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Progressive is a solid choice if you're looking to balance coverage options and cost. This brand-name company gives choices that not every insurer does, like a lowering deductible or accident forgiveness if you go claim-free.
You also get options to cover custom equipment installed on your car, gap or rideshare coverage. Plus, Progressive doesn't disappoint with its long list of discounts, especially for safe drivers.
Pros
No. 3 largest car insurer, showing it's a popular choice
Hard-to-find coverage options like rideshare or gap coverage
No-deductible glass repairs
Save 30%+ by tracking driving or staying claim free
Pricing tool helps you buy within your budget
Cons
Slow to respond to complaints
Must be a 5-year customer to qualify for accident forgiveness
Enough locals praise American Family for its competitive prices in Minnesota that it's worth getting a quote to see how much you could save. The company offers all the mainstay coverage of national companies, including rideshare and gap coverage.
American Family also gets solid customer ratings from organizations like J.D. Power, the BBB and the National Association of Insurance Commissioners (NAIC).
Pros
Locals find rates competitive with national insurers
Discounts up to 30% for car safety features
Personalized service through local agents
You won't miss out on extras like rideshare or gap coverage
You might want a quote with Country Financial if you're shopping local companies for the best deal on standard coverage. You'll save the most if you're bundling policies like home and car insurance or if you use Country Financial for other financial needs like investing.
The company also caters to families with teen drivers, offering significant savings if your young driver has good grades and takes a defensive driving course.
Pros
Experienced brand with nearly 100 years in industry
Up to 25% off for bundling policies
Few NAIC customer complaints, a hard achievement
Personalized support through 2,000 local representatives
Cons
May upsell you on other financial products
Some reviewers say that it has a rough claims process
If you drive less than 10,000 to 12,000 miles per year, you could save big by paying for insurance by the mile. Nationwide's mileage-based policy charges you a monthly flat rate plus a few pennies per mile, like five to seven cents.
According to Nationwide, you could save $40 per month over a traditional policy if you drive 500 miles a month. It's also an experienced brand in the industry, backed by an A+ financial rating from AM Best
7 factors that affect car insurance rates in Minnesota
Factors are characteristics specific to you that car insurance companies use to set how much you’ll pay for car insurance. The less risky each of your factors is the less you pay, the riskier you are the more you’ll pay. We’ll break down Minnesotan’s rating factors to keep in mind.
Factor
How it affects your rates
Age
How old you are is a top factor in determining your car insurance rates. With each passing year, you earn more experience on the road. More experience can equal cheaper rates. Teen drivers pay the most, but rates begin to level off around your 20’s with drivers over 50 paying the least.
Gender
Minnesota takes gender into account when determining your rates. Our analysis of Quadrant data found that men under 18 pay 17% more for car insurance compared to women of the same age. But, between 31 and 45, women see rates 5% higher than men. After 45, rates differ between men and women by only 1%, with women on the higher end.
Location
Where you live affects your rates, including where you park your car. High theft rates, high traffic and a high number of uninsured drivers could mean higher rates.
Minnesota vehicle theft rates stand at 250 vehicle thefts per 100,000 inhabitants, according to the FBI’s most recent report on vehicle theft rates. That’s above the national average of 246 vehicle thefts per 100,000 inhabitants.
As for uninsured drivers, 9.9% of Minnesotans on the road are uninsured. That’s less than average for the percent of uninsured drivers in a state according to Insurance Information Institute, with the national average standing at 12.6%.
Driving Record
The better your driving record, the lower your premium. If you’re in an at-fault accident you could see rates increases from 20% to 50%. And DUI’s in Minnesota can increase your rate by around 37%. These types of violations typically stay on your record for about three years.
Vehicle and mileage
Your car’s make, model and trim directly affect how much you’ll pay for car insurance. Things like its cost, safety ratings, the likelihood of theft and sportiness all help insurers determine its cost to insure.
Safer and cheaper vehicles score the lowest rates, with luxury vehicles with higher repair costs resulting in higher premiums.
And, the more you’re on the road, the more at-risk you are to get in an accident, which means higher premiums. However, according to the Bureau of Transportation, Minnesotans drive an average of 53 miles per day, that’s well above the average across the US of 36.1 miles per day.
Credit score
Your credit score is included in your credit-based insurance score which insurers use to help calculate rates. According to the Insurance Information Institute, there is a strong correlation between your insurance score and claims filings. A good credit-based insurance score could mean lower rates.
Minnesota drivers have protections under state laws that regulate the use of your credit history when issuing car insurance policies. Credit score can’t be the only factor used to determine your rates.
Coverage
The more coverage you get and the higher limits you choose, the more protection you’ll have and the more you’ll pay in monthly premiums. And, if you opt for full coverage car insurance that includes comprehensive and collision, the amount of your deductible weighs into your costs too, higher deductibles mean lower monthly premiums.
Coverage that we recommend in Minnesota
The purpose of your car insurance is to help you recover financially after a car accident. While Minnesota’s required coverage is a solid starting point, you need extra protection to cover different kinds of accident damage. Coverage you may need:
Higher liability limits
While Minnesota requires limits of 30/60/10 for liability coverage, think about upping those limits on your policy. You need higher protection than the state-required liability in most cases, especially if another driver takes you to court. Go over how much liability coverage makes sense for you with your insurance agent.
Collision
Anytime that you’re on the road, there’s a chance that you could cause a car accident. In at-fault accidents, yourcollision coveragepays for your car’s damage — if you bought this optional coverage first. Keep in mind that liability coverage pays for someone else’s property damage, not your own.
Consider collision coverage if . . .
Your car loan requires it.
It costs less than your car’s value.
You can’t pay for car repairs or another car out of pocket.
You drive your car regularly, such as for commuting.
Comprehensive
Since car theft happens slightly more than average in Minnesota, consider adding comprehensive coverage. This coverage kicks in for noncollision incidents, including theft, vandalism, severe weather or falling tree branches.
Consider this coverage if . . .
It’s required for your car loan.
You can’t repair or replace your car out of pocket.
Your area has a high risk of theft or serious storms.
Gap coverage
If you finance your car, you might needgap insurance to pay off your car loan if your car gets totaled.
For a totaled car, your insurance company pays for your car’s market value minus depreciation. However, the insurance check may not be enough to pay off your loan. Gap insurance can kick in to pay off the rest.
Consider this coverage if . . .
You have a car loan.
Your loan balance is higher than your car’s depreciated value.
Roadside assistance
Minnesotans drive much more than average. If you fall in this same group, you may wantroadside assistance in case your car breaks down. With this coverage, you get a dedicated customer service number — no need to find towing or other services on your own.
Consider this coverage if . . .
You rely on your car to get around.
You own an older or less reliable vehicle.
You don’t have roadside assistance through your car warranty.
You’d rather not research service providers on your own after a breakdown.
Top 10 auto insurance companies in USA that serve Minnesota
See the top insurers by market share nationally that serve in Minnesota, according to S&P Global. To help you make the right decision for you, we list each company’s ratings from top rating agencies, including:
The Better Business Bureau (BBB) ratingscores how a business interacts with its customers, rating insurers as high as A++.
J.D. Powerscores companies based on customer satisfaction with their price, billing, claims and customer support. The agency scores out of 1,000 points.
The National Association of Insurance Commissioners (NAIC) complaint indexshows how a company’s number of complaints compares to similar companies. Scores lower than 1.00 show that the company sees fewer than the average number of complaints. Scores above 1.00 show more complaints than average.
Finder’s score rates companies based on theircoverage, discounts as well as the BBB, J.D. Power and NAIC ratings.
To get these quotes, we compared rates for the same driver profile in a common zip code in this state.
Good credit
Married
Male
31-35 years old
2017 Toyota Camry LE
State minimum coverage
Which city has the cheapest car insurance in Minnesota?
Of Minnesota’s largest cities, Anoka has the cheapest rates and Andover has the most expensive car insurance rates. Andover drivers could face rates 4 times more than Anoka drivers.
You might need an SR-22 in Minnesota if you’ve gotten a DUI, lost your license or have too many violation points on your driving record. SR-22 tells the state you have the minimum coverage required to get back behind the wheel.
Distracted driving in Minnesota
As of August 1, 2019, Minnesota has cracked down on cellphone use and slow drivers in the left lane. Drivers going below the speed limit in the left lane could face a $125 fine. With the hands-free driving law, drivers can only use touch-free or bluetooth devices while driving, with a fine of $275 for breaking the law.
Bottom line
Exploring the best of Minnesota’s attractions might be fun, but it’s sure to involve a lot of driving. Having the most adequate level of insurance coverage for your needs can provide peace of mind while you’re out on the road.
Get the best price on your car insurance by shopping around for the coverage — and discounts — that are right for you. To learn more about these topics, from rules and regulations to finding the best rates and coverage options, visit our comprehensive guide on car insurance.
Frequently asked questions about Minnesota car insurance
Car insurance rates vary depending on the provider but are often influenced by your driving record, age, gender, city and state and your car’s year, make and model.
Every driver has a right to obtain car insurance in Minnesota. If you’re denied car insurance based on your driving history or any other factor, get in touch with a licensed agent to ask about the Minnesota Automobile Insurance Plan, which provides coverage to higher-risk drivers.
Your car insurance rates could increase if you file a claim. Insurance companies reserve the right to increase your rates or even cancel your coverage after a claim. But these actions are typically reserved for drivers exhibiting risky driving behaviors, filing multiple claims in a short time period or receiving multiple tickets or DUI/DWIs. You’ll receive notification before any cancellation.
Sarah George is a personal finance writer at Finder who’s spent the last four years wielding her digital pen on all things banking and insurance. Her know-how has been featured in such publications as CBS, CNET and Reviews.com, and she was a panelist in Finder’s 2020 money-saving webinar. Sarah earned an English education degree and is a Certified Educator in Personal Finance.
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