The vehicle you are insuring is probably the most important factor that determines whether or not you find the cheapest coverage for first-time drivers. Vehicles with more horsepower, a lack of modern safety features, or a track record of large liability claims will cost quite a bit more to insure than more modest models. The data below features auto insurance costs for some of the most economical automobiles to buy insurance for.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 4WD | $6,015 |
| Ford Escape Limited 2WD | $6,071 |
| Toyota Prius | $6,493 |
| Ford Edge SE AWD | $7,085 |
| Dodge Grand Caravan Hero | $7,140 |
| GMC Sierra SLE Regular Cab 2WD | $7,150 |
| Toyota RAV4 Sport 4WD | $7,140 |
| Volkswagen Jetta S 4-Dr Sedan | $7,147 |
| Chevrolet Equinox LT AWD | $7,140 |
| Ford Explorer Limited AWD | $7,193 |
| Chevrolet Malibu LT | $7,200 |
| Dodge Ram 3500 Crew Cab Laramie 2WD | $7,193 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $7,202 |
| Ford F-150 FX4 4WD | $7,193 |
| Hyundai Elantra Blue 4-Dr Sedan | $7,450 |
| Ford Focus SEL 4-Dr Sedan | $7,458 |
| Honda Odyssey EX-L W/Rear Entertainment | $7,506 |
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Data assumes single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Minnesota minimum liability limits. Discounts applied include safe-driver, and claim-free. Rate quotes do not factor in specific Minneapolis, MN garaging location which can alter premiums noticeably.
Looking at the numbers, vehicles like the Honda CR-V, Ford Escape, Toyota Prius, Ford Edge, and Dodge Grand Caravan are going to be a few of the less-costly vehicles to insure for new drivers. The price for an auto insurance policy will tend to be more expensive anyway because there is more exposure for first-time drivers, but in general those makes and models will tend to have the cheapest car insurance rates compared to all other vehicles.
Determining which company has the cheapest insurance rates for first-time drivers will require more work in order to find a policy that fits your budget. Every car insurance company has a proprietary method for determining rates in each state, so we’ll go over the most budget-friendly insurance companies in Minnesota.
It’s important that you understand Minneapolis, MN insurance rates are impacted by many things which can substantially change the cost of your policy. Getting older, buying a different vehicle, or getting a few speeding tickets can cause premium changes that can make some companies cheaper than others.
Cheap Insurance Rates for Inexperienced Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $641 |
| 2 | USAA | $807 |
| 3 | Farm Bureau Mutual | $837 |
| 4 | Western National | $928 |
| 5 | The Hartford | $964 |
| 6 | West Bend Mutual | $981 |
| 7 | Allied | $1,210 |
| 8 | State Farm | $1,263 |
| 9 | California Casualty | $1,264 |
| 10 | General Casualty | $1,274 |
| 11 | American Family | $1,280 |
| 12 | Auto-Owners | $1,282 |
| 13 | Nationwide | $1,378 |
| 14 | Auto Club Group | $1,393 |
| 15 | Farmers | $1,407 |
| 16 | Progressive | $1,420 |
| 17 | Country | $1,427 |
| 18 | Allstate | $1,437 |
| 19 | North Star | $1,446 |
| 20 | MetLife | $1,549 |
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Travelers may have some of the lowest car insurance rates in Minneapolis at around $641 a year. This is $780 less than the average rate paid by Minnesota drivers of $1,421. USAA, Farm Bureau Mutual, Western National, and The Hartford also are some of the cheapest Minneapolis, MN car insurance companies.
As shown in the table above, if you have coverage with USAA and switched to Travelers, you may see an annual savings of in the vicinity of $166. Policyholders with Farm Bureau Mutual could save as much as $196 a year, and Western National policyholders might see rate reductions of $287 a year.
Remember that these rates are averaged across all drivers and vehicles in Minnesota and and are not calculated with a vehicle location for first-time drivers. So the company that has the lowest price for you may not even be in the top 24 companies in the list above. That emphasizes why you need to get quotes using your own individual information.
For new drivers, one of the big criteria that aid in calculating auto insurance rates is where you normally keep your vehicle. Areas with more people or higher crime rates will most likely pay more, whereas areas with fewer weather claims and lower vehicle theft rates receive better rates.
The following table shows the most costly cities in Minnesota for first-time drivers to purchase a policy in. Minneapolis is listed at #2 with the yearly price of $2,018 for the average insured, which is approximately $168 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Saint Paul | $2,049 |
| 2 | Minneapolis | $2,018 |
| 3 | Maplewood | $1,985 |
| 4 | Brooklyn Park | $1,816 |
| 5 | Richfield | $1,796 |
| 6 | Coon Rapids | $1,792 |
| 7 | Duluth | $1,777 |
| 8 | Saint Louis Park | $1,754 |
| 9 | Bloomington | $1,739 |
| 10 | Woodbury | $1,731 |
| 11 | Blaine | $1,731 |
| 12 | Edina | $1,725 |
| 13 | Maple Grove | $1,724 |
| 14 | Minnetonka | $1,723 |
| 15 | Eden Prairie | $1,723 |
| 16 | Plymouth | $1,714 |
| 17 | Shakopee | $1,693 |
| 18 | Saint Cloud | $1,686 |
| 19 | Eagan | $1,678 |
| 20 | Lakeville | $1,666 |
| 21 | Burnsville | $1,658 |
| 22 | Apple Valley | $1,614 |
| 23 | Rochester | $1,575 |
| 24 | Moorhead | $1,504 |
| 25 | Mankato | $1,474 |
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Information shown are estimated as specific location information can modify coverage rates significantly.
Types of discounts on Minneapolis car insurance
Car insurance companies that sell policies for first-time drivers could also offer policy discounts that could reduce prices by as much as 35% if you meet specific eligibility requirements. A list of companies and a summarized list of policyholder discounts can be read below.
- Progressive may offer discounts for multi-vehicle, online quote discount, homeowner, good student, and continuous coverage.
- The Hartford includes discounts for vehicle fuel type, driver training, good student, bundle, anti-theft, defensive driver, and air bag.
- Mercury Insurance discounts include age of vehicle, multi-policy, location of vehicle, good driver, and type of vehicle.
- GEICO offers discounts for anti-lock brakes, emergency military deployment, daytime running lights, membership and employees, and defensive driver.
- AAA may include discounts for AAA membership discount, multi-policy, pay-in-full, education and occupation, and multi-car.
- State Farm has discounts for Steer Clear safe driver discount, defensive driving training, good driver, safe vehicle, and driver’s education.
The illustration below compares yearly insurance costs with and without discounts applied. The price estimates are based on a male driver, a clean driving record, no claims, Minnesota state minimum liability limits, full coverage, and $1,000 deductibles.
The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with good student, continuous coverage, anti-theft, passive restraint, vehicle safety, and paperless filing discounts applied. With discounts applied, theamount saved on insurance for first-time drivers is 28% or $665.
The information below illustrates how your choice of deductibles can raise or lower annual premium costs when researching cheap insurance for first-time drivers. The premiums are based on a married male driver, full physical damage coverage, and no discounts are applied to the premium.
As shown above, a 30-year-old driver could reduce rates by $328 a year by increasing from a $100 deductible to a $500 deductible, or save $496 by selecting a $1,000 deductible. Even younger drivers, such as the 20-year-old example, could reduce their rates $1,004 each year by choosing larger deductibles on their policy. When insureds make the decision to increase the deductibles on their policy, it will be necessary to have enough funds in savings to enable you to pay the extra out-of-pocket expense associated with higher deductibles.
Finding the right company can be challenging considering how many companies sell insurance in Minneapolis. The company ratings shown next can help you choose which companies you want to consider when comparing rate quotes. These ratings are only comprised of companies that insure vehicles nationwide, so smaller companies that only insure vehicles in Minnesota are not factored into these rankings.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| USAA | 99 | 100 | 90 | 92% | A++ | 97.4 |
| 21st Century | 89 | 86 | 100 | 88% | A | 92.7 |
| GEICO | 97 | 91 | 88 | 85% | A++ | 92.5 |
| Nationwide | 88 | 94 | 91 | 88% | A+ | 91.3 |
| AAA Insurance | 93 | 87 | 88 | 87% | A | 90.8 |
| Liberty Mutual | 91 | 91 | 92 | 87% | A | 90.7 |
| Safeco Insurance | 90 | 93 | 88 | 86% | A | 90.2 |
| State Farm | 91 | 94 | 80 | 88% | A++ | 90.2 |
| Travelers | 89 | 91 | 94 | 79% | A++ | 90.1 |
| American Family | 88 | 92 | 83 | 88% | A | 89.4 |
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Data Source: Insure.com Best Car Insurance Companies
Here’s why you should shop around
Minnesota insurance rates are impacted by many factors which can significantly increase or decrease the price of coverage. Turning one year older, buying a home, or getting caught speeding can cause premium changes that can make some companies more affordable than before.
In addition to those changes, insurance companies file new Minnesota auto insurance rates as needed in order to be able to pay unexpected claims. Higher than normal claims may result in additional premium costs, while lower claims may result in more affordable Minneapolis car insurance rates.
The graph below shows which company has the cheapest car insurance in Minneapolis, MN for a 35-year-old female driver with no prior accidents, a clean driving record, and great credit. If we look at prices based on her current risk factors, Travelers might quote the lowest car insurance rates in Minneapolis at $922 annually. This is $499 less than the average rate paid by Minnesota drivers of $1,421. Farm Bureau Mutual, USAA, The Hartford, and Western National also make the list of the cheapest Minneapolis, MN auto insurance companies.
Now we will give the driver in the first chart a claim or two, a lower credit rating, and a stop sign violation. Since each insurance company uses their own calculation for filing rates in each state, comparing insurance quotes will most likely result in a new list of the cheapest Minneapolis car insurance companies as shown below.
Farm Bureau Mutual now has the best car insurance rate in Minneapolis, MN with USAA, Allied, Travelers, and American Family also having competitive pricing. This example demonstrates why Minnesota drivers need to compare lots of rates to get the best auto insurance rates for first-time drivers.
Prices consist of many things and can change without notice, so the cheapest rate the last time you shopped your coverage around may now be priced much higher than other options.