The vehicle that needs insurance is a large consideration when comparing quotes for economical auto insurance for welfare recipients. Vehicles with lower acceleration and performance, modern passenger safety features, or a positive history of liability claims will cost quite a bit less to insure than high performance models. The data below ranks coverage rates for a selection of the cheapest vehicles to insure in Minnesota.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Ford Escape XLS 2WD||$1,554|
|Honda CR-V LX 2WD||$1,563|
|Jeep Wrangler Sport 4WD 2-Dr||$1,596|
|Ford Focus S 4-Dr Sedan||$1,645|
|Volkswagen Jetta SE 2.5 Station Wagon||$1,661|
|Toyota RAV4 2WD||$1,677|
|Jeep Grand Cherokee Laredo 4WD||$1,683|
|Dodge Grand Caravan SE||$1,736|
|Ford Edge Limited AWD||$1,768|
|Honda Odyssey Touring||$1,800|
|Ford Fusion SE 4-Dr Sedan||$1,808|
|Nissan Rogue SL AWD||$1,889|
|Chevrolet Equinox LS AWD||$1,892|
|Toyota Camry Hybrid||$1,921|
|Toyota Tacoma Double Cab 4WD||$1,935|
|Ford Explorer Eddie Bauer AWD||$1,940|
|Hyundai Elantra GLS 4-Dr Sedan||$1,937|
|Toyota Corolla XLE||$1,946|
|Dodge Ram 2500 Crew Cab SLT 4WD||$1,953|
|Dodge Ram 3500 Crew Cab Laramie 2WD||$1,956|
|Chevrolet Silverado 2500HD LTZ Crew Cab 4WD||$1,972|
|GMC Sierra SLT Extended Cab 2WD||$1,977|
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Cost estimates assume single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Minnesota minimum liability limits. Discounts applied include multi-policy, claim-free, homeowner, multi-vehicle, and safe-driver. Estimates do not factor in your specific Minneapolis, MN location which can raise or lower premium rates considerably.
Based upon the rates shown, we can conclude that vehicles like the Ford Escape, Honda CR-V, and Jeep Wrangler will definitely be the most budget-friendly vehicles to insure for drivers on welfare.
One of the more important criteria that are looked at to help calculate the amount you pay for auto insurance is where you keep your vehicle. Areas with a lot of weather claims or more people tend to have more expensive auto insurance rates, whereas areas with less crime or weather claims tend to receive cheaper rates.
The table below lists the most expensive areas in Minnesota for welfare recipients in which to purchase auto insurance. Minneapolis shows up at #1 with a yearly cost of $2,079 for the average insured, which is approximately $173 monthly.
|Rank||City||Premium Per Year|
|12||Saint Louis Park||$1,702|
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Premium amounts are comparative as vehicle location can impact coverage prices significantly.
Full coverage versus liability only rates
Buying cheaper car insurance is the goal of most people, and one easy way to buy cheap insurance for welfare recipients is to buy liability only. The diagram below illustrates the difference between insurance costs with and without full coverage. The prices are based on no claims, a clean driving record, $500 deductibles, single marital status, and no other discounts are factored in.
Averaged out for all age groups, full coverage costs an extra $1,498 per year more than buying just liability insurance. Lot’s of drivers question if paying for full coverage is worth it. There is no exact rule of when to exclude comprehensive and collision coverage on your policy, but there is a general guideline you can use. If the annual cost of comprehensive and collision coverage is about 10% or more of replacement cost minus your deductible, the it may be a good time to stop paying for full coverage.
For example, let’s say your vehicle’s book value is $4,000 and you have $1,000 policy deductibles. If your vehicle is severely damaged, the most you would get paid by your company is $3,000 after you pay the deductible. If premiums are more than $300 annually for physical damage coverage, then you may need to consider dropping full coverage.
There are some conditions where dropping physical damage coverage is not a good plan. If you still have a loan on your vehicle, you have to keep full coverage to protect the lienholder’s interest in the vehicle. Also, if you cannot afford to purchase a different vehicle if your current one is damaged, you should maintain full coverage.
Discounts on Minneapolis auto insurance
Auto insurance companies that provide coverage for welfare recipients may also give you rate discounts that could potentially reduce rates by 40% or more if you meet specific eligibility requirements. Companies and some of their more popular discounts can be found below.
- Farm Bureau policyholders can earn discounts including renewal discount, safe driver, good student, youthful driver, and 55 and retired.
- Liberty Mutual has savings for preferred payment discount, new vehicle discount, newly married, good student, multi-policy, hybrid vehicle, and new move discount.
- State Farm may include discounts for multiple policy, anti-theft, driver’s education, good student, safe vehicle, passive restraint, and Steer Clear safe driver discount.
- Auto-Owners Insurance may offer discounts for multi-policy, teen driver, air bags, company car, group or association, and safe driver.
- GEICO has discounts for federal employee, five-year accident-free, anti-lock brakes, seat belt use, driver training, membership and employees, and multi-vehicle.
- SAFECO includes discounts for multi-car, drive less, safe driver, homeowner, anti-lock brakes, and accident prevention training.
The diagram below visualizes the comparison of insurance prices with and without discounts applied to the policy premium. The prices are based on a male driver, no accidents or driving violations, Minnesota state minimum liability limits, full physical damage coverage, and $100 deductibles. The first bar for each age group shows the average rate with no discounts. The second shows the rates with defensive driving course, homeowner, accident-free, claim-free, vehicle safety, and safe-driver discounts applied. When these discounts are applied to the policy premium, theaverage amount saved on car insurance for welfare recipients is 28% or $686.
Comparing rates can save you money
Minnesota car insurance rates are calculated based on many things that will increase or decrease the policy price. Turning one year older, having a teen driver, or getting into an accident can trigger rate changes that can cause some rates to be cheaper in comparison to the competition.
Also, companies change rates at least once a year in order to remain profitable. An unexpected high level of claims can result in higher rates, while lower claims may result in more affordable Minneapolis car insurance rates.
To help illustrate this point, the data below analyzes the cheapest car insurance in Minneapolis, MN for a 35-year-old female driver with no violations or accidents, and a good credit rating. When quoting prices based on her current situation, Travelers quotes the most affordable car insurance rates in Minneapolis at $895 annually. This is $526 less than the average policy premium paid by Minnesota drivers of $1,421. USAA, Farm Bureau Mutual, Western National, and The Hartford round out the rest of the cheapest Minneapolis, MN auto insurance companies.
In this next rate comparison, we will give the driver from the first example a couple of claims, bad credit, and a traffic ticket or two. Due to the fact that each insurance company has a proprietary formula for filing rates in each state, analyzing rate quotes could result in a significantly different list of affordable Minneapolis car insurance companies as shown below.
USAA now has the best auto insurance rate in Minneapolis, MN with Allied, Farm Bureau Mutual, State Farm, and California Casualty now rounding out the top five. This example illustrates why it is important to take the time to shop around to get affordable car insurance rates for welfare recipients.
Insurance rates are calculated by many risk factors and can change substantially, so the cheapest rate when you bought your policy may now be wasting a lot of money.
How to find the cheapest insurance for welfare recipients
The list below details some of the better money-saving solutions that can help you get more affordable coverage.
- Do not get traffic citations
- Good credit can help you save money
- Remain accident-free and save
- Full coverage is expensive so only insure older vehicles for liability only
- Higher physical damage deductibles lower rates
- Vehicles with good safety ratings are usually cheaper to insure
- Compare prices as often as possible
The last suggestion is remarkably significant, as we noted in the article above. Prices fluctuate constantly, so don’t be afraid to change to a new company if a cheaper price is available. Being loyal to a particular company is commendable, but it’s not a good idea if that inflexibility results in costing you potentially thousands of dollars a year. It only take a few minutes to compare rates to find cheaper car insurance for welfare recipients in Minneapolis.
If you like to have a little guidance when trying to find the best insurance rates for drivers on welfare, the agents shown below are a good start to aid you in deciding which is the best policy. To locate a Minneapolis car insurance agency using an interactive map, click the button below the list or click here to compare prices now.
TCF Agency Insurance Services Inc
801 S Marquette Ave – Minneapolis, MN 55402 – (612) 661-8400
2736 Lyndale Ave S – Minneapolis, MN 55408 – (612) 872-4004
Allstate Insurance: Mohamud Isse
331 E Lake St – Minneapolis, MN 55408 – (612) 353-6667