One of the more important things that help determine the price you pay for insurance is where you keep your vehicle in Minneapolis. Areas with more people or even just a higher incidence of claims tend to have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates have the gratification of cheaper auto insurance rates.
The next table sorts the most expensive areas in Minnesota for 20 year old guys to purchase car insurance in. Minneapolis shows up at #3 costing $1,997 for the average policyholder, which is about $166 each month.
|Rank||City||Average Per Year|
|16||Saint Louis Park||$1,720|
|Find Cheaper Insurance Go|
Premium costs are approximated as the specific zip code location can change premium rates noticeably.
Finding decent, low-priced auto insurance is not the easiest thing to accomplish, and deciding which company has the best auto insurance rates for 20 year old guys requires a bit more work.
Every insurance company has a different process to determine premium rates, so we’ll take a look at the lowest cost auto insurance companies in Minneapolis, MN.
Compare Cheap Insurance Quotes for Men Age 20
|Rank||Company||Cost Per Year|
|3||Farm Bureau Mutual||$837|
|6||West Bend Mutual||$981|
|13||Auto Club Group||$1,352|
|View More Rates Go|
Travelers quotes some of the lowest car insurance rates in Minneapolis at around $641 each year. This is $780 less than the average policy premium paid by Minnesota drivers of $1,421. USAA, Farm Bureau Mutual, Western National, and The Hartford would also make the list of some of the best Minneapolis, MN auto insurance companies.
In the above rates, if you are currently insured with Western National and switched to Travelers, you may see an annual premium reduction of in the vicinity of $269. Minnesota drivers with The Hartford could save as much as $323 a year, and West Bend Mutual policyholders might reduce prices by as much as $340 a year.
Be aware that those premiums are averages across all types of insureds and vehicles and and are not calculated with an exact location for 20 year old guys. So the car insurance company that fits your situation best may not even be in the top 24 companies shown above. That affirms the importance of why you need to get auto insurance quotes using your own personalized driver profile and vehicle information.
Accidents and violations increase rates
The easiest method to earn the best auto insurance premiums in Minneapolis for young men is to be a cautious driver and not get tickets or have accidents. The diagram below shows how violations and at-fault fender-benders can drive up auto insurance costs for each age group. The data assumes a married female driver, full physical damage coverage, $1,000 deductibles, and no other discounts are factored in.
In the prior example, the average cost of car insurance in Minnesota per year with a clean driving record and no accidents is $1,380. Factor in two speeding tickets and the average cost increases to $1,951, an increase of $571 each year. Now throw in one accident along with the two speeding tickets and the annual cost of auto insurance for 20 year old guys goes up to an average of $2,536. That’s an increase of $1,156, or $96 per month, just for a couple of infractions!
Cost of full coverage in Minneapolis
Reducing the cost of auto insurance is important to the majority of drivers, and one way to pay less for insurance for 20 year old guys is to not buy comprehensive and collision coverage. The chart below shows the comparison of car insurance rates with full physical damage coverage compared to only buying liability only. The rates are based on no claims or violations, $1,000 deductibles, marital status is single, and no policy discounts are applied.
If all age groups are averaged, physical damage coverage costs an extra $1,445 per year over liability only. At some point, almost every driver questions if buying full coverage is worth the expense. There is no set rule for eliminating full coverage, but there is a guideline you can use. If the yearly cost of full coverage is more than around 10% of the vehicle’s replacement cost less your deductible, then you may need to consider dropping full coverage.
Get discount Minneapolis car insurance rates
Car insurance companies that offer cheap quotes for 20 year old guys may additionally offer special discounts that could reduce prices by 30% or more if you meet specific eligibility requirements. A few of the larger companies and some of their more popular discounts are:
- GEICO has savings for federal employee, multi-vehicle, driver training, five-year accident-free, anti-lock brakes, and anti-theft.
- Auto-Owners Insurance offers premium reductions for anti-theft, anti-lock brakes, multi-policy, paid in full, group or association, student away at school, and teen driver.
- American Family includes discounts for mySafetyValet, bundled insurance, Steer into Savings, defensive driver, TimeAway discount, good driver, and multi-vehicle.
- Esurance may include discounts for good student, anti-theft, online quote, anti-lock brakes, and good driver.
- Progressive discounts include multi-policy, continuous coverage, good student, multi-vehicle, online quote discount, online signing, and homeowner.
- State Farm offers discounts including safe vehicle, good driver, anti-theft, good student, Steer Clear safe driver discount, and passive restraint.
- AAA has discounts for multi-car, good driver, AAA membership discount, anti-theft, and good student.
The chart below visualizes the comparison of auto insurance costs with and without discounts being applied to the rates. The costs are based on a male driver, no accidents, no driving violations, Minnesota state minimum liability limits, comp and collision included, and $500 deductibles. The first bar for each age group shows the price with no discounts. The lower bar shows the rates with good student, vehicle safety, paid-in-full, continuous coverage, anti-theft, and passive restraint discounts applied. When these discounts are applied to the policy premium, the average amount saved each year on auto insurance for 20 year old guys is 18% or $303.
Why you should be shopping around
Minneapolis, MN auto insurance rates are based on many factors which can significantly increase or decrease the price you pay for coverage. Improving your credit rating, buying a home instead of renting, or getting a driving violation can trigger price changes that may make certain companies cheaper than others.
In addition, insurers modify pricing as needed to adjust for heavy claims or excess profits. Unexpectedly high claims can result in rate hikes, while profitable underwriting can cause lower-priced Minneapolis car insurance rates.
The chart below shows the companies that have the cheapest car insurance in Minneapolis, MN for a 30-year-old female driver with a good driving record, no prior claims, and excellent credit. When quoting prices based on her current situation, Travelers might quote the lowest car insurance rates in Minneapolis at $851 a year. This is $570 less than the average rate paid by Minnesota drivers of $1,421. Farm Bureau Mutual, USAA, Western National, and The Hartford also make the list of the cheapest Minneapolis, MN auto insurance companies.
In the next rate comparison, we’ll give the driver from the first rate comparison a claim surcharge, a lower credit rating, and a few blemishes on her driving record. Since every insurance provider has a unique approach for filing rates in each state, comparing insurance quotes could result in a different ranking of cheap Minneapolis auto insurance companies as shown below.
Farm Bureau Mutual now has the cheapest auto insurance in Minneapolis with Allied, USAA, State Farm, and Travelers also being competitive. This example demonstrates why consumers need to take the time to shop around when trying to find the most budget-friendly auto insurance rates for 20 year old guys. Rates consist of many things and change dramatically, so the best price six months ago may now not even be in the top five.