What Most People Get Wrong About This
The usual line: the way to get cheap car insurance is to find the company with the lowest price and buy the least coverage the state allows.
What's actually true: the price you're quoted is built from choices, and most of the biggest ones are yours. Two drivers on the same street, with the same car and the same carrier, can pay very different premiums because of their deductibles, the discounts they asked for, their credit-based insurance score, and whether they shopped at renewal. Minnesota law even requires some discounts that drivers routinely leave on the table. Cutting coverage is the lever most likely to cost you far more than it saved once something goes wrong.
What to do instead: work the levers in order: discounts first, deductibles second, re-shopping third. Leave liability, uninsured and underinsured motorist coverage, PIP and (for most drivers) comprehensive alone.
Your renewal came in higher again, and you're wondering what you can actually do about it. You're not imagining the trend: the Federal Reserve Bank of Minneapolis found Minnesota premiums rose about 29% between 2022 and 2024, using NAIC data. Our complete Minnesota car insurance guide covers what the law requires and why rates climbed. This article goes one level deeper on a single question: how to bring your premium down without opening a gap you'd only discover after a crash. We'll walk through deductibles with real arithmetic, the discounts Minnesota statutes require, how credit and your record are allowed to count, when dropping collision makes sense, and why renewal is the best time to shop.
- 55+ driver course
- 4 hoursClassroom or online · Minn. Stat. 65B.28
- Anti-theft credit
- RequiredOn comprehensive · 65B.285
- Credit re-score
- On requestUp to twice a year · 72A.20
- MN premiums 2022–24
- +29%NAIC data via Minneapolis Fed
How much does raising your deductible really save you?
Short answerIt depends on your quote, so ask for prices at two or three deductible levels and divide the extra out-of-pocket risk by the yearly premium difference to see how many claim-free years it takes to come out ahead.
Your deductible is what you pay on a collision or comprehensive claim before the insurer pays the rest. Raising it shifts a slice of risk from the insurer back to you, so the premium for those two coverages drops. How much it drops varies by carrier, car and driver, which is why we never quote a typical savings figure. What you can do is run the break-even math on your own numbers.
The table below is illustrative arithmetic, not a quote. It shows how much cheaper the premium would need to be at each level for the higher deductible to pay for itself in three claim-free years, measured against a $500 deductible.
| Collision deductible | You pay on one claim | Extra risk vs. $500 | Yearly premium drop needed to break even in 3 years |
|---|---|---|---|
| $500 | $500 | None (the baseline) | Not applicable |
| $1,000 | $1,000 | $500 | About $167 a year |
| $1,500 | $1,500 | $1,000 | About $333 a year |
| $2,000 | $2,000 | $1,500 | $500 a year |
If your quote shows a bigger drop than the last column, the higher deductible is working for you, as long as you'd pay it without a credit card. If it shows a smaller drop, you're taking on risk for very little. And if you file a claim every couple of years, the math rarely favors a high deductible at all.
Collision and comprehensive don't have to match
Most policies let you set the two deductibles separately, and in Minnesota that matters. Comprehensive is the coverage that pays for hitting a deer, hail, theft and cracked glass, losses that are common in a Minnesota year. Collision covers the slide into a guardrail or another car. Many drivers keep a moderate comprehensive deductible and raise the collision one first.
Which car insurance discounts can Minnesota drivers ask for?
Short answerThree are written into Minnesota law (the 55+ accident prevention course, factory anti-theft devices and technical-college student eligibility), and the rest, like bundling, multi-car and good student, vary by carrier and are worth asking about by name.
Most discount lists online are generic. In Minnesota, a few discounts aren't a carrier's choice at all. They're required by statute, and they're easy to miss.
Accident prevention course
Complete a DPS-approved course and the insurer must apply a premium reduction (Minn. Stat. 65B.28). Retake it or a refresher every three years to keep it.
Factory anti-theft device
A qualifying alarm or immobilizer installed by the manufacturer or its dealer earns a reduction on comprehensive (65B.285).
Technical college eligibility
If a carrier gives a student discount to college and university students, it must offer it to technical college students too (65B.132).
Multi-policy (bundling)
Many carriers discount auto when your home, condo or renters policy is with them too.
Multi-car and good student
Common for households with several cars, and for young drivers with strong grades. Ask what proof the carrier needs.
Pay in full, autopay, paperless
Some carriers price these differently, and installment plans can carry fees. Ask how each option changes the total for the term.
The 55+ course: what the statute actually says
Under Minn. Stat. 65B.28, an insurer must give "an appropriate premium reduction of at least ten percent" on private passenger auto policies to insureds 55 and older who complete an approved accident prevention course. In plain English: take the class, send your insurer the certificate, and the law requires a credit. Ten percent is the legal floor, not a promised dollar amount, and the statute doesn't spell out which coverages the reduction applies to, so ask your insurer how it's calculated on your policy.
The course rules changed in 2024. A 2024 law set the course at four hours total for classes held on or after July 1, 2024, and the Department of Public Safety's list of approved accident prevention courses includes both four-hour classroom and four-hour online options. To stay eligible, you retake the course or a refresher every three years, and a driver 58 or older whose certificate lapsed can regain eligibility by completing a course again.
The anti-theft credit is narrower than people think
Minn. Stat. 65B.285 sets a legal minimum reduction of five percent, but only on the comprehensive portion of the premium, and only for devices that came as original equipment or were installed by the manufacturer or its authorized dealer. The device has to arm itself when the doors lock and then sound an alarm, honk the horn, flash the lights or disable the car. An aftermarket alarm from a car-audio shop isn't named in the statute. If your car came with one from the factory, check that it's listed on your policy.
Bundling, telematics and the rest
Bundling is worth checking first if you own or rent your home. If your home insurance is with a different company, it's worth pricing both together, and our Minnesota homeowners insurance guide covers what to check on the home side so a cheaper bundle doesn't hide a thinner home policy. Renters can often bundle too.
Usage-based or telematics programs, where offered, price your policy partly on how and how much you drive. They can suit a low-mileage driver who rarely drives late at night. Before you enroll, ask two questions: can the program raise your rate as well as lower it, and what data does the app or device collect?
How are your credit and driving record allowed to affect your Minnesota premium?
Short answerBoth can count, but Minnesota law sets guardrails: you can ask to be re-scored, shopping for quotes can't hurt your insurance score, and a past period without a car generally can't be held against you.
Minnesota allows insurers to use credit-based insurance scores, with limits. Under Minn. Stat. 72A.20 subd. 36, insurers must "upon the request of a policyholder reevaluate the policyholder's score," and any premium change from that re-score takes effect at renewal. They don't have to do it more than twice a calendar year. If your credit has improved since you bought the policy, that request costs nothing.
Three more protections in the same statute are worth knowing:
- Shopping doesn't count against you. Subd. 36 says insurance inquiries and inquiries you didn't start "must not be used as part of the credit scoring or insurance scoring process." Getting several quotes at renewal won't count against your insurance score.
- Hardship exceptions exist, if you ask. On request, insurers must provide reasonable underwriting exceptions when your credit history was unduly affected by expenses related to a catastrophic injury or illness, a temporary job loss, or the death of an immediate family member. They may ask for documentation.
- A carless stretch isn't a black mark. Under subd. 23, an auto insurer can't use the fact that you had no policy in force before you applied as an underwriting standard, or deny you coverage for it, unless you were required by law to carry insurance and didn't. That helps someone who sold a car, lived without one, or moved here from overseas. The insurer may ask for reasonable proof.
Your driving record is the other half. How long an accident or ticket affects your price is set by the insurer's surcharge plan, which it must disclose before accepting your first premium (Minn. Stat. 65B.133), and Minnesota's nonrenewal rules look back three years from a chargeable accident. Subd. 23 also bars insurers from using PIP claims you were paid as an underwriting standard when you were 50% or less at fault in the crash. The practical takeaway: a clean three years is worth protecting, and it's a good moment to re-shop.
When does it make sense to drop collision, and does the car you buy matter?
Short answerDropping collision can make sense on a paid-off car worth little that you could replace from savings, never on a financed or leased car, and the car you choose next shapes your premium before you ever sign.
Collision is often one of the larger line items on an older car, and it pays out no more than the car is worth, minus your deductible. Here's a simple test we use with clients: add a year of collision premium to your collision deductible, then compare that to what the car is actually worth today. If the two numbers are close, the coverage is buying very little. If losing the car tomorrow would leave you unable to get to work, keep it.
Comprehensive is a different decision. It typically costs less than collision, and in a state with this many deer and this much hail, it's usually the last physical damage coverage we'd suggest cutting. Our guide to deer collisions and Minnesota car insurance explains why that one coverage carries so much weight here.
Price the insurance before you buy the car
The car you pick sets a floor under your premium. The Minneapolis Fed found that Minnesota repair costs rose faster than the national average in 2021 and 2022, and cameras, sensors and specialty parts make even minor body work expensive. Theft history matters too: Minneapolis drivers learned that the hard way with certain Kia and Hyundai models, which we cover in car insurance in Minneapolis. Before you sign, send us the VIN of the car you're considering and we'll price it next to your current one.
Which coverages should you never cut to save money in Minnesota?
Short answerLiability sized to what you own, uninsured and underinsured motorist coverage, no-fault PIP and, for most drivers, comprehensive, because each one protects against a loss far bigger than the premium you'd save.
There's smart-cheap and there's cheap that's just risk you haven't paid for yet. These are the lines we'd leave alone, even when the budget is tight:
| Coverage | Why cutting it backfires | Our take |
|---|---|---|
| Liability | The 30/60/10 minimum (Minn. Stat. 65B.49) can be exhausted by one serious crash, and the rest can come after your savings and home equity. | Don't cut |
| UM / UIM | Required at 25/50, and insurers don't have to sell you more than your liability limit. It pays for your injuries when the other driver can't. | Don't cut |
| No-fault PIP | Required at $40,000 per person (65B.44). There's no legal way to drop it, and driving without required coverage is a misdemeanor. | Can't cut |
| Comprehensive | Pays for deer, hail, theft and glass, all common losses in Minnesota. | Keep for most |
| Collision on an old, paid-off car | May cost more over a few years than the car would pay out. | Fair to review |
Liability is where we'd push back hardest. Minnesota's no-fault system pays your own injury bills first, but once the other person's medical expenses pass $4,000, or the injury results in permanent disfigurement, permanent injury, death or disability for 60 days or more (Minn. Stat. 65B.51), they can sue the driver who caused it, and that claim lands on your liability limit. The sizing section of our Minnesota guide walks through how to choose a limit. If you raise liability, bring UM/UIM up with it, since Minnesota doesn't let you stack UM/UIM limits across cars.
Comprehensive did more than any other coverage to drive Minnesota's recent increases, according to the Minneapolis Fed's May 2026 analysis, followed by collision. That's a sign of how much it has been paying out here, not a reason to drop it.
Is renewal the right time to re-shop Minnesota car insurance in 2026?
Short answerYes, because the Minneapolis Fed wrote in May 2026 that premiums are heading down but insurers may not cut rates right away, so comparing at renewal is how you find out whether your price has caught up.
Here's what changed. After two years of steep increases, the Federal Reserve Bank of Minneapolis wrote that "premiums are on their way down, including in Minnesota." It also noted that as premiums surged, "consumers have been shopping around more," and that insurers "may not decrease rates right away even when forecasts allow them to." Put plainly: a falling market doesn't lower your renewal on its own. Comparing does.
A good re-shop takes one conversation if you come prepared:
- Start 30 days before renewal. That leaves time to compare without rushing into a lapse.
- Bring your declarations page. It's the only way to compare at identical limits and deductibles, so a lower price isn't just less coverage. Our Minnesota car insurance quote checklist lists everything else to have ready.
- Ask for two versions. One that matches what you have today, and one with the discounts and deductibles from this article applied.
- Ask for a re-score if your credit has improved, and mention any 55+ course certificate or factory anti-theft system.
- Never let it lapse. Start the new policy the day the old one ends.
When you compare with us, we start with Farmers and, when Farmers isn't the right fit for your household, can look at additional carriers available to us. We offer a free coverage review before your renewal — just ask, or we'll reach out. South-metro drivers can also read our Eagan car insurance guide for Dakota County crash data and winter parking rules. Call (651) 252-6655 or request a quote online.
The Bottom Line
Cheap car insurance in Minnesota isn't a company or a trick. It's the result of working the right levers in the right order. Ask for every discount you may qualify for, starting with the ones state law requires: the 55+ accident prevention course and a factory anti-theft system. Set your deductibles at amounts you could pay tomorrow, and run the break-even math before you raise them. Ask for a credit re-score if your finances have improved, and re-shop at renewal, because a falling market won't lower your price on its own.
Then leave the protective coverage alone. Liability sized to what you own, UM/UIM to match, PIP because the law requires it, and comprehensive because Minnesota has deer and hail. The few dollars you'd save cutting those are the most expensive dollars in your budget the day you need them.
For how we put Minnesota auto policies together, see our auto insurance page. If you're ready to compare your options with a local agent, we're in Eagan and happy to help.
Related Questions Minnesota Drivers Ask
Do Minnesota drivers 55 and older get a discount for taking a driving course?
Yes. Under Minn. Stat. 65B.28, insurers must give a premium reduction of at least ten percent (a legal minimum, so ask how your insurer applies it) on private passenger auto policies to drivers 55 and older who complete an accident prevention course approved by the Department of Public Safety. Since July 1, 2024, the course is four hours, and DPS lists approved classroom and online providers. To stay eligible, you retake the course or a refresher every three years and give your insurer the completion certificate.
Does Minnesota require a car insurance discount for a factory anti-theft system?
Yes, for qualifying devices. Minn. Stat. 65B.285 requires a premium reduction of at least five percent on comprehensive coverage when the vehicle has an anti-theft device installed as original equipment or by the manufacturer's authorized dealer, which activates automatically when the doors lock and sounds an alarm, honks the horn, flashes the lights or disables the car. The reduction applies to the comprehensive portion of the premium, not the whole policy, and aftermarket devices aren't named in the statute.
Will getting several car insurance quotes hurt my credit-based insurance score in Minnesota?
No. Minn. Stat. 72A.20 subd. 36 says insurance inquiries and inquiries you didn't initiate must not be used as part of credit or insurance scoring. The same law lets you ask your insurer to re-score you, with any premium change taking effect at renewal, and insurers don't have to do it more than twice a calendar year.
Can a Minnesota insurer hold it against me that I went a few years without a car?
Generally not. Under Minn. Stat. 72A.20 subd. 23, an auto insurer can't use the fact that you had no policy in force before you applied as an underwriting standard, or deny coverage for it, unless you were required by law to carry insurance during that time and didn't. The insurer may ask for reasonable proof and must tell you what documentation it needs.
Should I drop collision coverage on a paid-off car in Minnesota?
Sometimes. If the car is paid off, worth little, and you could replace it from savings, a year of collision premium plus your deductible may buy very little protection. If the car is financed or leased, your lender may require collision and comprehensive, so dropping it can breach the loan. Comprehensive usually costs less and pays for deer hits and hail, so it's typically the last physical damage coverage we'd suggest cutting.
Is it better to raise my collision deductible or my comprehensive deductible in Minnesota?
Often the collision deductible first. Comprehensive pays for deer, hail, theft and glass, all common losses in Minnesota, and under Minnesota rules an insurer can raise your comprehensive deductible after three comprehensive payments in three years or two in twelve months. Pick deductibles you could pay tomorrow, and ask for quotes at each level so you can see the actual price difference.
Last reviewed by Ryan Block, licensed Minnesota insurance agent, on October 20, 2026. Minnesota statutes cited (65B.28, 65B.285, 65B.132, 65B.133, 65B.44, 65B.49, 65B.51, 169.797 and 72A.20 subds. 23 and 36), Minn. R. 2770.7700 and 2770.7800, and Laws 2024 c. 104 were checked against revisor.mn.gov on that date, along with the Department of Public Safety's approved accident prevention course list and the Department of Commerce's auto insurance basics page. Premium trends come from the Federal Reserve Bank of Minneapolis (May 2026), using NAIC data. The deductible table is illustrative arithmetic, not a quote. This guide is general information, not a substitute for reading your own policy. Coverage depends on your specific contract, and not all coverages and discounts are available from every insurer.