The words “bargain” and “insurance” really should not be used together, especially when you are trying to find the best insurance rates for drivers under 25. Because it’s so expensive, let’s learn about some of the factors the can have a considerable influence on auto insurance prices, and figure out some ideas to lower the price of your next policy.
Establishing which insurers offer the most affordable car insurance rates for drivers under 25 will take more time in order to find the lowest price quote.
Every auto insurer uses a slightly different approach to set their prices, so we will examine the lowest cost car insurance companies in Minneapolis, MN. It’s important that you understand Minneapolis car insurance rates are influenced by many factors which can significantly increase or decrease the price of coverage. Simply having a birthday, becoming a homeowner, or having an at-fault accident can trigger price changes that can make some companies cheaper than competitors.
Find the Cheapest Car Insurance for Young Drivers
|Rank||Company||Cost Per Year|
|2||Farm Bureau Mutual||$805|
|5||West Bend Mutual||$952|
|15||Auto Club Group||$1,393|
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Travelers has some of the most affordable car insurance rates in Minneapolis at around $647 per year. This is $774 less than the average rate paid by Minnesota drivers of $1,421. Farm Bureau Mutual, USAA, Western National, and West Bend Mutual also qualify as some of the best Minneapolis, MN insurance companies.
As the rates illustrate above, if you currently have coverage with Farm Bureau Mutual and switched to Travelers, you could earn an annual premium reduction of roughly $158. Minnesota drivers with USAA may save as much as $184 a year, and Western National customers might realize rate reductions of up to $281 a year.
If you want to find out if you’re overpaying, click here or click through to the companies below.
Understand that those rates are averages for all ages of drivers and types of vehicles and do not take into consideration a vehicle location for drivers under 25. So the insurer that fits you best may not even be in the list above. That affirms the importance of why you need to compare prices as often as possible using your own specific driver information and vehicle.
The vehicle model you are buying coverage for is a large factor that determines the availability of the most economical car insurance for drivers under 25. Vehicles with lots of horsepower, a lack of safety features, or a track record of large liability claims will cost much more to insure than more economical and safe models.
The list below outlines auto insurance premiums for a selection of the cheaper vehicles to insure in Minnesota.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Hyundai Elantra GLS Touring Station Wagon||$3,200|
|Honda CR-V EX 4WD||$3,246|
|Ford Escape XLT 4WD||$3,255|
|Ford F-150 XL Super Cab 4WD||$3,591|
|Honda Odyssey EX W/Rear Entertainment||$3,750|
|Chevrolet Impala LS||$3,757|
|Ford Edge SEL AWD||$3,750|
|Honda Civic DX 4-Dr Sedan||$3,760|
|Toyota RAV4 2WD||$3,797|
|Chevrolet Malibu Hybrid||$3,807|
|Dodge Grand Caravan Crew||$3,846|
|Ford Explorer Limited AWD||$3,854|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$3,846|
|Ford Focus SES 4-Dr Sedan||$3,955|
|Toyota Camry SE||$4,002|
|Nissan Altima 3.5 SR 4-Dr Sedan||$4,051|
|Volkswagen Jetta SE 4-Dr Sedan||$4,056|
|Chevrolet Equinox LTZ 2WD||$4,051|
|Toyota Corolla XRS||$4,061|
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Data based on single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Minnesota minimum liability limits. Discounts applied include claim-free, and safe-driver. Price information does not factor in zip code location which can lower or raise auto insurance rates greatly.
By looking at the data, you can figure that vehicles like the Hyundai Elantra, Honda CR-V, and Ford Escape will be some of the more affordable vehicles to insure for drivers age 25 and younger. Rates will be more costly because there is a higher risk for drivers under 25, but generally speaking those particular vehicles will have the best insurance prices compared to other vehicles.
For drivers age 25 and younger, one of the more important considerations that help determine car insurance rates is where you choose to live. Areas with high crime rates or more dense population tend to have higher auto insurance costs, whereas less populated areas can boast about having cheaper rates.
The information below ranks the most expensive areas in Minnesota for drivers under 25 in which to buy car insurance. Minneapolis is ranked at #1 with an annual rate of $2,058 on average, which is approximately $172 monthly.
|13||Saint Louis Park||$1,720|
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Rate quotes are approximated as the specific zip code location can change prices greatly.
Impact of violations and accidents on rates
The common sense way to earn cheap car insurance prices in Minneapolis for drivers age 25 and younger is to be a safe driver and not receive tickets or have accidents. The illustration below demonstrates how traffic citations and accident claims can affect auto insurance costs for different categories of driver ages. The premiums assume a married male driver, full coverage, $1,000 deductibles, and no discounts are applied.
The data above shows the average cost of car insurance per year with no accidents and a clean driving record is $1,531. Get two speeding tickets and the average cost jumps to $2,101, an increase of $571 each year. Then throw in one accident along with the two speeding tickets and the 12-month cost of car insurance for drivers under 25 goes up to an average of $2,687. That’s an increase of $1,156, or $96 per month, just for not paying attention while driving!
Buying coverage from a good quality car insurance company is hard considering how many companies there are in Minnesota. The company ratings displayed below can help you choose which companies to look at buying from. The ratings below include large nationwide companies, so companies without a large exposure are not factored into this list.
Top 10 Large Auto Insurance Companies Overall in Minneapolis
- 21st Century
- AAA Insurance
- Liberty Mutual
- Safeco Insurance
- State Farm
- American Family
Top 10 Large Auto Insurance Companies in Minneapolis Ranked by Claims Service
- Liberty Mutual
- AAA Insurance
- Safeco Insurance
- The General
Why it’s important to shop around
Minnesota car insurance rates are influenced by many factors that can increase the cost of a policy. Simply having a birthday, buying another vehicle, or getting a ticket for careless driving can trigger price changes that can cause some rates to be cheaper than before. Not only that, but companies change prices every year or even multiple times each year to adjust for heavy claims or excess profits. Higher than usual claims may result in high rates, while a better claims history can cause lower-cost Minneapolis car insurance rates.
The data below shows which companies have the cheapest car insurance in Minneapolis, MN for a 40-year-old male driver with a clear driving record, no claims, and good credit. When comparing rates based on his personal profile, Travelers may have the cheapest car insurance rates in Minneapolis at $913 a year. This is $508 less than the average rate paid by Minnesota drivers of $1,421. USAA, Farm Bureau Mutual, Western National, and The Hartford are also included in the top five cheapest Minneapolis, MN auto insurance companies.
Let’s now give the driver from the first rate comparison a claim, a lower credit score, and a traffic ticket or two. Since each insurance company has their own unique process to set their prices, comparing rates may now show a new list of affordable Minneapolis car insurance companies as shown below.
USAA now has the cheapest auto insurance in Minneapolis, MN with Allied, Farm Bureau Mutual, American Family, and State Farm completing the list. This illustrates why it is critical to perform an extensive rate comparison to get affordable car insurance rates for drivers under 25. Rates can be determined by many things and can increase or decrease at any time, so the best price when you bought your policy may now not even be in the top five.
How to find cheaper car insurance for drivers under 25
Below you’ll find a few penny-pinching ideas that can help Minnesota drivers buy lower-cost car insurance.
- Save money by only buying liability coverage for older vehicles
- Safe vehicles cost less to insure
- Serious violations like DUI or reckless driving can increase rates dramatically
- Avoid having at-fault accidents
- Higher credit ratings may save you money
- Higher deductibles mean lower rates
- Ensure you have the best deal by shopping around regularly
That last piece of advice is extremely crucial, as we stressed in the prior article. Insurance prices in Minneapolis change constantly, so don’t be unwilling to switch carriers if you can save money. Brand loyalty is not necessarily bad, but we do not recommend it if that faithfulness ends up costing you hundreds of dollars year after year. It only takes a couple minutes to shop around and find cheaper car insurance for drivers under 25.
The Minneapolis auto insurance agencies shown below are willing to answer your questions and help you decide which insurance coverage will be best for you, since some people prefer to get some professional input when trying to find lower insurance rates for drivers under 25. It can be complicated to find the cheapest rates, so professional agents can bring comfort knowing your policy gives you adequate coverage if you have an accident or claim. To locate a Minneapolis insurance agent closest to you, click the button below the list or click here to compare price quotes now.
Skarnes Agency Inc.
1845 NE Stinson Blvd – Minneapolis, MN 55418 – (612) 354-2040
Kim Nybo – State Farm Insurance Agent
2724 University Ave SE – Minneapolis, MN 55414 – (612) 767-7775
Farmers Insurance – Natalie Fox
210 N 2nd St #70 – Minneapolis, MN 55401 – (612) 208-0276
Moon Lai – State Farm Insurance Agent
2718 Nicollet Ave #204 – Minneapolis, MN 55408 – (612) 870-0800
Allstate Insurance: Ed Scislow
5208 Bloomington Ave – Minneapolis, MN 55417 – (612) 353-5410