Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Former Farmers Insurance CSR

UPDATED: Aug 15, 2020

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Minnesota state flagBefore you even think about buying auto insurance in Minnesota, there’s a few things you should know about the state and it’s auto insurance minimums and requirements:

Known as the “North Star State,” Minnesota is a relatively large sized state situated in the north of the United States, bordering Canada. Also referred to the “Land of 10,000 Lakes,” the state is very well known for its bodies of water, parks, forests, and recreational sites. Minnesota isn’t all wilderness, however. It’s largest city, Minneapolis, is a large and reputable metropolitan area full of businessmen, buildings, and cars. With so many drivers on the road, it’s very important to be well-informed and properly insured. Below are some key tidbits of information that all new drivers should know if interested in purchasing auto insurance.

minnesota auto insurance

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Minnesota Auto Insurance Laws And Requirements

In Minnesota, the state liability coverage minimums are:
  • Bodily Injury Liability Coverage – $30,000 per person
  • Bodily Injury Liability Coverage – $60,000 per accident
  • Property Damage Liability Coverage – $10,000 per accident

Take a look at how Minnesota’s minimum rates compare with surrounding states.

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Uninsured/Underinsured Motorist coverage minimums:
  • Bodily Injury $25,000 per person
  • Bodily Injury $50,000 per accident
Personal Injury Protection (PIP) coverage minimums:
  • $20,000 for medical coverage
  • $20,000 for loss of income
Optional coverage options in MN include:
  • Comprehensive Coverage
  • Collision Coverage
  • Rental Car Reimbursement Coverage
  • Roadside Assistance / Towing Coverage

When it comes to insurance, a state usually has to follow one of two systems, a “tort” system or a “no-fault” system. The state of Minnesota has a “no-fault” system, which makes it so that any injury claims will be paid by your insurance company regardless of who was at fault. Of course, the amount they pay is capped at a certain limit, but payments for injury claims will still be paid to their maximum limit. Because the state follows a “no-fault” system, it makes it harder for the person who wasn’t at fault to sue for more payments.

But even with a “no-fault” system, the state of Minnesota still follows many of the other state’s footprints in issuing a set of minimum limits for different areas of coverage. The first set of limits are minimum requirements for liabilities — specifically for bodily injury and property damage. These liabilities are required by the state to cover for any damages to people in the accident and to the vehicle itself. For bodily injuries, the state insists that all drivers must cover for a minimum of $30,000 per person with an upper limit of $60,000 per accident. The state also requests a minimum of $10,000 in coverage for property damage. This would cover any damages to your motor vehicle in case of an accident. Once again, these listed values are minimum requirements, so they may not always be enough to cover everything you need. For example, if you were to drive a very expensive car, it would be much more wise to get more coverage for property damage since any repairs would be more costly.

With these liability limits, the state also requires all insured drivers to have PIP, or Personal Injury Protection. This coverage helps to pay for any immediate medical expenses for you and your passengers. The minimum coverage required here is $40,000 total (20,000 for medical coverage and 20,000 for loss of income coverage). Another important requirement is for something known as Uninsured/Underinsured Motorist Bodily Injury. What this type of coverage does is it helps prevent you from paying out of pocket if you find yourself in a car accident with an uninsured driver. Just like before, this also has a minimum requirement and covers for bodily injuries. The limits here are at least $25,000 per person and $50,000 per accident.

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Minnesota Auto Insurance Rates

Because Minnesota is No Fault state, the insurance premiums are relatively higher when compared to other states. This is merely because the insurance company always has to pay to fees even if you’re not at fault. This extra pressure on the insurance company to always pay for the expenses puts pressure on the companies and as a result raises the price of insurance. When looking at the prices of auto insurance from a distance, the premiums don’t seem too bad. The average rate in Minnesota is about $1,160, which is roughly $300 less than the national average.

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This average rate also covers the rural areas, whereas a majority of Minnesota’s population is in the cities. In the cities, the insurance rates aren’t as pretty. In both major cities, Minneapolis and Saint Paul, the prices are about $1,700 each — about $300 more than the national average.

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The way prices fluctuate between urban and rural areas are extreme, so it’s always a good idea to look deeper before making a snap call.

There are a lot of factors that auto insurance companies take into consideration when determining your rates. Take a look at our overview here.

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While many of these factors are simply based on your own driving record, two things that affect even the safest of drivers are age and gender. As with most states, males typically pay higher auto insurance rates than females.

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Minnesota Auto Insurance Rates by Company

As a new driver, buying insurance often hits you as strange and intimidating. There are too many numbers to remember and too many documents to sign. At 4AutoInsuranceQuote.com we understand what it’s like to be a new driver and are familiar with the immense pressure you have to deal with in order to get the insurance policy that fits you best. That’s why we make it our goal to do everything we can to make buying auto insurance as easy and straightforward as possible. If you’re interested in getting some of the best prices for auto insurance in Minnesota, you can easily get started by scrolling back to the top of the page and entering your zip code.

Though the state boasts fairly cheap auto insurance rates overall, let’s take a look at how rates vary between some of the largest companies.

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But which companies are the largest, holding the most market share percentage in the region?

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Minnesota Auto Insurance Agents

Minnesota Auto Insurance Agents

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Additional Minnesota Automobile Insurance Information