Updated March 2026
State Requirements
Minnesota requires minimum liability coverage of 30/60/10: $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $10,000 for property damage. The state operates a three-stage graduated licensing system: teens can obtain a learner's permit at 15, advance to an intermediate license at 16 after completing 30 hours of supervised driving (including 10 hours at night), and earn a full license at 17 after 12 months violation-free intermediate driving. Minnesota Statute 65B.28 mandates that insurers offer good student discounts to students under age 25 who maintain a B average or equivalent, making this one of the few states where the discount is legally required rather than carrier-discretionary.
Cost Overview
Teen driver insurance in Minnesota is priced primarily on crash and violation statistics: drivers under 20 have crash rates roughly 3–4 times higher than drivers over 25, and Minnesota insurers price accordingly. Rates vary significantly by whether the teen holds a learner's permit (supervised driving only), an intermediate license (with passenger and nighttime restrictions), or a full license, and by whether they're added to a parent's multi-vehicle policy or obtaining standalone coverage.
What Affects Your Rate
- Good student discount (legally mandated in Minnesota under Statute 65B.28): Teens maintaining a B average or 3.0 GPA can reduce their premium by 10–20%, typically saving $25–$60 per month. Insurers must verify grades annually through report cards or transcripts.
- Telematics programs (available from most major carriers in Minnesota): Usage-based insurance monitors braking, acceleration, speed, and nighttime driving via smartphone app or plug-in device. Safe teen drivers can earn discounts of 10–25%, though parents should note that risky driving patterns can also prevent discounts or increase rates at renewal.
- Vehicle type and age: Insuring a teen on a 2010 Honda Civic with modern safety features costs substantially less than a 2015 sports sedan or SUV. Vehicles with high safety ratings, low theft rates, and lower repair costs can reduce the teen driver premium increase by 15–30% in Minnesota. Many parents buy an older, reliable sedan specifically to minimize insurance costs during the high-rate teen years.
- Driver training completion: Minnesota teens who complete a state-approved driver education course (required for licensing before age 18) may qualify for driver training discounts of 5–15% from most insurers. The course includes 30 hours of classroom instruction and 6 hours behind-the-wheel training, and some insurers require proof of completion to offer the discount.
- Intermediate license restrictions compliance: Minnesota's intermediate license prohibits more than one non-family passenger under 20 for the first six months, and no driving between midnight and 5 a.m. unless for work, school, or emergencies. Violations can result in license suspension and significant rate increases. Parents should verify that their insurer is aware of the license stage, as some offer modest discounts during the restricted intermediate period.
- Add-to-policy vs separate policy decision: Adding a teen to a parent's existing Minnesota policy is almost always cheaper than a standalone teen policy—often 40–60% less expensive. A standalone policy for a 16-year-old with full coverage can cost $450–$650 per month, while adding that same teen to a parent's policy might increase it by $235–$350 per month. Separate policies only make financial sense in rare situations where a parent has a very poor driving record or recent at-fault claims that already place them in high-risk status.
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Sources
- Minnesota Department of Public Safety - Driver and Vehicle Services
- Minnesota Statute 65B.28 (Good Student Discount Requirement)
- Minnesota Department of Commerce - Auto Insurance Guide
- Insurance Institute for Highway Safety - Graduated Licensing Laws