Insurance rates for home owners and drivers are on the rise in Minnesota. And they're now among the highest in the country.
Severe weather is the main culprit for rising homeowners insurance, according to Aaron Cockling with the Insurance Federation of Minnesota.
"So as we have increased loss activity, and we've seen that significantly in Minnesota over the last five to 10 years," Cockling explains. "Especially a dramatic rise in severe convective storms leading to significantly increased wind and hail activity, which is causing significantly more damage. There has to be an increase in premium to be able to pay those increased losses."
Car insurance is a little trickier.
"As a result of tariffs and other things, the price of auto parts increasing as the cost of vehicles have gone up," Cockling adds. "Obviously, the cost of repairing those vehicles is going up right with that."
And that's just one piece to the puzzle which includes more crashes due to snowy, icy roads and people driving at higher speeds.
In a new report from Insurify, homeowners insurance in Minnesota has skyrocketed over the last two years. Rates have jumped a staggering 64% over that time, the largest increase of any state in the country. Minnesota home insurance rates surged by 34% in 2025, an increase of nearly $900, bringing the state’s average annual policy to $3,530.
Overall, Minnesota has gone from 21st most expensive, all the way to 9th. Having crazy weather in Minnesota is not new, but perhaps it is surprising to hear that it ranks ahead of places like Florida and Texas when it comes to weather disasters.
Florida still tops the nation in insurance costs, mostly thanks to several significant hurricanes in recent years.
"Minnesota has the second most extreme weather of any state in the nation, second only to California," Cockling says. "And I think when people hear that, and then you hear, 'well, this is what's happening and these are all the storms that we're seeing as a result of that extreme weather,' that it maybe makes sense that our premiums are going up."
The ten most expensive states for home insurance according to projections for 2026.
(Courtesy of Insurify)
Insurify says severe convective storms, which can conjure tornadoes, hail, and other perils, have wrought damage across the U.S. in recent years, particularly in the Midwest and Great Plains states. These storms caused more than $52 billion in insured losses in 2025, the third-highest total on record, behind only 2023 and 2024.
The states the make up the top ten are Florida, Oklahoma, Louisiana, Nebraska, Texas, Colorado, Alabama, Mississippi, Minnesota, and Illinois. Minnesota led the way for largest jump in 2025, followed by Colorado, Iowa, Nebraska, Oklahoma and South Carolina.
Minnesota also saw - by far - the largest premium increase nationally since 2023 at 64% followed by Colorado's 55%.
Looking for cheap rates? Vermont, Maine, Utah, New Hampshire and Alaska are at the bottom of the list.
Cockling says to talk with your insurance agent regularly to make sure your policy covers you for what you need.
