Best cheap car insurance in Minneapolis for 2025

The best car insurance companies in Minneapolis

The best car insurance in Minnesota will vary from person to person, but many carriers have affordable rates for full coverage. Like many big city residents, Minneapolis drivers pay more for car insurance than rural drivers thanks to more traffic and a greater likelihood of filing a claim. Bankrate analyzed average rate quotes provided by Quadrant Information Services from every ZIP code in the state. Next, we reviewed each insurance company’s available coverage options and discounts, AM Best financial strength ratings and J.D. Power customer satisfaction scores. After compiling this information, we were able to assign each company a Bankrate Score — on a 5.0 scale — which reflects each carrier's overall performance across these multiple rating categories.

The cheapest car insurance companies in Minneapolis

Car insurance rates have skyrocketed nationwide, and location plays a large part in car insurance costs. Minneapolis drivers may pay more for living in Minnesota's biggest city. City drivers face a higher risk of collision, theft and vandalism claims, and metropolitan areas also usually have higher costs associated with auto repairs and medical bills. Below are the five carriers that offer the cheapest average car insurance rates for minimum coverage for Minneapolis drivers.

How much is car insurance in Minneapolis, Minnesota?

The average cost of Minneapolis auto insurance is $2,836 per year for full coverage and $907 for minimum coverage. Your own rate will vary from these averages as auto insurance is a highly individualized product, and factors such as location, age and driving history will impact your premium.

Minneapolis rates for teens

Like most states, Minnesota allows age and driving experience to be used as an insurance rating factor, and teen drivers tend to pay more for auto insurance than any other age group. Teen driving statistics reveal that these inexperienced drivers speed more, get into more accidents and are less likely to wear a seatbelt compared to older drivers. Teen drivers can save money on car insurance by staying on their parents' policy for as long as they live at home and applying for driving discounts geared towards young drivers.

Minneapolis rates for young drivers

As new drivers gain more experience, their insurance rates usually decline. Once drivers move out of their teen years and into their 20s, they typically stop sharing a vehicle with their parents or living at the same address. Once they have their own residence, most insurance companies will require young drivers to get their own insurance policies. Since this policy is rated with the adult child as the named insured, the insurance premiums are usually still high.

Minneapolis rates for adults

Once drivers turn 25, the insurance industry no longer considers them youthful operators. Young drivers are usually moved into the standard risk group or even the preferred risk group if they have maintained a clean driving record and meet the insurance company's underwriting criteria.

Minneapolis rates for senior drivers

Once drivers surpass age 70, car insurance rates can get more expensive. Eyesight and reaction time can start to decline as drivers get older, and this correlates to a slight increase in accident rates for senior drivers. Senior drivers may want to consider shopping for insurance companies offering low-milage plans or senior defensive driving discounts to help offset rising premiums.

The cheapest car insurance in Minneapolis by driving record

Your driving record significantly impacts your car insurance rates. Insurers assess your risk level based on your history of moving violations, accidents and claims. While a clean driving record often results in lower premiums, nobody is perfect — most people have driving incidents on their records at some point in life. Insurers weigh various moving violations and accidents differently, which is why shopping your insurance policy among different carriers can help you save money.

Car insurance with a speeding ticket in Minneapolis

Speeding is a primary factor in the majority of car insurance accidents. As a result, insurance carriers usually increase auto rates for three to five years for drivers with speeding tickets to accommodate for the added risk. On top of higher insurance rates, drivers who receive speeding tickets in Minnesota usually incur fines starting at $125. The average annual cost of full coverage car insurance after receiving a speeding ticket in Minneapolis is $3,499, which is 9 percent more than the state average cost after a speeding ticket.

Car insurance after an accident in Minneapolis

Accidents increase your car insurance rates with most providers. In Minneapolis, drivers pay an average of $4,114 per year for full coverage car insurance after an accident, 38 percent more than the Minnesota average post-accident cost.

Car insurance after a DWI in Minneapolis

DWIs are considered one of the most severe driving infractions due to the risk of causing a car accident with high liability and property damage claims. Finding cheap car insurance in Minneapolis can be challenging once insurance providers consider you a high-risk driver. Many drivers find car insurance with nonstandard carriers a more affordable option. Minneapolis drivers convicted of a DWI pay an average of $6,207 per year for full coverage insurance.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze May 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2023 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.

Age: Rates were calculated by evaluating our base profile with the ages 20-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Teens: Rates were determined by adding a 16- or 18-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.

Bankrate Score

Our 2025 Bankrate Score for auto insurance considers key variables that our insurance editorial team determined impact policyholders’ experiences with an insurance company. These factors include a robust assessment of each company’s cost of coverage, product availability, financial strength ratings, online capabilities and customer and claims support accessibility. We grouped these factors into three essential categories — cost and ratings, coverage and savings, and support — which we then weighted in a tiered approach. 

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto insurance companies satisfy these priorities, our team analyzed quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the National Association of Insurance Commissioners (NAIC). 
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated the discount options listed on each company’s website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored in a company’s corporate sustainability efforts.