What car insurance costs in Minnesota

The Minnesota average against the national one

Each year the National Association of Insurance Commissioners (NAIC) reports what insurers collected per insured car in every state. For 2023, its latest state-level year, Minnesota's average expenditure was $1,103, up 15% from $962 in 2022, a rise close to the national one.

Liability averaged about 26% less than the U.S. figure, and collision about 22% less. Comprehensive went the other way: at $321 it was roughly 35% above the national average, so it makes up a bigger share of a fully covered Minnesota car's bill than it does elsewhere. That makes the comprehensive deductible worth a look when you compare quotes.

Minnesota's no-fault requirements

Minnesota law requires auto insurance, and the minimums are set in the state's no-fault act. Each policy must include:

• Liability: at least $30,000 for injury to one person, $60,000 for injuries to two or more people and $10,000 for damage to others' property.
• No-fault (personal injury protection): at least $40,000 per person, split into $20,000 for medical expenses and $20,000 for income loss, replacement services, funeral costs and survivor's losses. It pays no matter who caused the crash.
• Uninsured and underinsured motorist coverage: both are required as separate coverages, each at least $25,000 per person and $50,000 per accident.

No-fault doesn't pay to fix your own car; that takes collision coverage. The Minnesota Department of Commerce also advises filing a no-fault claim within six months of an accident. Before trimming anything above the minimums, read our guide to limits and deductibles.

How rates and credit are regulated

Under Minnesota's rate law for casualty insurance, insurers must file their rates with the commissioner of commerce no later than the date they take effect; the law doesn't call for approval first. The commissioner may hold a hearing on an increase of 25% or more within 12 months. The Department of Commerce notes that how rates are determined varies by company, which is why shopping around matters.

Credit history can count. The Department lists it among the factors that affect premiums, and Minnesota Statutes section 72A.20, subdivision 36, sets limits. An insurer can't reject, cancel or refuse to renew a policy on credit without weighing other underwriting factors. If a catastrophic illness or injury, a temporary job loss or the death of an immediate family member hurt your credit, you can ask for a reasonable exception. You can also ask the insurer to re-check your score, up to twice a year, with any change applied at renewal. More on credit-based insurance scores.

A discount the law requires

Minnesota requires insurers to cut the premium for drivers 55 and older who complete an approved accident prevention course. The statute sets the reduction at no less than 10%. The first course and the refresher each run four hours, and you keep the discount by retaking a course every three years. Our page on the defensive driving course discount covers how to find a course and claim it.

Coverage when insurers say no

Insurers in the state form the Minnesota Automobile Insurance Plan, set up under chapter 65B of Minnesota Statutes to make auto insurance available to anyone unable to get it through ordinary methods. A licensed agent can explain how to apply. Our guide to assigned risk plans explains what this kind of coverage usually costs and how to move back to a regular policy.

1. 1 Get quotes on identical coverage. Match liability limits, no-fault, uninsured and underinsured motorist coverage and deductibles so the prices are comparable.
2. 2 Ask about the 55+ course reduction if anyone on the policy qualifies, and keep the certificate current.
3. 3 Call the Department of Commerce if you have a complaint: 651-539-1600 in the Twin Cities or 800-657-3602 in Greater Minnesota, or use the online complaint form.

Questions drivers ask