Minnesota Car Insurance
Last Updated on May 1, 2020
Drivers in Minnesota can pay competitive prices for car insurance – especially if they take the time to shop around. If you take a few minutes to shop around for car insurance today, then you might pay just a few hundred dollars per month for a minimum liability plan – or slightly more for a comprehensive plan.
We’ve helped thousands of drivers in Minnesota find great rates on car insurance. Our analysis shows that certain Minnesota car insurance companies tend to be cheaper than others. Those companies include West Bend Mutual, GEICO, Western National, American Family, State Farm, Allied, Allstate, and Progressive. Farm Bureau Mutual also seems to offer particularly competitive prices for drivers in Minnesota, although you need to be a member to qualify.
Car Insurance in Minnesota Cities Can Be More Expensive Than in Rural Areas
If you recently moved to a major metropolitan area in Minnesota – like the Twin Cities – then you might notice a significant jump in car insurance prices. It’s true: drivers in big cities are more likely to make a claim than drivers in smaller cities and rural areas. There’s more traffic, higher population density, and a higher rate of incidents. In most cases, that means you’ll notice a significant rise in car insurance prices.
If you’ve moved to the Twin Cities from, say, Roseau, then you might see your car insurance prices rise 20% to 50%. Fortunately, moving to a big city is also a good excuse to compare car insurance prices. There might be more car insurance competition in Minneapolis and Saint Paul than in Bemidji or Duluth.
Minnesota Automobile Insurance Plan
Car insurance is required for all drivers in Minnesota. However, car insurance companies also have the right to deny coverage to a driver who is considered to be a high risk.
If you’re a high risk driver, then you might struggle to find affordable car insurance in Minnesota. In that case, we recommend checking with the Minnesota Automobile Insurance Plan, or MNAIP, a government program that guarantees access to car insurance for high-risk drivers.
Driving a car is a privilege in some states – like a region with good public transit. In a larger state like Minnesota, however, public transit isn’t always an option – particularly for those living in rural communities. If you’re unable to find coverage from a traditional car insurance company, but you still want to legally drive, then you can depend on the Minnesota Automobile Insurance Plan or MNAIP to help you out.
Car Insurance for Teen Drivers in Minnesota
Minnesota, like most states, has a graduated licensing program for teen drivers. For the first six months of your driver’s license, for example, you can only drive while accompanied by a licensed driver 25 or older. You’re also prohibited from driving from midnight to 5 am. Plus, you can only drive to and from work or school. After you have your driver’s license for six months, all restrictions are lifted.
Teen drivers in Minnesota can get an instructional permit at age 15 after completing 30 hours of classroom instruction and passing a test. At age 16, you can get a provisional license.
Typically, car insurance companies don’t require you to upgrade your car insurance for a teen driver with a learner’s permit. You’re only required to upgrade your car insurance when your teen driver gets a provisional license. When you add a teen driver to your insurance policy, however, you can expect car insurance premiums in Minnesota to increase substantially.
Car Insurance Requirements In MN
All Minnesota drivers are legally required to carry three types of auto insurance:
- Standard liability with a minimum coverage of 30/60/10 (see the chart below)
- Uninsured and underinsured motorist bodily injury with a minimum of 25/50 (see the chart below)
- Personal injury protection, or PIP with a minimum of $40,000.
Minnesota is considered to be a “No-Fault State”. This simply means that no matter who is at fault in an accident, each party involved is responsible for their own damages. This is where your PIP comes in, to help you (and any passengers in your vehicle) pay any injury-related expenses, regardless of whom was at fault in the accident.
Although “No-Fault” insurance limits the rights of an injured party to sue for damages, at-fault drivers can be held accountable for any expenses over the injured party’s PIP. The standard liability is in place to help cover these costs.
Finally, the uninsured and under-insured motorist insurance is put in place to help you in the event that you are injured by a driver with inadequate liability insurance. This benefit applies only after your PIP has been exhausted.
Minnesota drivers can also benefit from the extra protection of collision and comprehensive insurance coverages, available through all Minnesota auto insurance providers.
|Coverage Type||Required?||Minimum Coverage Amount Required|
|Bodily Injury Liability||Yes||$30,000 per person
$60,000 per accident
|Property Damage Liability||Yes||$10,000|
|Uninsured Motorist Bodily Injury||Yes||$25,000 per person
$50,000 per accident
|Underinsured Motorist Bodily Injury||Yes||$25,000 per person
$50,000 per accident
Auto Insurance for Leased Vehicles in Minnesota (MN)
Most leasing companies in Minnesota typically require drivers to maintain insurance coverage which exceeds the minimums set by Minnesota state law. This is to protect you financially, as well as your leasing company, should they be held partly responsible. Most leasing companies will recommend the following amounts of insurance coverage:
- Bodily injury liability coverage: $100,000 per person/$300,000 per accident
- Property damage liability coverage: $50,000
- Comprehensive and collision coverage: $500 maximum deductible
For More Information About Auto Insurance In Minnesota, Contact:
|Minnesota Driver and Vehicle Services
445 Minnesota Street
St. Paul, MN 55101
|Minnesota Division of Insurance
85 Seventh Place East, Suite 500
St. Paul, MN 55101