Cheap auto insurance for teenagers in Minnesota

All drivers in the state of Minnesota must have the minimum mandatory auto liability insurance. This law includes your teenage driver. You must carry $30,000.00 for each individual injured or killed in an accident, $60,000.00 for all the people involved in the accident, and $10,000.00 to cover all property damages. They must also have uninsured/underinsured motorists bodily injury of $30,000.00/$60,000.00 for each form of coverage. Minnesota also requires you to carry PIP coverage of $40,000.00 per person per accident, $20,000.00 for hospital and medical expenses, and $20,000.00 for lost wages, and replacement services. Since statistics show that the first year behind the wheel of a car is the prime time for teenage automobile accidents, your insurance company may recommend that you carry comprehensive and collision on your teen as well as raising the limits on your liability insurance and uninsured/underinsured to more than the state requirements.

As the parent, you are required by the state of Minnesota to take financial responsibility for your teenage driver. Your teen driver must carry their proof of insurance in the vehicle at all times. You must produce proof of insurance upon request by the authorities. In Minnesota, the proper proof of insurance includes insurance identification cards, a written statement from the insurance company itself, or a copy of the current insurance policy. Information supplied to the DMV by the insurance company will include the name of the insurance company, the dates of coverage, and the amount of liability coverage. It also needs to include the policy number, VIN number of the vehicles covered, the make and model of the vehicles as well as the name of the policy holder. The auto insurance needs to be authorized by a qualified auto insurance company. Even if the teen is not at fault for an accident, they must provide proof of insurance to the officer on the scene. They must also have proof of insurance for any regular traffic stop. If they do not have the proper proof of insurance they may have to pay a fine of $250.00 to $1,000.00 as well as a possible loss of their driver’s license and vehicle registration. They may also receive a 90 day jail sentence.

Adding your teen to your policy will generally be less expensive than putting them on their own auto insurance policy. Even then, the cost of adding your teen to your insurance policy will raise your premiums from $1200.00 to $4900.00 per year. On average, the premium will raise approximately $2,171.00 per year.

For each successive year that your teen maintains a good driving record, the premiums will most likely go down. To maintain a good driving record, your teen cannot have any traffic violations or accidents on their driving record. They cannot be picked up for a DUI or talking on their cell phone. Safety devices such as anti-lock brakes side air bags, automatic seat belts and daytime running lights may also reduce your premiums.

In addition to a clean driving record, teens who maintain a “B” grade point average will also receive a discount on insurance premiums. Another discount available for teens will be given when the teen has successfully completed a state approved safe driving course. The type of car your teen drives will also affect your insurance premiums. Don’t put your teen in a luxury car or sports car. It may also help lower your premiums if you avoid the top 10 stolen cars in the state of Minnesota. These cars include:

1. 1995 Honda Civic
2. 1991 Toyota Camry
3. 1989 Oldsmobile Cutlass
4. 1994 Honda Accord
5. 1996 Chevrolet Blazer
6. 1992 Buick Century
7. 1993 Saturn SL
8. 1992 Dodge Caravan
9. 1996 Ford Explorer
10. 1994 Chevrolet C/K 1500 Pickup (full size)


Following these guidelines will save you between 10 to 15% on your auto insurance premiums for your teenage driver.