How Much Is Car Insurance in Minnesota 2025? Real Costs

If you're shopping for auto insurance in Minnesota this year, you're probably wondering whether you're overpaying. The answer depends on where you live, what you drive, and how you've structured your coverage. Here's what Minnesota drivers actually paid in 2024 and what you can expect in 2025—plus the specific factors that could raise or lower your premium by hundreds of dollars.

Average Car Insurance Costs in Minnesota for 2025

According to the National Association of Insurance Commissioners (NAIC), Minnesota drivers paid an average of $1,035 per year for full coverage auto insurance in 2024. That breaks down to about $86 per month. For 2025, industry projections suggest a modest increase of 3-5%, putting the average closer to $1,070-$1,090 annually.

That said, "average" doesn't tell the whole story. I've quoted policies ranging from $650 to over $2,400 per year for Minnesota drivers, all for the same coverage types. The difference comes down to individual risk factors and how insurers weight them.

Here's how Minnesota compares nationally:

• National average: $1,428 per year (NAIC, 2024)
• Minnesota ranking: 37th most expensive state
• Neighboring states: Wisconsin ($946), Iowa ($1,027), North Dakota ($1,289), South Dakota ($1,158)

Minnesota State Minimum vs. Full Coverage Costs

Minnesota law requires all drivers to carry minimum liability coverage of 30/60/10:

• $30,000 bodily injury per person
• $60,000 bodily injury per accident
• $10,000 property damage

The average cost for state minimum coverage in Minnesota is approximately $425-$475 per year ($35-$40 monthly). However, I rarely recommend this level of coverage to my clients. If you cause an accident resulting in $80,000 in medical bills, you're personally liable for the $20,000 gap above your $60,000 limit.

Full coverage—which includes collision, comprehensive, liability beyond minimums, and uninsured/underinsured motorist protection—averages $1,035-$1,090 annually. For perspective, Minnesota's auto insurance requirements are middle-of-the-road compared to other states, but they're far from comprehensive protection for most families.

What Actually Determines Your Minnesota Car Insurance Rate

Age and Driving Experience

Age remains one of the most significant rating factors:

• 16-19 years old: $2,800-$4,200 (often added to parent's policy)
• 20-24 years old: $1,600-$2,400
• 25-34 years old: $1,100-$1,500
• 35-54 years old: $950-$1,200
• 55-64 years old: $900-$1,100
• 65+ years old: $850-$1,000

Location Within Minnesota

Your zip code matters significantly:

• Minneapolis: $1,140-$1,280
• St. Paul: $1,120-$1,260
• Bloomington: $1,050-$1,180
• Rochester: $980-$1,120
• Duluth: $920-$1,060
• Rural Minnesota counties: $750-$950

Twin Cities premiums run 20-30% higher than rural areas due to higher accident frequency, vehicle theft rates, and repair costs.

Driving Record Impact

• Speeding 10-15 mph over: 15-20% increase
• At-fault accident ($2,000+ damage): 30-40% increase
• DWI/DUI: 60-80% increase, plus SR-22 filing requirement

A single DWI in Minnesota can increase your insurance costs by $1,500-$2,000 annually for three to five years.

Credit-Based Insurance Score

Minnesota is one of 47 states where insurers can use credit-based insurance scores. The difference between excellent and poor credit can mean a 30-50% premium variation even with identical driving records.

How to Lower Your Car Insurance Costs in Minnesota

1. Compare Quotes from Multiple Carriers

I've seen identical coverage quoted at $1,100 from one carrier and $1,680 from another—a $580 annual difference. Get quotes from at least three carriers annually.

2. Maximize Available Discounts

• Multi-car discount: 10-15%
• Homeowners/renters bundle: 15-25%
• Good student discount: 15-25% for students under 25 with B average
• Defensive driving course: 5-10%
• Vehicle safety features: 5-15%
• Paid-in-full discount: 5-10%

Stack multiple discounts. A married couple bundling home and auto can see combined discounts of 35-40%.

3. Adjust Your Deductibles

Increasing from a $500 to $1,000 deductible saves approximately $150-$250 annually. The tradeoff: you need that amount accessible in an emergency fund. Read more about this in my article on understanding car insurance deductibles.

4. Improve Your Credit Score

A credit score improvement from "fair" (580-669) to "good" (670-739) can reduce your auto insurance premium by $150-$300 annually in Minnesota.

5. Maintain Continuous Coverage

Lapses in insurance coverage flag you as high-risk. Even a single day without coverage can increase your rate by 10-30%.

6. Consider Usage-Based Insurance

Programs like Drivewise (Allstate) or Snapshot (Progressive) can save safe drivers 10-30% based on actual driving behavior.

Minnesota-Specific Factors for 2025

Winter Weather and Claims

Minnesota winters are hard on vehicles. Comprehensive claims spike November through March due to deer collisions, windshield damage from road salt, and hail damage. Our comprehensive coverage costs 8-12% more than neighboring states with milder winters.

Uninsured Motorist Rates

Approximately 11.5% of Minnesota drivers are uninsured (Insurance Research Council). I strongly recommend uninsured/underinsured motorist coverage at limits matching your liability coverage—it costs about $75-$150 annually.

No-Fault System

Minnesota operates under a "choice no-fault" system. Most drivers choose no-fault coverage because it provides immediate medical payment without proving fault. PIP coverage typically costs $80-$150 annually.

Get a Personalized Quote

Generic averages only tell you so much. Your actual rate depends on your specific combination of age, location, vehicle, driving record, credit score, and coverage choices.

I've helped hundreds of Minnesota families find the right coverage at the right price. Whether you're a first-time buyer, adding a teen driver, or looking to reduce costs, I can provide multiple quotes from top-rated carriers.

Get your free quote — I'll review your current coverage, identify potential savings, and explain your options with no pressure.