What Car Insurance is Cheapest for 18 Year Olds in Minneapolis?

The words “affordable” and “auto insurance” probably shouldn’t be used in the same sentence, especially when searching for the best price on coverage for 18 year olds. Because of the high cost, let’s take a look at some situations that impact insurance premiums, and find a few ways to reduce the price of the next policy you buy.

For teen drivers, one of the more important considerations that determine the price you pay for insurance is where you live in Minneapolis. Regions with larger populations or more claims likely pay more, whereas areas with less people or fewer weather incidents get the luxury of paying less.

The information below rates the most expensive areas in Minnesota for 18 year olds in which to buy car insurance. Minneapolis shows up at #1 with an annual premium of $2,079 for the average insured, which is about $173 per month.

Information shown are comparative as the specific area where the vehicle is garaged can impact price quotes substantially.

The vehicle model you are insuring is a large factor when shopping around for the most affordable insurance for 18 year olds. Vehicles with higher performance, a lack of advanced safety features, or an increased likelihood of liability claims will cost more to insure than more economical and safe models. The next list features auto insurance prices for a handful of the most budget-friendly automobiles to insure in Minnesota.

Data based on single female driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Minnesota minimum liability limits. Discounts applied include safe-driver, and claim-free. Price estimates do not factor in vehicle location which can impact prices significantly.

Based upon the rates shown, you can figure that models like the Honda CR-V, Honda Accord, Ford F-150, Hyundai Elantra, and Ford Escape are a few of the more affordable vehicles to insure for teen drivers. The price for car insurance will tend to be higher just due to the fact that there is more claim risk for 18 year olds, but overall those vehicles will tend to have the lowest prices that you are likely to find.

Minnesota car insurance companies ranked

Ending up with the right insurance company can be difficult considering how many choices drivers have in Minneapolis. The rank data below could help you decide which car insurance companies you want to consider when looking for cheaper rates. These ratings only include companies that insure vehicles nationwide, so companies that may only write in Minnesota are not taken into consideration for the list.

Top 10 Major Auto Insurance Companies in Minneapolis Ranked by Customer Satisfaction

1. USAA – 92%
2. American Family – 88%
3. State Farm – 88%
4. Nationwide – 88%
5. 21st Century – 88%
6. The Hartford – 87%
7. Progressive – 87%
8. AAA Insurance – 87%
9. Farmers Insurance – 87%
10. Liberty Mutual – 87%

Top 10 Major Auto Insurance Companies in Minneapolis Ranked by Value

1. USAA
2. GEICO
3. AAA Insurance
4. Liberty Mutual
5. State Farm
6. Allstate
7. Safeco Insurance
8. Travelers
9. 21st Century
10. Nationwide

Bad driving habits will cost you more

The easiest method to obtain good car insurance rates for teen drivers is to be an attentive driver and avoid accidents and keep your driving record clean. The example below illustrates how traffic citations and accident claims can increase car insurance costs for different ages of insureds. The costs are based on a married male driver, full coverage, $100 deductibles, and no other discounts are factored in.

In the previous example, the average cost of a car insurance policy in Minnesota per year with no violations or accidents is $2,077. Get two speeding tickets and the average cost surges to $2,875, an increase of $799 each year. Now include two accidents along with the two speeding tickets and the 12-month cost of car insurance for 18 year olds jumps again to an average of $5,740. That’s an increase of $3,663, or $305 per month, just for not being more responsible behind the wheel!

Minneapolis car insurance rates

Minnesota car insurance rates are impacted by many factors that control the policy premium. Simply turning a year older, increasing deductibles, or getting a DUI may generate price changes that can cause some rates to be cheaper than competitors.

Also, companies change the rates they charge in Minnesota at least once a year to ensure their profitability. Significantly higher claims can result in rate hikes, while lower claim levels may cause cheaper Minneapolis car insurance rates.

The chart below compares the cheapest car insurance in Minneapolis, MN for a 35-year-old female driver with no prior claims, no tickets, and good credit. If we estimate prices based on her current risk factors, Travelers might quote the cheapest car insurance rates in Minneapolis at $895 each year. This is $526 less than the average premium paid by Minnesota drivers of $1,421. Farm Bureau Mutual, USAA, The Hartford, and Western National also make the list of the top five cheapest Minneapolis, MN auto insurance companies.

The example below compares rates after we give the driver from the above example a couple of claims, less-than-perfect credit, and a few traffic violations. Due to the fact that every auto insurer uses their own formula for determining rates in each state, comparing rates may now result in a new list of the cheapest companies as shown below.

Farm Bureau Mutual now has the cheapest rate in Minneapolis, MN with USAA, Allied, State Farm, and California Casualty completing the list. This illustrates why drivers need to perform an extensive rate comparison when trying to find the cheapest auto insurance rates for 18 year olds. Prices are made up of many different factors and change substantially, so the cheapest option two years ago may now be one of the more expensive options.