📊 Minnesota at a Glance
Avg Annual Premium
$1,950
full coverage
National Ranking
#17
cheapest
vs National Avg
-$747
below avg
Uninsured Rate
9.9%
below avg!
ℹ️ Minnesota is a No-Fault State
Your own insurance pays your medical bills regardless of who caused the accident. Minnesota requires $40,000 in PIP coverage—one of the highest PIP requirements in the country. This ensures quick medical payment but means higher base premiums.
📋 Minnesota Minimum Coverage Requirements
| Coverage Type | Minimum Required |
|---|---|
| Bodily Injury (per person) | $30,000 |
| Bodily Injury (per accident) | $60,000 |
| Property Damage | $10,000 |
| PIP (Personal Injury Protection) | Required: $40,000 |
| Uninsured/Underinsured Motorist | Required: $25,000/$50,000 |
⚠️ Note: The $10,000 property damage limit is low. Consider increasing to at least $50,000.
🏥 How Minnesota's $40,000 PIP Works
Minnesota's PIP is split into two parts:
$20,000 Medical
- • Hospital and medical expenses
- • Rehabilitation costs
- • Pays regardless of fault
$20,000 Non-Medical
- • Lost wages
- • Essential services (childcare, etc.)
- • Funeral expenses up to $2,000
📚 Stacking: Double Your Coverage
Minnesota allows "stacking" of UM/UIM coverage!
If you insure multiple vehicles, you can combine (stack) the UM/UIM limits across them. Example: Two cars with $50,000 UM each = $100,000 total protection.
This is a consumer-friendly provision that insurers often lobby against. Take advantage of it!
💳 Credit Score: Massive Impact
⚠️ Minnesota has one of the steepest credit penalties in the nation.
Drivers with poor credit pay up to 172% more than those with excellent credit—among the highest disparities in the country. Improving your credit score could save you thousands.
💰 Cheapest & Most Expensive Cities
✓ Cheapest Cities
✗ Most Expensive Cities
🏆 Best Insurance Companies in Minnesota
| Insurer | Best For |
|---|---|
| State Farm | Major presence, bundling |
| GEICO | Good drivers (often cheapest) |
| American Family | Strong Midwest presence |
| Progressive | Drivers with violations |
| USAA | Military (if eligible) |
💡 Tips for Minnesota Drivers
- ✓ Improve your credit score - 172% penalty for poor credit is massive
- ✓ Use stacking - Multi-vehicle households can double UM/UIM coverage
- ✓ Increase property damage - $10K is dangerously low
- ✓ Winter prep - Comprehensive covers ice/snow damage
- ✓ Use MN Commerce Dept - mn.gov/commerce for complaints and help
The Bottom Line
Minnesota has good rates ($1,950/year, 17th cheapest) and strong consumer protections—$40,000 PIP, stacking allowed, and a low 9.9% uninsured rate. But beware the 172% credit score penalty—one of the harshest in the nation.
Best strategy: Focus on improving your credit score before shopping—it's the biggest rate factor. Take advantage of stacking if you have multiple vehicles. Increase the $10K property damage minimum to at least $50K.