Deciding which companies quote the lowest-priced car insurance rates for inexperienced drivers requires a little more work than just picking a company at random. Each insurance company has their own process for determining prices, so we will examine the most budget-friendly car insurance companies in Minneapolis, MN.
It’s important that you understand Minnesota car insurance rates are determined by lots of factors that can increase the cost of having a policy. Simply turning a year older, buying a different vehicle, or having a fender bender can trigger rate changes that can cause some rates to be affordable when they were higher priced.
Cheapest Insurance Rates for Newbies
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $667 |
| 2 | Farm Bureau Mutual | $805 |
| 3 | USAA | $807 |
| 4 | Western National | $910 |
| 5 | The Hartford | $954 |
| 6 | West Bend Mutual | $972 |
| 7 | Allied | $1,174 |
| 8 | California Casualty | $1,214 |
| 9 | State Farm | $1,226 |
| 10 | American Family | $1,268 |
| 11 | Auto-Owners | $1,295 |
| 12 | General Casualty | $1,313 |
| 13 | Farmers | $1,365 |
| 14 | Auto Club Group | $1,380 |
| 15 | North Star | $1,404 |
| 16 | Nationwide | $1,420 |
| 17 | Progressive | $1,463 |
| 18 | Country | $1,470 |
| 19 | Allstate | $1,481 |
| 20 | MetLife | $1,534 |
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Travelers has some of the lowest car insurance rates in Minneapolis at around $667 annually. Farm Bureau Mutual, USAA, Western National, and The Hartford also qualify as some of the lowest-priced Minneapolis, MN auto insurance companies.
As illustrated above, if you are insured with Western National and switched to Travelers, you could see an annual savings of in the vicinity of $243. Policyholders with The Hartford might save as much as $287 a year, and West Bend Mutual policyholders might reduce rates by $305 a year.
Understand that those premiums are averaged across all types of insureds and vehicles and are not factoring in a specific vehicle garaging location for inexperienced drivers. So the company that fits your needs best may not even be in the list above. That affirms the importance of why you need to compare rates from as many companies as possible using your own personal information and vehicle type.
The make and model of vehicle to be insured is one of the biggest factors when looking for low-cost insurance for inexperienced drivers. Vehicles with limited top-end speed, a plethora of safety features, or a track record of few liability claims will cost much less to insure than adrenaline junky models.
The data below outlines insurance costs for some of the most economical vehicles to insure in Minnesota.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX-L 4WD | $1,427 |
| Honda Accord EX-L 4-Dr Sedan | $1,513 |
| Dodge Grand Caravan CV | $1,567 |
| Ford Edge SEL AWD | $1,621 |
| Ford Escape XLT 4WD | $1,639 |
| Toyota RAV4 Limited 4WD | $1,653 |
| Toyota Corolla XRS | $1,771 |
| Nissan Altima Hybrid 4-Dr Sedan | $1,781 |
| Hyundai Sonata GLS 4-Dr Sedan | $1,774 |
| Ford Explorer XLT 2WD | $1,795 |
| Dodge Ram Quad Cab TRX4 Off Road 2WD | $1,806 |
| Chevrolet Silverado 3500HD LTZ Crew Cab 2WD | $1,835 |
| Chevrolet Silverado Crew Cab Hybrid 4WD | $1,889 |
| Chevrolet Silverado 2500HD LTZ Crew Cab Diesel 4WD | $1,899 |
| Toyota Prius | $1,902 |
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Above prices assume single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Minnesota minimum liability limits. Discounts applied include multi-policy, homeowner, safe-driver, multi-vehicle, and claim-free. Premium amounts do not factor in garaging location in Minneapolis, MN which can revise insurance rates greatly.
By looking at the data, we can infer that cars like the Honda CR-V, Honda Accord, Dodge Grand Caravan, Ford Edge, and Ford Escape are some of the most budget-friendly vehicles to insure for new drivers.
One of the more important criteria that are looked at to determine the amount you pay for auto insurance is where you live. Areas with high crime rates or more dense population will most likely pay more, whereas areas with lower crime rates and fewer weather claims tend to receive slightly lower rates.
The next table lists the highest-priced areas in Minnesota for inexperienced drivers in which to purchase auto insurance. Minneapolis ranks #1 with an annual cost of $2,079 for the average insured, which is about $173 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Minneapolis | $2,079 |
| 2 | Saint Paul | $2,049 |
| 3 | Maplewood | $2,045 |
| 4 | Coon Rapids | $1,809 |
| 5 | Bloomington | $1,809 |
| 6 | Richfield | $1,760 |
| 7 | Brooklyn Park | $1,744 |
| 8 | Plymouth | $1,731 |
| 9 | Blaine | $1,731 |
| 10 | Woodbury | $1,731 |
| 11 | Duluth | $1,724 |
| 12 | Eagan | $1,712 |
| 13 | Edina | $1,707 |
| 14 | Saint Louis Park | $1,702 |
| 15 | Maple Grove | $1,690 |
| 16 | Minnetonka | $1,672 |
| 17 | Lakeville | $1,666 |
| 18 | Apple Valley | $1,663 |
| 19 | Burnsville | $1,658 |
| 20 | Eden Prairie | $1,655 |
| 21 | Shakopee | $1,642 |
| 22 | Rochester | $1,639 |
| 23 | Saint Cloud | $1,636 |
| 24 | Moorhead | $1,504 |
| 25 | Mankato | $1,474 |
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Table data uses approximated as zip code location can influence coverage rates significantly.
Reckless driving habits raise car insurance rates
In a perfect world, the ideal way to earn good car insurance prices in Minnesota for new drivers is to drive safe and not have accidents or get tickets. The chart below demonstrates how traffic citations and at-fault collisions can affect car insurance rates for different ages of insureds. Data assumes a married female driver, full coverage, $100 deductibles, and no discounts are factored in.
In the chart above, the average cost of auto insurance in Minnesota per year with no accidents or violations is $1,405. Factor in one speeding ticket and the average cost surges to $1,634, an increase of $229 each year. Now include one accident along with the one speeding ticket and the 12-month cost of car insurance for inexperienced drivers goes up to an average of $2,279. That’s an increase of $874, or $73 per month, just for not being attentive to the road!
Choosing the highest-rated car insurance provider is difficult considering how many choices there are in Minnesota. The ranking data shown next may help you decide which companies to look at to insure your vehicles. These ratings are for companies that insure vehicles across America, so smaller regional companies are not included in this list.
| 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 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
Your cheap policy may actually be overpriced
Minneapolis car insurance rates are based on many factors that control the cost of a policy. Getting older, becoming a homeowner, or getting a few speeding tickets may prompt premium changes resulting in some rates now being more affordable than before.
Not only may your situation change, but car insurance companies change premium rates at least once a year to adjust for unexpected claims or profits. Significantly higher losses may result in higher priced premiums, while a profitable period may produce lower-cost Minneapolis car insurance rates.
For instance, the chart below shows which companies have the cheapest car insurance in Minneapolis, MN for a 45-year-old female driver with a clear driving record, no claims, and a good credit history. When quoting prices based on her current rating profile, Travelers may offer the cheapest car insurance rates in Minneapolis at $886 a year. This is $535 less than the average price paid by Minnesota drivers of $1,421. Farm Bureau Mutual, USAA, Western National, and The Hartford are the remaining top five cheapest Minneapolis, MN auto insurance companies.
Let’s now give the driver from the first rate comparison an accident claim, less-than-perfect credit, and a speeding citation. Due to the fact that every insurance company has their own process to establish rates, comparing quotes may now show a different list of affordable companies as shown below.
Farm Bureau Mutual now has the lowest price in Minneapolis, MN with USAA, Allied, State Farm, and Western National also having competitive pricing. This example proves why it is crucial to perform an extensive rate comparison to get the most budget-friendly car insurance quotes for inexperienced drivers.
Insurance rates are made up of many things and can change without notice, so the most affordable company the last time you checked may now be an over-priced policy.
The insurance agencies listed below can probably answer your questions and help you decide which policy fits your needs best, as lots of drivers aren’t clear which coverage they need and would like to get some help when buying car insurance for new drivers. It can be challenging to find coverage yourself, so getting advice from a licensed Minnesota insurance agent can provide you peace of mind knowing you have sufficient coverage for your assets. To find a Minneapolis insurance agency near you, click the link after the list or click here to get price quotes now.
- Bernie Glover Insurance Agency
2520 Lowry Ave N – Minneapolis, MN 55411 – (612) 522-6531 - American Family Insurance – Katie Bard
5459 Nicollet Ave – Minneapolis, MN 55419 – (612) 345-7900 - Oakwood Insurance Inc
5188 Central Ave NE – Minneapolis, MN 55421 – (763) 862-4800 - State Farm: Ashkan Morvari
25 W Diamond Lake Rd – Minneapolis, MN 55419 – (612) 455-4196 - Jeff Meyer – State Farm Insurance Agent
4316 S Upton Ave – Minneapolis, MN 55410 – (612) 920-2340
Find a Minneapolis, MN insurance agent near you
Tips to find more affordable auto insurance for inexperienced drivers
It is possible to find better rates, and here are many thrifty ideas that can help Minneapolis drivers find cheap coverage.
- Higher deductibles mean lower rates
- Lower rates by purchasing a safer vehicle
- If your vehicles are older, consider dropping full coverage
- Ensure your driving record is clean
- Improve your credit
- Staying accident-free helps keep rates low
- Compare rates often to find the best deal
The last tip in the list is highly significant, as we pointed out in the article above. Prices charged by auto insurers adjust frequently, so drivers shouldn’t hesitate to buy from a different company if you can save money.
Staying with the same company for years is fine, but we do not recommend it if that faithfulness ends up costing you hundreds every year. Now is a great time to compare prices and find cheaper auto insurance for inexperienced drivers in Minneapolis.