Wouldn’t life be so easy if we could tell you instantly the single best car insurance company that has the cheapest insurance for good drivers? Unfortunately, it’s just not that easy, as there are a whole bunch of unknowns like if you are married, if you own a home, and what coverage limits you need, that all have an effect on the price. This article delves into the different ways you can keep rates low and will hopefully give you a good start to your coverage search.
The type of vehicle you are insuring is one of the largest considerations that determines whether or not you find affordable car insurance for good drivers. Vehicles with economical engines, a plethora of safety features, or a positive history of liability claims will cost significantly less to insure than higher performance models.
The list below presents car insurance costs for the most economical vehicles to buy coverage for.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Toyota Prius | $1,673 |
| Ford Explorer XLT 2WD | $1,701 |
| Honda CR-V EX 4WD | $1,770 |
| Chevrolet Malibu LS | $1,793 |
| Ford Escape Limited 4WD | $1,879 |
| Ford Edge Sport 2WD | $1,888 |
| Chevrolet Impala LTZ | $1,898 |
| Ford F-150 XLT Regular Cab 2WD | $1,904 |
| Jeep Grand Cherokee Limited 2WD | $1,921 |
| Ford F-350 XL Crew Cab Cabela Package 2WD | $1,955 |
| Honda Odyssey EX | $2,013 |
| GMC Sierra Denali Crew Cab 4WD | $2,047 |
| Chevrolet Silverado LT Crew Cab 2WD | $2,050 |
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Data based on single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Minnesota minimum liability limits. Discounts applied include multi-vehicle, homeowner, claim-free, multi-policy, and safe-driver. Information does not factor in your specific Minneapolis, MN location which can alter prices substantially.
By looking at the data, we can presume that cars like the Toyota Prius, Ford Explorer, and Honda CR-V will definitely be some of the less-costly vehicles to insure for safe drivers.
Comparing rates for affordable auto insurance is challenging, and figuring out which companies offer the best auto insurance rates for good drivers will involve even more diligence.
Every auto insurer uses different criteria to establish rates, so let’s begin by examining the most affordable auto insurance companies in Minneapolis.
Find the Best Cheap Insurance for Good Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $667 |
| 2 | Farm Bureau Mutual | $813 |
| 3 | USAA | $823 |
| 4 | Western National | $910 |
| 5 | The Hartford | $964 |
| 6 | West Bend Mutual | $981 |
| 7 | Allied | $1,174 |
| 8 | California Casualty | $1,227 |
| 9 | American Family | $1,230 |
| 10 | State Farm | $1,250 |
| 11 | General Casualty | $1,261 |
| 12 | Auto-Owners | $1,321 |
| 13 | Farmers | $1,351 |
| 14 | Auto Club Group | $1,352 |
| 15 | Nationwide | $1,378 |
| 16 | North Star | $1,404 |
| 17 | Allstate | $1,437 |
| 18 | Progressive | $1,463 |
| 19 | Country | $1,470 |
| 20 | MetLife | $1,549 |
| Find Your Rate Go | ||
Travelers generally has some of the best car insurance rates in Minneapolis at around $667 per year. This is $754 less than the average price paid by Minnesota drivers of $1,421. Farm Bureau Mutual, USAA, Western National, and The Hartford would also make the list of some of the lowest-priced Minneapolis, MN insurance companies.
As the example above demonstrates, if you currently buy coverage from Western National and switched to Travelers, you may realize an annual premium reduction of approximately $243. Insureds with The Hartford might save as much as $297 a year, and West Bend Mutual insureds might lower prices by $314 a year.
Remember that these policy prices are averaged for all types of drivers and the different vehicles they drive and do not take into consideration a vehicle location for good drivers. So the company that fits your age and vehicle best may not even be in the top 24 companies in the list above. That illustrates why you need to get rate quotes using your own driver and vehicle profiles.
Poor driving habits will raise your auto insurance rates
The easiest method to earn low auto insurance rates for safe drivers is to be a careful driver and avoid at-fault accidents and violations. The diagram below demonstrates how speeding tickets and fender-benders raise car insurance costs for different ages of insureds. The rates are based on a single male driver, full physical damage coverage, $100 deductibles, and no additional discounts are factored in.
The data charted above shows the average cost of a car insurance policy in Minnesota per year with no violations or accidents is $2,436. Get two speeding tickets and the average cost swells to $3,236, an increase of $800 each year. Then throw in one accident along with the two speeding tickets and the yearly cost of auto insurance for good drivers increases to an average of $4,057. That’s an increase of $1,621, or $135 per month, just for not driving responsibly!
Types of discounts on Minneapolis insurance rates
Insurers that sell policies for good drivers could also offer rate discounts that could potentially reduce rates by 25% or more if you are eligible for them. Companies and their offered discounts include:
- The Hartford may include discounts for bundle, anti-theft, air bag, driver training, and vehicle fuel type.
- American Family may offer discounts for multi-vehicle, air bags, accident-free, TimeAway discount, and bundled insurance.
- Progressive offers discounts including continuous coverage, multi-vehicle, online quote discount, homeowner, multi-policy, online signing, and good student.
- Travelers has savings for student away at school, home ownership, save driver, continuous insurance, multi-policy, early quote, and multi-car.
- Farmers Insurance discounts include youthful driver, teen driver, multi-car, alternative fuel, mature driver, and business and professional.
- USAA offers premium reductions for loyalty savings, driver training, vehicle storage, multi-policy, and new vehicle.
- Liberty Mutual offers discounts for new vehicle discount, multi-car, newly married, new move discount, safety features, and preferred payment discount.
The example below visualizes the comparison of insurance premiums with and without discounts applied to the policy premium. The costs are based on a male driver, no accidents, no driving violations, Minnesota state minimum liability limits, full physical damage coverage, and $1,000 deductibles. The first bar for each age group shows premium with no discounts. The second bar shows the rates with vehicle safety, accident-free, safe-driver, claim-free, defensive driving course, and anti-theft discounts applied. When these discounts are applied, the average amount saved each year on auto insurance for good drivers is 28% or $371.
The chart below illustrates how your deductible choice can raise or lower annual premium costs when researching cheap insurance for good drivers. The rate quotes are based on a single male driver, comprehensive and collision coverage, and no discounts are applied to the premium.
In the chart above, a 40-year-old driver could lower their policy premium by $260 a year by changing from a $100 deductible up to a $500 deductible, or save $394 by changing to a $1,000 deductible. Even younger insureds, like the 20-year-old, could drop their prices as much as $856 every year by using higher deductibles when buying full coverage.
If you do raise deductibles, it will be important to have enough in a savings account to be able to cover the extra out-of-pocket expense. That is the one disadvantage of using higher deductibles.
A good deal can quickly turn bad
Minneapolis, MN auto insurance rates are determined by lots of factors which can substantially decrease or increase the policy premium. Improving your credit score, having a teen driver, or getting a DUI can trigger price changes that can now make some companies more affordable than the competition.
And not only may your rating factors change, but insurers file new rates as needed in order to maintain liquidity for claims. Heavier than normal losses can result in additional price hikes, while a profitable period can produce cheaper Minneapolis car insurance rates.
For example, the graph below analyzes the cheapest car insurance in Minneapolis, MN for a 30-year-old male driver with no accidents or violations, and good credit. If we estimate prices based on his current rating profile, Travelers may have the cheapest car insurance rates in Minneapolis at $904 each year. This is $517 less than the average policy premium paid by Minnesota drivers of $1,421. Farm Bureau Mutual, USAA, Western National, and The Hartford are the rest of the best Minneapolis, MN auto insurance companies.
The next chart shows rates after we give the driver from above some claims, a lower credit rating, and an imperfect driving record. Due to the fact that each insurance company has their own unique process to establish rates, analyzing rate quotes may now result in a completely different list of cheap Minneapolis auto insurance companies as shown below.
Farm Bureau Mutual now has the best car insurance rate in Minneapolis, MN with Travelers, USAA, Allied, and Western National completing the list. This example shows why Minneapolis drivers need to compare as many rates as possible to get the lowest auto insurance rates for good drivers. Insurance rates can be altered by many things and change substantially, so the lowest-price company six months ago may now not even be in the top five.