What is the Cheapest Car Insurance in Minneapolis, MN?

One of the more important things that are used to help calculate the price you pay for insurance is your address in Minneapolis. Regions with more people or even just more weather-related claims tend to have more expensive car insurance rates, whereas areas with lower crime rates and fewer weather claims profit from lower rates.

The information below sorts the highest-priced places in Minnesota to purchase a policy in. Minneapolis is listed at #2 with an annual cost of $1,997 for the average insured, which is approximately $166 each month.

Premium costs are comparative as specific Minneapolis garaging address can impact prices noticeably.

Now that we understand where Minneapolis ranks compared to other areas, trying to find cost effective insurance is challenging, and determining which company has the lowest-priced car insurance rates in Minneapolis will require additional perseverance. Every insurance provider uses their own method to establish rates, so to begin we’ll rank the car insurance companies with the overall cheapest rates in Minnesota.

Best Cheap Insurance Rates in Minneapolis

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Travelers offers some of the most affordable car insurance rates in Minneapolis at around $647 annually. This is $774 less than the average premium paid by Minnesota drivers of $1,421. Farm Bureau Mutual, USAA, Western National, and West Bend Mutual also rank well as some of the more affordable Minneapolis, MN car insurance companies.

In the rate table above, if you currently have a policy with USAA and switched to Travelers, you could realize a yearly savings of upwards of $184. Insureds with Western National might save as much as $290 a year, and West Bend Mutual insureds might lower prices by $305 a year.

Understand that those rates are averages across all drivers and vehicles in Minnesota and and are not calculated with a vehicle location in Minneapolis. So the car insurance company that is best suited for you may not even be in the top 24 companies in the list above. That affirms the importance of why you need to quote rates from many companies using your own individual information.

The importance of shopping around

Minnesota car insurance rates are determined by lots of factors which can substantially change the price you have to pay. Turning one year older, buying a home, or getting a ticket for running a stop sign can trigger changes in premium resulting in some companies being more affordable than competitors.

Additionally, auto insurance companies amend premium rates at least once a year to adjust for unexpected claims or profits. Higher than normal claim frequency or severity may cause additional price hikes, while long-term profits can produce cheaper Minneapolis car insurance rates.

For instance, the graph below compares the cheapest car insurance in Minneapolis, MN for a 40-year-old female driver with a clear driving record, no claims, and good financial standing. When comparing rates based on her current risk factors, Travelers has the most affordable car insurance rates in Minneapolis at $877 each year. This is $544 less than the average policy premium paid by Minnesota drivers of $1,421. Farm Bureau Mutual, USAA, Western National, and The Hartford round out the rest of the cheapest Minneapolis, MN auto insurance companies.

Now let’s give the driver from the first rate comparison a chargeable claim, bad credit, and an imperfect driving record. Because each insurer uses their own calculation to set policy rates, comparing rates will most likely result in a completely different list of the cheapest car insurance companies in Minneapolis as shown below.

Farm Bureau Mutual now has the cheapest car insurance in Minneapolis with USAA, Allied, State Farm, and California Casualty now rounding out the top five. This example proves why it is important to compare as many rates as possible to get the most budget-friendly insurance rates in Minneapolis. Auto insurance prices can be altered by many different factors and can change without notice, so the cheapest company the last time you checked may now not even be in the top five.

The type of vehicle that needs insurance is a significant factor when shopping for low-priced insurance in Minneapolis. Vehicles with higher performance characteristics, poor safety ratings, or a track record of large liability claims will cost substantially more to insure than safer, lower-performance models. The next table ranks car insurance premiums for a selection of the cheapest vehicles to buy coverage for.

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, multi-policy, safe-driver, and claim-free. Price estimates do not factor in zip code location which can decrease or increase price quotes considerably.

Based upon the table data, cars like the Honda Accord, Toyota Prius, and Ford Explorer are likely to be a few of the cheaper vehicles to insure for drivers in Minneapolis.

Types of discounts on Minneapolis auto insurance rates

Auto insurance companies that offer cheap quotes in Minneapolis may provide policy discounts that can lower rates by 35% or more if you meet specific criteria. The best car insurance companies and some of the discounts are included below.

• Travelers may include discounts for multi-car, student away at school, hybrid/electric vehicle, continuous insurance, early quote, new car, and home ownership.
• 21st Century may have discounts that include automatic seat belts, early bird, homeowners, anti-lock brakes, and theft prevention.
• State Farm has discounts for Steer Clear safe driver discount, multiple policy, accident-free, passive restraint, multiple autos, and good student.
• GEICO policyholders can earn discounts including federal employee, five-year accident-free, military active duty, multi-policy, and good student.
• SAFECO offers discounts for homeowner, anti-lock brakes, drive less, multi-car, anti-theft, accident prevention training, and teen safe driver.
• AAA discounts include multi-policy, anti-theft, good student, pay-in-full, education and occupation, and AAA membership discount.

The information below visualizes the comparison of insurance premiums with and without discounts applied to the policy rates. The premiums assume a male driver, no claims, a clean driving record, Minnesota state minimum liability limits, comprehensive and collision coverage, and $500 deductibles. The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with multiple vehicle, vehicle safety, multiple policy, accident-free, homeowner, and marriage discounts applied. When drivers take advantage of discounts, the average savings per year on car insurance in Minneapolis is 28% or $414.