Minnesota Car Insurance Hikes Could Hit Drivers Hard This Year

Minnesotans should brace themselves for possible sticker shock when it comes to your car insurance costs as we go into the end of the year. Depending on how long we see tariff costs for certain materials and items we get from other countries, which includes things like auto parts, your car insurance costs will most likely rise. A recent study into how much they might go up nationwide has Minnesota in the top 10 for increases by the end of the year. So how much could we see our car insurance actually go up?

Why Would Tariffs Increase My Car Insurance Payment?

Certain tariff's that have been put in place, which are paid by the companies importing the goods, which are often passed along to the consumers, are causing the cost of auto parts to go up. So when you get into an accident, or hit a deer, it's going to be more expensive for your insurer to get your car put back together again.

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Add in the fact that inflation has remained, we are seeing a double whammy to our insurance costs as the costs for those same parts, are also costing more. Minnesota's rates are projected to be possibly some of the highest increases by the end of the year, causing more sticker shock when it comes time to renew your policy.

How Much Of A Possible Increase Is Being Projected.

Insurify.com has crunched the numbers and according to their data, the average price for car insurance in June of 2025 was $2,345. By the end of the year, thanks to tariffs and inflation the average cost for car insurance in Minnesota is expected to increase 5% to be $2,455. That's one of the fastest increases in the country!

Only 4 other states are increasing faster, with those states being:

• Florida (+7%)
• Wyoming (+6%)
• Arkansas (+6%)
• New York (+6%)

Are There Ways To Save On My Car Insurance Even With A Possible Increase?

The good news for drivers in Minnesota, and across the country, many insurance agency's will offer discounts for bundling your insurance, you could also raise your deductible which would lower the insurance providers costs, or use a insurance comparison tool/website to see if another provider can get you a better rate.

The best way to save is by being a safe driver, and avoiding things like car accidents, speeding tickets, and other moving violations that can affect how much you pay for insurance.

If you are interested to learn more about the possible increases, or what other states are seeing in terms of projected costs by the end of the year, you can see the full report, here.