutual, Travelers, and State Farm. We also recommend grabbing a AAA auto insurance MN quote, since its members enjoy many perks, such as free emergency roadside assistance, travel vouchers, and discounts at more than 10,000 shops and restaurants across the US.
Duluth is a port city located in northeast Minnesota. It is the fourth largest city in the state and is known for the Great Lakes Aquarium, the Aerial Lift Bridge, and Minnesota Park. Bob Dylan, the American folk/rock superstar was born in Duluth.
Looking for the cheapest insurance in Duluth, MN? Then it’s hard to look past Progressive and GEICO. However, both scored averagely in customer service. If that’s a concern, we recommend adding Westfield Insurance and State Farm to the top of your list. On the other hand, if you want additional perks such as free emergency roadside assistance, check out AAA. Finally, those who need a special type of car insurance coverage should give Allstate a shot.
Minnesota Car Insurance Laws
Minnesota Car Insurance Laws
Have you been turned down coverage in the voluntary market?
Don’t worry, all is not lost. You can knock on the doors of Minnesota Automobile Insurance Plan (MN AIP) for help. Designed specifically for drivers who can’t get coverage the normal way, MN AIP ensures that the mandatory coverage is available to every Minnesota driver.
All auto insurance companies in Minnesota must take part in this plan and hand out coverage to high-risk drivers in proportion to their market share. For example, if Progressive writes 12% of all car insurance policies in Minnesota, it will get 12% of drivers who come through MN AIP.
The plan allows drivers with a poor record to drive legally, but there’s a tradeoff in premium rates. Therefore, it would be best if you turn to MN AIP only as a last resort.
State Minimum Auto Insurance MN Requirements
Every Minnesota driver must carry the following coverage:
$30,000/$60,000 Bodily Injury Liability Insurance — This coverage helps cover costs for medical expenses for injuries you caused to others. The per-person and per-accident limits are $30,000 and $60,000 respectively.
$10,000 Property Damage Liability Insurance — This coverage helps pay for damage you cause to someone else’s car or property. The maximum payout set under the mandatory auto insurance MN policy is $10,000 per accident.
$40,000 Personal Injury Protection (PIP) Insurance — It offers basic economic loss benefits. In the event of injury in a covered loss, PIP coverage will pay for your medical expenses and non-medical expenses, regardless of fault. The maximum payout for medical and non-medical expenses is set at $20,000 each.
$25,000/$50,000 Uninsured/Underinsured Motorist Insurance — It protects you in case you are involved in an accident where the other driver is uninsured or underinsured. The payout is capped at $25,000 per person and $50,000 per accident if two or more people are injured.
MN No-Fault Auto Insurance Laws
Minnesota is a no-fault state. In the event of a car accident, each driver receives compensation for their medical expenses and other out-of-pocket losses from their own auto insurance coverage — that is, through PIP coverage — up to policy limits, irrespective of who was at fault. Mind you, PIP coverage will not compensate for non-monetary damages, such as pain and suffering, caused by the accident. However, MN auto insurance laws allow you to sue the at-fault driver in certain situations. Which are these conditions? When can you step outside the no-fault system and file a claim against the negligent driver who caused the accident? You can file a claim if you have incurred medical expenses of over $4,000; suffered a permanent injury, disfigurement, or scarring; or suffered 60 days of disability or more.
SR22 Insurance in Minnesota
After a serious violation, you may require an SR-22 form to reinstate or maintain your right to drive legally.
It is the job of your insurer to file the form with the local Minnesota DMV. The SR-22 form basically serves as a proof of your having the state’s mandated coverage. For this reason, it is often referred to as a certificate of financial responsibility.
So in which situations would you need an SR-22 form?
As per auto insurance MN guidelines, you may have file SR22 if you:
- have gotten a DUI conviction;
- were caught driving without insurance or license;
- caused an accident but didn’t have the mandatory coverage;
- have received several tickets within a short period of time.
Typically, you will need to maintain SR22 for three years. After that, you can buy regular insurance.
The fee for filing an SR22 is usually $15 to $25, but you’ll likely pay much higher premiums than before. Since not all auto insurance Minneapolis providers penalize high-risk drivers equally, shopping around for the lowest rates may help you save considerably on car insurance.
Price Optimization in Minnesota
Price optimization, broadly speaking, refers to the practice of adjusting premium rates based on factors not related to the insured’s risk. An example would be using data mining to find out the maximum amount a particular driver is likely to pay and then charge them that rate.
As you may guess, many consider this practice unethical — perhaps rightly so. But what about Minnesota car insurance companies? Do they use price optimization?
Minnesota is one of the 16 states that have come hard on this practice. In a bulletin issued in 2015, the Minnesota Department of Commerce categorically states that using price optimization is against Minnesota law. This basically means car insurance premium rates in The North Star State are calculated solely on the basis of risk — nothing more.
Ways to Lower Auto Insurance in Minnesota
Compare Car Insurance Quotes in Minnesota
Premium rates can vary by as much as a few hundred dollars among insurers for similar levels of coverage. For instance, our research shows that typically the rates of the most affordable provider in a state are less than half the price quoted by the most expensive one.
However, no provider is the cheapest everywhere. And the least expensive option for drivers with good credit or excellent driving record might not turn out to be the most cost-effective one for drivers with bad credit or spotty driving record.
Therefore, if your priority is to find the cheapest insurance in MN, get quotes from multiple providers. The whole process won’t take more than a couple of hours but can go a long way in ensuring that you get the best bang for your buck.
Check Car Insurance Reviews
Price is not the only factor to consider when buying car insurance. Also look at other factors, like financial strength ratings, customer satisfaction ratings, quality of online tools, and others.
So how can you glean all this information about top insurance companies in Minnesota?
Of course, this guide helps you do just that. But if you want to look at more options, check out our car insurance rankings.
We thoroughly researched as many as 24 insurers and ranked them on the basis of their performance on seven most relevant factors — cost, financial health, availability, customer service, optional coverages, online tools, and discounts.
In short, whatever your budget or requirements may be, we have several suitable options lined up for you.
See Who Provides the Highest Discounts
The easiest way to get the cheapest car insurance in Minnesota is by availing all the discounts you are entitled to.
Online quoting tools automatically apply various discounts available to you before listing the premium. However, if you’re getting a quote over the phone, don’t forget to ask your agent to share this information with you.
Some of the common discounts offered by the best car insurance companies in MN are as follows:
Bundle Discount — Pairing auto insurance with other insurance, such as home insurance, can help bring your premiums down.
Good Driving Discount — Insurers typically reward drivers who have maintained a good driving record for an extended period of time, say five or six years.
Multiple Vehicle Discount — If you insure two or more vehicles with the same company, you are bound to save.
Good Student Discount — College students are particularly in need of cheap car insurance in Minnesota, considering the rising cost of tuition fees. You can shave up to 20% off your policy if you have a GPA of 3.0 or higher.
Tracking Driving Habits — Do you believe yourself to be a good driver? Prove that to your insurer by participating in its usage-based auto insurance program and earn a handsome discount in return.
Frequently Asked Questions
1. How much is car insurance per month in Minnesota?
We gathered car insurance quotes in MN from multiple players, big and small, for a 40-year-old driver with a clean driving record. Our research shows the average monthly auto insurance premium in The North Star State is $180. That said, high-risk drivers and students will likely pay more for coverage.
2. Is Minnesota a PIP state?
Yes, it is. No-fault insurance is also called PIP (personal injury protection). This is a no-fault state and requires every driver to carry PIP coverage of at least $40,000 ($20,000 for medical expenses and another $20,000 for wage loss or replacement service).
3. What happens if you drive without insurance in Minnesota?
If you are caught driving without valid auto insurance in MN, you may have to cough up $200 to $1,000 in fine and even do some jail time (up to 90 days).
4. Does unpaid car insurance go on your credit?
A late car insurance payment doesn’t directly affect your credit score. However, if your policy lapses, you might have to cough up significantly more for coverage. To avoid this eventuality, pay premiums on time.
In case your current insurer has canceled your coverage because of non-payment of premium, shop around and compare multiple car insurance quotes Minnesota to find the best rate.
5. Who pays for car damage in a no-fault state?
Typically, a no-fault coverage doesn’t include property damage. If your car gets damaged in an accident, you will have to pay for repairs out of your own pocket, regardless of fault, unless your policy includes collision and/or comprehensive coverage.