Why Your Insurance Is Skyrocketing In Minnesota – The Highest Increase In US

If you haven't checked your insurance policy lately, be ready for a shock. Minnesota has seen the highest insurance premium increases in the entire United States. Other states have seen big increases as well, but Minnesota is reported to see as much as a 55% increase in premiums.

Both home insurance and auto insurance premiums are going up.

According to Axios, auto insurance rates shot up 55% year over year through June 2024. Home insurance premiums went up 39% in the last 6 years.

What's behind the increase?

There are a lot of different factors. Basically, insurance companies say they've been losing money over the last few years because of multiple issues. The cost of labor is up to repair damaged homes, supply chain disruption has meant higher prices for materials.

For vehicles, they are getting more expensive and harder to replace. Supply chain shortages have driven the price up for replacement parts.

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Is climate change to blame?

We think we are pretty safe from climate change in Minnesota. However, the state has seen more severe weather, causing more storm damage in recent years.

And - coverage is getting worse.

Some insurance companies are no longer covering storm damage from wind and hail. Check your policy. Not only are you paying more, you're getting covered for less in a lot of situations.

My personal coverage premiums jumped $100 a month.

In 2021, I was paying $235 for car insurance. Fast forward to 2024, and I'm now paying $400 a month for even less coverage. It's a very hard pill to swallow.