This would be a really short article if we could simply give you the name of the exact car insurance company that is cheapest in Minnesota. Unfortunately, it’s just not that easy, as there are many unknown elements like if you just need liability coverage, the neighborhood you live in, and if you have ever let your policy lapse. Car insurance is kind of a dry topic, but this article will explain the best ways to find cheap auto insurance and hopefully give you enough understanding to have a solid foundation to find cheaper car insurance in Minnesota.
The make and model of vehicle requiring insurance is probably the biggest factor when comparing the best cheap auto insurance for drivers under 21. Vehicles with lots of speed or power, poor safety ratings, or high incidents of liability claims will cost quite a bit more to insure than safer models. The list below showcases insurance costs for a number of the most budget-friendly vehicles to buy coverage for.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Honda CR-V LX 4WD||$4,412|
|Ford Escape XLT 2WD||$4,419|
|Ford F-150 XL Crew Cab 2WD||$4,927|
|Dodge Grand Caravan CV||$4,937|
|Volkswagen Jetta SE 2.5 Station Wagon||$5,137|
|Ford Edge SEL AWD||$5,184|
|Jeep Grand Cherokee Laredo 4WD||$5,236|
|Chevrolet Equinox LS AWD||$5,246|
|Chevrolet Malibu Hybrid||$5,236|
|Toyota RAV4 2WD||$5,245|
|Ford Explorer Limited 2WD||$5,289|
|Toyota Tacoma Double Cab TRD Off-Road Package 4WD||$5,299|
|Ford Focus SES 4-Dr Sedan||$5,493|
|Toyota Camry XLE||$5,546|
|Hyundai Elantra GLS 4-Dr Sedan||$5,552|
|Nissan Altima 2.5 S 4-Dr Sedan||$5,546|
|Chevrolet Impala LTZ||$5,555|
|Honda Odyssey Touring||$5,598|
|GMC Sierra SLT Extended Cab 2WD||$5,608|
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Prices above based on single female driver age 19, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Minnesota minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium costs do not factor in garaging location in Minneapolis, MN which can revise premium rates considerably.
Looking at the numbers, you can conclude that cars like the Honda CR-V, Ford Escape, Toyota Prius, and Ford F-150 are most likely going to be the cheaper vehicles to insure for minors. The price for car insurance will tend to be more expensive because of the fact that there is more exposure for drivers under 21, but generally speaking those models will tend to have the lowest prices compared to other types of vehicles.
Figuring out which companies offer the most affordable insurance rates for drivers under 21 requires a little more sweat in order to find a policy that fits your budget. Each auto insurance company uses a little different formula to set premium rates, so we’ll go over the most affordable insurance companies in Minnesota.
It’s important that readers know that Minneapolis insurance rates are based on many factors which can significantly increase or decrease the price you have to pay. Improving your credit score, moving across town, or getting a driving violation can trigger rate changes that can make some companies more affordable than competitors.
Find the Cheapest Auto Insurance for Minors
Travelers may have some of the best car insurance rates in Minneapolis at around $641 per year. This is $780 less than the average premium paid by Minnesota drivers of $1,421. Farm Bureau Mutual, USAA, The Hartford, and Western National also qualify as some of the lowest-priced Minneapolis, MN auto insurance companies.
In the rate table above, if you are a customer of The Hartford and switched to Farm Bureau Mutual, you might realize an annual premium reduction of approximately $131. Drivers with Western National might save as much as $132 a year, and West Bend Mutual policyholders might reduce rates by $138 a year.
Remember that these prices are averaged across all insureds and vehicles and do not take into consideration a vehicle location for drivers under 21. So the car insurance company that can offer you the best price may not even be in the list above. That is why you need to get rate quotes from many companies using your own specific driver information and vehicle.
For minors, one of the largest things that aid in calculating auto insurance rates is where your residence is in Minneapolis. Areas with high crime rates or more dense population will most likely pay more, whereas areas with lower crime rates and fewer weather claims have the gratification of cheaper auto insurance rates.
The illustration below ranks the priciest cities in Minnesota for drivers under 21 to purchase car insurance in. Minneapolis comes in at #1 with an annual premium of $2,079 for the average policy, which is about $173 monthly.
|7||Saint Louis Park||$1,754|
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Rate information is comparative as specific Minneapolis zip code can modify price quotes greatly.
The information below highlights how deductible choice can influence insurance premiums when quoting cheap insurance for drivers under 21. The price estimates are based on a married female driver, full coverage, and no discounts are taken into consideration.
The chart above illustrates that a 50-year-old driver could lower rates by $218 a year by switching their comprehensive and collision coverages from a $100 deductible up to a $500 deductible, or save $330 by selecting a $1,000 deductible. Youthful drivers, such as the 20-year-old example, have the ability to save $538 or more by using a higher deductible. When using a larger deductible, it will now be necessary to have plenty of discretionary funds to pay the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
How violations and accidents impact rates
In a perfect world, the best way to receive cheap insurance prices in Minnesota for minors is to drive cautiously and avoid tickets and accidents. The information below demonstrates how speeding tickets and at-fault claims can impact premium costs for each different age category. The rate quotes are based on a single female driver, full coverage, $100 deductibles, and no policy discounts are applied.
In the prior example, the average cost of car insurance per year with no violations or accidents is $1,917. Receive two speeding tickets and the average cost increases to $2,586, an increase of $669 each year. Now get one accident along with the two speeding tickets and the 12-month cost of insurance for drivers under 21 jumps again to an average of $3,256. That’s an increase of $1,340, or $112 per month, just for not being a responsible driver!
Liability-only versus full coverage
Lowering the price of insurance is the goal of the majority of vehicle owners, and one great way to pay lower rates for insurance for drivers under 21 is to not pay for full coverage. The illustration below shows the comparison of insurance prices with and without full coverage. The rates are based on no accidents or driving violations, $1,000 deductibles, marital status is single, and no other discounts are factored in.
If averaged for all ages, physical damage coverage costs an additional $1,336 per year more than just insuring for liability. Many drivers may wonder if full coverage is worth the money. There is no set guideline for excluding physical damage insurance, but there is a broad guideline. If the annual cost of having full coverage is about 10% or more of the replacement cost of your vehicle minus the policy deductible, then it might be time to buy liability only.
There are some scenarios where removing full coverage is not in your best interest. If you still have a lienholder on your title, you are required to maintain full coverage to protect the lienholder’s interest. Also, if you cannot afford to purchase a different vehicle if your current one is damaged, you should not drop full coverage.
The Minneapolis auto insurance agencies shown below can probably help you decide which insurance coverage you need, since some drivers have questions and prefer to have professional advice when comparing insurance rates for minors. It can be complicated to find the cheapest car insurance policy, and a licensed agent can provide you comfort knowing your policy gives you suitable coverage if you have an accident. To find an agent in your neighborhood, click the link after the list or click here to compare price quotes now.
- Jerry Vang – State Farm Insurance Agent
701 4th Ave S #220 – Minneapolis, MN 55415 – (612) 338-6400
- Alisho Dependable Ins. Agency
1929 S 5th St #104 – Minneapolis, MN 55454 – (612) 354-2576
- Kelly Mulligan Allstate Insurance Agency
80 8th St S – Minneapolis, MN 55402 – (612) 713-9253
- American Family Insurance – Dawn Bartell
4649 Bloomington Ave – Minneapolis, MN 55407 – (612) 333-5554
How to find low-cost auto insurance for drivers under 21
The list below details a few thrifty suggestions that can help drivers buy more affordable coverage.
- Bundle home and auto and save
- Do not get traffic citations
- On older vehicles, drop full coverage
- Maintain a safe distance and avoid accidents
- Safe vehicles generally have lower rates
- Discounts for being claim-free can be substantial
- Shop around and save
That last idea is certainly critical, as we emphasized in the article above. Prices charged by car insurance companies change constantly, so don’t hesitate to buy from a new company if you find a cheaper price. Being loyal to a particular company is commendable, but we do not recommend it if that inflexibility results in costing you a small fortune. Take a few minutes and shop around to find cheaper car insurance for drivers under 21 in Minneapolis.