How to Lower Your Auto Insurance Premium in Minnesota

Auto insurance premiums in Minnesota have moved up over the past few years — more accidents, higher repair costs, more expensive vehicles. When clients call about their renewal and the number is higher than last year, they want to know what they can do. Some of the levers that actually move the number, and some that don't matter as much as people think.

Raise Your Deductible

This is the single highest-impact change most people haven't made. The collision and comprehensive portions of your premium are directly tied to your deductible — the amount you pay out of pocket before insurance covers the rest.

Moving from a $500 to a $1,000 deductible typically reduces your collision and comprehensive premium by 10–20%. Moving to $2,500 can reduce it 20–30%. On a household with two or three vehicles, that's a meaningful annual savings.

The tradeoff is straightforward: you're absorbing more of a loss before coverage applies. But consider the math: if you save $300/year raising your deductible from $1,000 to $2,500, you'd recover the extra $1,500 in out-of-pocket exposure in five years of no claims — and every year after that is pure savings. Most people who raise their deductible and have a claim still come out ahead over a multi-year horizon compared to paying higher premiums for a lower deductible.

Remove Coverages You're Already Paying for Elsewhere

Roadside assistance

Roadside assistance through your auto policy is typically $3–$8/month per vehicle. If you have AAA, a credit card with roadside coverage, or a manufacturer's included plan — Ford, GM, Toyota, and others include it in new vehicles — you're paying for the same service twice. Check what you already have before keeping the auto policy version.

Rental car reimbursement

Rental reimbursement pays for a rental car while yours is being repaired after a covered claim. It's typically $5–$10/month. Worth keeping if you'd genuinely need a rental and have no alternative. Worth removing if you have another household vehicle, a workplace benefit, or another way to get around during a short repair period.

Neither of these is expensive, and if you'd use them, keep them. But they're worth reviewing deliberately rather than just leaving on because they've always been there.

Bundle Home and Auto

Bundling your homeowners and auto with the same carrier typically produces a 10–15% discount on each policy. On a combined annual premium in the $3,000–$4,000 range, that's $300–$600/year — one of the larger savings levers available without changing your coverage.

The important caveat: bundling only produces savings if the carrier is competitive on both products. Bundling with a carrier that isn't the right fit for your home or auto situation doesn't always help. An independent agent can check whether bundling with your current carrier, switching both products to a better carrier, or keeping them separate produces the best overall outcome.

Telematics — Usage-Based Insurance

Most major carriers now offer telematics programs that monitor your driving behavior through a smartphone app or a plug-in device. The program tracks braking, acceleration, speed, time of day, and phone use. Safe drivers typically earn 10–25% discounts.

There's a downside worth naming: if the program determines you're a riskier driver than your rating suggests, some carriers can increase your rate. For drivers who are genuinely careful — smooth braking, no late-night driving, limited phone use — telematics is one of the highest-return discounts available. For drivers who aren't sure, it's worth asking your agent how the specific program works before enrolling.

55+ Defensive Driving Course

This is the discount most older drivers in Minnesota don't know exists. Drivers 55 and older who complete an approved defensive driving course — the AARP SmartDriver course is the most common — qualify for a discount with most carriers in Minnesota. The course is available online and takes about 4 hours. In Minnesota, the discount is mandated at 10% and lasts three years. Renewal is a 4-hour refresher course every three years — not a full course over again.

The savings vary by carrier but typically run 5–10% on the premium. For a household with two older drivers and multiple vehicles, that's a real number for a relatively modest time investment. If you're 55 or older and haven't done this, call your agent and ask whether your carrier honors it.

Good Student and Driver Training Discounts

If you have a teen driver on the policy, a B average or better qualifies for a good student discount at most carriers — typically 5–15% off the teen's portion. Driver's education course completion also produces a discount. Both are worth confirming are applied on your current policy.

Shop the Market

Carrier pricing for the same risk varies significantly. Two carriers can look at the same driver, the same vehicles, and the same history and produce premiums that differ by 20–40%. The difference comes from how each carrier's actuarial models weight different risk factors.

This is the structural advantage of working with an independent agent: we can run your profile through multiple carriers and show you where you actually stand in the market, rather than telling you what one company says. If you're with a captive carrier — State Farm, Allstate, Farmers — your agent can only show you their rates. We can show you several and help you make an informed decision.