Figuring out which company offers the lowest-priced insurance rates for low income drivers requires a little more sweat than just comparing a company or two.
Each auto insurer has a proprietary formula to set their prices, so let’s look at the rankings for the insurance companies with the most affordable rates in Minneapolis, MN. It’s important to understand that Minneapolis insurance rates are influenced by many factors which can substantially change the policy premium. Simply turning a year older, adding a teenager to your policy, or getting a couple of tickets can trigger rate changes that can now make some companies cheaper than others.
Find Cheaper Car Insurance in Minnesota
|Rank||Company||Cost Per Year|
|2||Farm Bureau Mutual||$813|
|6||West Bend Mutual||$972|
|13||Auto Club Group||$1,339|
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Travelers normally has some of the best car insurance rates in Minneapolis at around $661 annually. Farm Bureau Mutual, USAA, Western National, and The Hartford also are some of the more affordable Minneapolis, MN insurance companies.
In the above rates, if you are insured with USAA and switched to Travelers, you may see a yearly price reduction of around $162. Customers with Western National might save as much as $240 a year, and The Hartford policyholders might realize rate reductions of up to $303 a year.
To find out how your current rates compare, click here to get quotes or visit several of the following companies.
Bear in mind that those prices are averages across all ages of drivers and types of vehicles and and are not calculated with a specific zip code for low income drivers. So the car insurance company that can offer you the best price may not even be in the top 24 companies in the list above. That affirms the importance of why you need to quote rates from as many companies as possible using your own personal information and vehicle type.
One of the more important considerations that help determine the annual cost of car insurance is your address in Minneapolis. Cities with larger populations are more likely to have higher rates, whereas more rural areas tend to receive slightly lower rates.
The information below lists the most costly cities in Minnesota for low income drivers to purchase auto insurance in. Minneapolis is ranked #1 having an annual price of $2,079 on average, which is approximately $173 each month.
|Rank||City||Premium Per Year|
|16||Saint Louis Park||$1,702|
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Rate quotes are comparative as specific location information can influence coverage rates greatly.
The vehicle model needing coverage is a large factor that determines whether or not you can buy the best insurance for low income drivers. Vehicles with reasonable performance levels, excellent safety ratings, or a track record of few liability claims will cost less to insure than higher performance models. The list below outlines coverage prices for some of the most affordable vehicles to buy insurance for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Jeep Wrangler Sport 4WD 2-Dr||$1,422|
|Ford Escape Limited 2WD||$1,605|
|Dodge Grand Caravan Hero||$1,621|
|Honda Odyssey EX-L||$1,706|
|Honda CR-V EX-L 4WD||$1,722|
|Volkswagen Jetta SEL 4-Dr Sedan||$1,738|
|Jeep Grand Cherokee Limited 2WD||$1,744|
|Ford F-150 XLT Crew Cab 2WD||$1,762|
|Honda Civic SI 4-Dr Sedan||$1,791|
|Chevrolet Impala LS||$1,823|
|Ford Focus SES 2-Dr Coupe||$1,829|
|Hyundai Elantra SE Touring Station Wagon||$1,828|
|Honda Accord EX-L 4-Dr Sedan||$1,838|
|Ford F-250 XL Super Cab Cabela Package 2WD||$1,855|
|Kia Optima EX||$1,860|
|Chevrolet Malibu LS||$1,857|
|Dodge Ram Quad Cab Sport 2WD||$1,886|
|Toyota Tacoma 4WD||$1,894|
|Ford Explorer XLT 4WD||$1,886|
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Price data assumes single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Minnesota minimum liability limits. Discounts applied include multi-policy, safe-driver, homeowner, multi-vehicle, and claim-free. Estimates do not factor in specific Minneapolis, MN garaging location which can lower or raise premiums substantially.
By looking at the data, you can conclude that vehicles like the Jeep Wrangler, Toyota Prius, Ford Escape, Dodge Grand Caravan, and Honda Odyssey are a few of the most economical vehicles to insure for poor drivers.
Cost difference between full coverage and liability
Paying less for insurance should be important to the majority of people, and one of the fastest ways to find cheaper insurance for low income drivers is to buy only liability coverage. The chart below visualizes the comparison of auto insurance costs with full coverage compared to only the Minnesota minimum liability coverage. The prices are based on no driving violations, no at-fault accidents, $250 deductibles, drivers are not married, and no discounts are factored in.
Averaged for all age groups, full coverage costs an additional $1,670 per year more than just insuring for liability. That is a significant amount which raises the question when is it a good idea to stop buying full coverage. There is no specific rule to eliminate comp and collision coverage, but there is a general guideline you can use. If the yearly cost of comp and collision coverage is 10% or more of the replacement cost minus the deductible, then you might consider buying liability only.
For example, let’s assume your vehicle’s replacement value is $7,500 and you have $1,000 physical damage deductibles. If your vehicle is totaled, the most you would receive is $6,500 after the deductible is paid. If it’s costing in excess of $650 annually for physical damage coverage, then you may want to consider only buying liability coverage.
There are a few situations where buying only liability insurance is not a good plan. If you haven’t paid off your loan, you are required to maintain full coverage in order to keep the loan. Also, if you can’t afford to buy a different vehicle in the even your car is totaled, you should not consider dropping full coverage.
The information below shows how choosing a deductible can raise or lower insurance prices when researching cheap insurance for low income drivers. The rate quotes are based on a married female driver, full coverage, and no additional discounts are factored in.
In the chart above, a 30-year-old driver could save $340 a year by changing from a $100 deductible to a $500 deductible, or save $512 by choosing a $1,000 deductible. Young drivers, like the Age 20 category, have the ability to save as much as $724 every year by using higher deductibles when buying full coverage. If you do raise deductibles, it will now be necessary to have additional funds in a savings account to allow you to cover the extra out-of-pocket expense. That is the one drawback of using higher deductibles.
Types of discounts on Minneapolis car insurance
Insurers that offer cheap quotes for low income drivers may also offer discounts that could reduce prices by 30% or more if you qualify for them. A list of insurance companies and a partial list of their discounts are:
- State Farm offers premium reductions for safe vehicle, multiple autos, Steer Clear safe driver discount, accident-free, Drive Safe & Save, and good driver.
- Liberty Mutual policyholders can earn discounts including multi-policy, preferred payment discount, newly married, good student, hybrid vehicle, and new move discount.
- American Family includes discounts for multi-vehicle, accident-free, good driver, mySafetyValet, and TimeAway discount.
- Progressive has discounts for good student, online quote discount, homeowner, multi-policy, and multi-vehicle.
- Farmers Insurance may offer discounts for distant student, good student, homeowner, teen driver, business and professional, and bundle discounts.
- Auto-Owners Insurance may have discounts that include anti-lock brakes, group or association, good student, multiple vehicles, and air bags.
- SAFECO may include discounts for safe driver, bundle discounts, multi-car, anti-theft, and teen safety rewards.
The diagram below shows the comparison of insurance prices with and without discounts applied to the premium. Data assumes a female driver, no claims or driving violations, Minnesota state minimum liability limits, full coverage, and $1,000 deductibles. The first bar for each age group shows the average rate with no discounts. The second shows the rates with passive restraint, multiple policy, anti-theft, marriage, vehicle safety, and safe-driver discounts applied. In this example, the average savings per year on insurance for low income drivers is 28% or $481.
Ideas to find low-cost auto insurance for low income drivers
It is possible to find better rates, and here are some of the better money-saving ideas that can help Minneapolis drivers get cheap coverage.
- Raise your physical damage coverage deductibles
- Drop full coverage on older vehicles
- Higher credit ratings may save you money
- Avoid at-fault accidents and claims
- Tickets and violations raise rates
- Safe vehicles generally have lower rates
- Ensure you have the best deal by shopping around regularly
The final tip is certainly vital, as was pointed out in this article. Prices charged by companies fluctuate constantly, so drivers shouldn’t be reluctant to buy a policy from a new company if a better deal can be had.
Many drivers have brand loyalty and that’s fine, but it isn’t a good idea if your bullheadedness ends up costing you a small fortune. If you have a few minutes, compare rates and find cheaper insurance for low income drivers in Minneapolis.