Minneapolis is the most heavily populated city in Minnesota, resulting in higher car insurance rates than most other cities in the state. With an average monthly rate of $126 for liability coverage, insurance in the City of Lakes is more expensive than the national liability average of $104.

Liability insurance in Minneapolis also costs more than the Minnesota state average of $93 per month, likely due to high population density and vehicle crime rates.

Here’s how to find the best cheap auto insurance in Minneapolis, including how to compare quotes and coverage options.

3 of the cheapest car insurance companies in Minneapolis

The best car insurance companies in Minneapolis won’t be the same for every driver since each insurer has different criteria for determining rates. Factors that insurance companies use to set your rates include your age, gender, marital status, ZIP code, driving history, and even your credit history.

Not only will these factors vary from one driver to another, but each company weighs each factor differently. This is why it’s so important for consumers to shop around for the best car insurance for their needs. State Farm, Auto-Owners, and USAA each offer distinct benefits, and all have lower average monthly rates than the Minneapolis average. The average quotes included below reflect average U.S. insurance costs.

Best insurer for cheap rates: State Farm

Best insurer for optional coverage: Auto-Owners

Best insurer for military members: USAA

How to get the cheapest car insurance in Minneapolis

The cheapest car insurance in Minneapolis, Minnesota, will vary from one driver to the next. Each insurance company uses its own underwriting formula for determining your rates, and you’ll often receive different rates from companies for the same coverage. This is one reason why shopping around to find the cheapest rate is so important.

Here are some other strategies you can use to get the cheapest rates for the coverage you need:

• Adjust your coverage amount. Increasing your deductible, dropping comprehensive or collision coverage, or lowering your liability amounts will all reduce your premium rates. Just make sure you maintain enough coverage to protect yourself in the event of an accident.

• Ask about discounts. Your insurance company may offer discounts to help you reduce your costs. For example, insurers commonly offer discounts to consumers who bundle their homeowners insurance or renters insurance with their auto policy.

• Consider telematics. Many insurers offer drivers the chance to lower their rates in exchange for installing a telematics device that tracks their driving behavior. Safe drivers may be able to save big with these programs.

Cheapest liability-only car insurance in Minneapolis: State Farm

If you’re found at fault in an accident, liability-only car insurance will cover the cost of repairing or replacing the other party’s property and medical bills. But it won't pay for damage to your vehicle if you cause an accident. Minimum coverage can make sense if your car is paid off, and it's older or less expensive to repair.

But Minnesota is a no-fault state, so drivers in Minneapolis have to carry more than liability-only insurance. State law requires all Minnesota drivers to carry minimum levels of personal injury protection (PIP) insurance, which pays for the policyholder’s medical expenses after an accident, no matter who’s at fault.

Drivers also must carry uninsured and underinsured motorist insurance, which pays for your property damage if you’re in an accident with an at-fault driver without adequate insurance.

Liability insurance in Minneapolis costs an average of $126 per month. The following insurers offer the cheapest liability-only car insurance in Minneapolis:

Cheapest full-coverage car insurance in Minneapolis: State Farm

Full-coverage car insurance generally refers to insurance that includes collision and comprehensive coverage on top of liability coverage.

Collision coverage will pay for physical damage to your car if you cause an accident, while comprehensive coverage pays to repair or replace your car after damage from something other than an accident.

“Comprehensive and collision are common types of car insurance coverage, though no state requires them,” says Loretta Worters, vice president of media relations for the Insurance Information Institute. “However, if you have a loan, your lender would require it.”

Minneapolis drivers pay a monthly average of $207 for full coverage. The following insurers offer the cheapest full-coverage car insurance in Minneapolis:

Car insurance requirements in Minnesota

Minnesota is a no-fault state, meaning each insurance company pays out for the medical costs of its own policyholder, regardless of who caused an accident.1 But if a driver is at fault in an accident, their insurance will pay for the other party’s property damage.

Because the North Star State follows no-fault rules, all drivers must carry personal injury protection, bodily injury liability, property damage liability, uninsured motorist coverage, and underinsured motorist coverage.2 

The minimum requirements for each of these coverages are:

Drivers may purchase more insurance than the Minnesota requirements. That may mean increasing the dollar amount of coverage they carry for each type of required insurance or adding other coverages to their policy. The most common additional coverages are:

Cheapest car insurance for Minneapolis drivers with an incident

Whether you’ve received a speeding ticket, an at-fault accident, a DUI, or another moving violation, you can expect any negative traffic incident to affect your premiums. Insurance companies treat drivers with a history of such incidents as higher risk than drivers with clean records — even if the history is only a single instance.

Minneapolis drivers with a past incident on their record pay $142 per month for liability coverage and $233 for full-coverage insurance.

Even if you don’t have a spotless driving record, you can still find affordable car insurance in Minneapolis. 

Cheapest car insurance for drivers with a speeding ticket: State Farm

Speeding may be common, even among drivers who consider themselves to be safety conscious, but that doesn’t change how dangerous it is. In 2023, speed was a factor in 2,504 accidents in Minnesota, contributing to 64 fatalities and more than 1,400 injuries.3

This helps explain why insurers are so likely to raise your rates after a speeding ticket. On average, Minneapolis drivers with a speeding ticket pay $158 per month for liability coverage. You can find the cheapest liability car insurance options from one of these insurers.

Cheapest car insurance for drivers with an at-fault accident: State Farm

Accidents aren’t just stressful — they can also increase your car insurance rates. Insurance companies generally treat a driver with an at-fault accident as a greater insurance risk, which means the insurer will increase their rates or even drop their coverage, depending on the severity of the accident and the driver’s history. In 2023, Minnesota had 64,733 vehicle crashes, according to Department of Public Safety data.

On average, Minneapolis drivers with a past accident pay $153 per month for liability insurance. The following insurers offer the cheapest liability car insurance for drivers with an at-fault accident in Minneapolis.

Cheapest car insurance for drivers with a DUI: State Farm

Drivers who have been cited for driving under the influence may struggle to find affordable auto insurance. The average cost of liability coverage for Minneapolis drivers with a DUI is $203 per month.

“If you have a DUI violation, your rate will go up,” Worters says. “Insurance companies may consider DUI drivers as riskier to insure or even refuse coverage.”

But many insurers specialize in insuring drivers who can’t get standard insurance because of their driving history. If you have a DUI, you may need to turn to such an insurance company to get the coverage you need — and unfortunately, there’s not a whole lot you can do to reduce your rates post-DUI. 

“It takes time before you can see any rate reductions,” Worters explains. “Keep a clean record and take a driver education course.”

The following companies offer the cheapest liability car insurance for drivers with a DUI in Minneapolis:

Cheapest car insurance for Minneapolis seniors: State Farm

Car insurance rates are highest for young drivers, but premiums tend to decrease for drivers around age 25. But costs go up again slightly around age 70, when accident risks increase for drivers. Insurers increase rates for older drivers to reflect this risk.

The average cost of car insurance for senior drivers in Minneapolis is $102 per month for liability coverage and $168 for full-coverage insurance. The following insurers have the cheapest car insurance for senior drivers in Minneapolis.

Cheapest car insurance for Minneapolis teens: State Farm

With less experience on the road, teen drivers are more likely to get into accidents or engage in risky driving behaviors like texting or speeding. Insurers charge more for teens to account for their increased risk. Minneapolis teens pay $249 per month for liability coverage and $408 for full-coverage insurance.

That doesn’t mean teens (and their parents) are stuck with unaffordable premiums, though.

Here are several ways teenage drivers can help lower their insurance costs:

• Stay on their parents’ insurance policy. Though teens can technically get an insurance policy for themselves, it’s generally much cheaper to stay on a parent’s policy.

• Do well in school. Many insurers offer good student discounts to teen drivers who maintain a certain GPA.

• Drive a safe car. Safer cars are typically less expensive to insure. The Insurance Institute for Highway Safety has compiled a list of safe, practical, and affordable vehicles suitable for teen drivers.

Here are the cheapest car insurance companies for teen drivers in Minneapolis:

Minneapolis car insurance quotes by credit tier

Minnesota allows car insurance companies to use your credit-based insurance score to help determine your premium.4 While your credit history isn’t the only factor used in underwriting to determine your insurance costs, insurers tend to give lower premiums to drivers with good credit and higher premiums to drivers with poor credit.

The good news is that Minneapolis drivers can lower their car insurance costs by improving their credit. Here are the average costs by credit tier in Minneapolis:

Is car insurance more expensive in Minneapolis?

Full-coverage car insurance in Minneapolis costs an average of $207per month, while liability-only coverage costs an average of $126 per month. In contrast, the national average is $184 monthly for full coverage and $104 for liability-only coverage.

Several factors help explain the difference in cost, including geographic location, population density, and crime statistics. For example, the high average annual snowfall in Minneapolis can affect driving risks and behavior, which can increase insurance rates.5 Michigan drivers generally pay higher rates than the national average as well, likely due to the state’s no-fault insurance laws.

More cities in Minnesota

Of the largest cities in Minnesota, Minneapolis has the highest average cost of auto insurance. Compare how much drivers in a few Minnesota cities pay for coverage in the table below.