The words “economical” and “auto insurance” really should not be used together, specifically when searching for the best price on coverage for low mileage drivers. To help control this cost, let’s lead off by showing you some situations that have an impact on insurance premiums, and figure out some ideas to take the sting out of the next policy you buy.
For infrequent drivers, one of the largest considerations that are looked at to determine the cost of insurance is where your residence is in Minneapolis. More densely populated places will most likely pay more, whereas areas with less congestion benefit from lower rates.
The next table sorts the priciest cities in Minnesota for low mileage drivers to purchase a policy in. Minneapolis is listed at #1 with an annual cost of $2,079 on average, which is around $173 per month.
|Rank||City||Average Per Year|
|9||Saint Louis Park||$1,754|
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Rate information is comparative as specific Minneapolis zip code can affect coverage prices significantly.
Determining which company has the lowest-priced insurance rates for low mileage drivers requires a little more effort than just getting one or two price quotes. Each auto insurer has a unique formula for setting rates, so let’s take a look at the insurance companies that tend to be cheaper in Minneapolis.
Best Insurance Companies in Minnesota
|Rank||Company||Cost Per Year|
|2||Farm Bureau Mutual||$805|
|6||West Bend Mutual||$943|
|13||Auto Club Group||$1,339|
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Travelers may have some of the best car insurance rates in Minneapolis at around $661 per year. This is $760 less than the average rate paid by Minnesota drivers of $1,421. Farm Bureau Mutual, USAA, Western National, and The Hartford also make the cut as some of the best Minneapolis, MN auto insurance companies.
As depicted above, if you are a customer of USAA and switched to Travelers, you could realize an annual savings of about $162. Minnesota drivers with Western National may save as much as $249 a year, and The Hartford customers might realize rate reductions of up to $275 a year.
To get a fast rate comparison, click here to begin a quote or quote prices from the following companies.
Bear in mind that those premium estimates are averaged for all drivers and vehicles and do not take into consideration an exact zip code location for low mileage drivers. So the company that has the cheapest rates for you may not even be in the list above. That emphasizes why you need to compare prices as often as possible using your own personal information and vehicle type.
The make and model of vehicle you are buying coverage for is one of the primary factors when comparing quotes for low-priced insurance for low mileage drivers. Vehicles with limited speed and performance, good crash test ratings, or a track record of few liability claims will cost much less to insure than adrenaline junky models. The information below presents auto insurance premiums for a number of the cheapest automobiles to insure in Minnesota.
|Make and Model||Estimated Cost for Full Coverage|
|Chevrolet Silverado LS Regular Cab 4WD||$1,535|
|Honda CR-V LX 2WD||$1,605|
|Chevrolet Impala LS||$1,621|
|Volkswagen Jetta SE 2.5 Station Wagon||$1,631|
|Ford Escape XLS 4WD||$1,715|
|GMC Sierra SLT Extended Cab 4WD||$1,771|
|Jeep Grand Cherokee Limited 2WD||$1,777|
|Kia Optima LX||$1,781|
|Toyota Camry Hybrid||$1,892|
|Chevrolet Equinox LS AWD||$1,894|
|Toyota Tacoma Double Cab 4WD||$1,901|
|Dodge Ram 3500 Mega Cab Laramie 2WD||$1,921|
|Ford F-150 XLT Super Cab 2WD||$1,924|
|Dodge Grand Caravan CV||$1,932|
|Ford Explorer Eddie Bauer 4WD||$1,929|
|Honda Civic VP 4-Dr Sedan||$1,956|
|Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr||$1,964|
|Hyundai Elantra GLS 4-Dr Sedan||$1,991|
|Honda Odyssey EX-L||$2,000|
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Cost estimates assume single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Minnesota minimum liability limits. Discounts applied include claim-free, homeowner, safe-driver, multi-policy, and multi-vehicle. Prices do not factor in specific garaging location which can modify rates greatly.
Based upon the rates shown, vehicles like the Chevrolet Silverado, Honda CR-V, Chevrolet Impala, Volkswagen Jetta, and Ford Escape are a few of the cheapest vehicles to insure for infrequent drivers.
Full coverage versus liability only rates
Reducing premiums for insurance is important to most drivers, and one easy way to buy cheap insurance for low mileage drivers is to buy only liability coverage. The example below illustrates the comparison of insurance costs with full coverage compared to only the Minnesota minimum liability coverage. The information is based on no claims or driving violations, $250 deductibles, marital status is single, and no discounts are applied.
If all age groups are averaged, physical damage insurance costs an additional $1,670 per year more than just insuring for liability. A very common question is if full coverage is worth the money. There is no definitive rule for eliminating physical damage coverage, but there is a guideline you can use. If the yearly cost for physical damage coverage is more than 10% of any settlement you would receive from your insurance company, then it might be time to buy liability only.
For example, let’s pretend your vehicle’s book value is $12,000 and you have $1,000 policy deductibles. If your vehicle is severely damaged, the most you would get paid by your company is $11,000 after the policy deductible has been paid. If it’s costing in excess of $1,100 annually for full coverage, the it may be a good time to stop paying for full coverage.
There are some circumstances where buying only liability insurance is not in your best interest. If you have an outstanding loan on your vehicle, you must maintain physical damage coverage to protect the lienholder’s interest. Also, if your finances do not allow you to purchase a different vehicle if your current one is in an accident, you should keep full coverage on your policy.
Selecting a highly-rated insurer can be challenging considering how many companies sell coverage in Minneapolis. The company ratings shown next may help you pick which auto insurers to look at when trying to find cheaper insurance for low mileage drivers.
The rankings below are for companies that insure vehicles across America, so companies without a large exposure are not factored into this list. To compare price quotes from these and other top-rated companies, click here.
Top 10 Large Auto Insurers Overall in Minneapolis
- 21st Century
- AAA Insurance
- Liberty Mutual
- Safeco Insurance
- State Farm
- American Family
Why you should compare rates
Minneapolis insurance rates are impacted by many things which can substantially change the price you have to pay for coverage. Turning one year older, buying another vehicle, or getting a driving violation can trigger price changes that can make some companies more affordable than before.
Not only may your situation change, but insurance companies file new Minnesota auto insurance rates at least once a year in order to remain profitable. Significantly higher claims may result in additional premium costs, while less frequent claims may cause cheaper Minneapolis car insurance rates.
To illustrate this example, the graph below demonstrates which company has the cheapest car insurance in Minneapolis, MN for a 35-year-old female driver with a clear driving record, no claims, and good financial standing. If we compare prices based on her personal profile, Travelers offers the most affordable car insurance rates in Minneapolis at $869 a year. This is $552 less than the average price paid by Minnesota drivers of $1,421. Farm Bureau Mutual, USAA, Western National, and The Hartford are the remainder of the cheapest Minneapolis, MN auto insurance companies.
The next chart shows rates after we give the driver from the first rate comparison an accident surcharge, a lower credit rating, and a speeding ticket. Because each insurer has their own unique process for determining rates, getting updated rate quotes may now present a slightly different list of cheap Minneapolis auto insurance companies as shown below.
Allied now has the cheapest car insurance in Minneapolis with Farm Bureau Mutual, USAA, State Farm, and California Casualty completing the list. This example illustrates why Minneapolis drivers need to spend some time comparing rates to find affordable auto insurance rates for low mileage drivers. Rates consist of many risk factors and can increase or decrease at any time, so the lowest-price company three years ago may now cost much more than other companies.
The agencies below can most likely aid you in deciding which car insurance company is the best fit, as lots of people like to have a little guidance when buying car insurance for infrequent drivers. It’s not always easy to find the best coverage yourself, and getting advice from a licensed agent can provide peace of mind knowing your policy gives you adequate protection in the event of a claim. To locate a Minneapolis auto insurance agent using an interactive map, click the button below the list or click here to compare prices now.
- Farmers Insurance – Steven Wolfson
1516 W Lake St Suite 203 – Minneapolis, MN 55408 – (612) 822-1287
- Landreau Insurance Group Inc
2615 E Franklin Ave – Minneapolis, MN 55406 – (612) 276-7035
- Allstate Insurance: Ed Scislow
5208 Bloomington Ave – Minneapolis, MN 55417 – (612) 353-5410