Minnesota car insurance rates: Summer storms could send your bill back up
(FOX 9) - Severe summer storms in Minnesota can leave more than just physical damage — they can also put a strain on your wallet, driving up repair costs and insurance premiums.
How storms have driven up insurance costs
What we know:
Insurance companies say the rise in severe weather, especially hail, has led to higher repair costs and insurance claims.
"As we have more severe hail storms, as we have wind that comes through, those more severe conductive storms, all of that stuff and the damage that it does is reflected in the rates," Aaron Cocking, CEO of the Insurance Federation of Minnesota, told FOX 9.
Just three storms in 2022 and 2023 caused $6.5 billion in damage to homes and cars in Minnesota. Between 2022 and 2024, auto insurance premiums in the state rose by 29%, which is faster than the national average and higher than neighboring states.
Stephan Hays, who repairs hail-damaged vehicles, has traveled all over the country for work over the last 12 years, but lately, he’s mostly stayed close to home in Minnesota.
"Minneapolis has gotten some kind of hail damage almost every year for like five or six years straight," he said.
The Department of Commerce reviews insurance rate increases to make sure companies are not overcharging.
"We want to make that they're bringing in enough money to be able to pay claims, but also want to be sure that they are not overcharging consumers," said Julia Dreier, Minnesota Department of Commerce Deputy Commissioner.
Insurify reports that price quotes are still 63% higher now than four years ago, but insurance rates have started to come down as the number of storms has dropped in the past couple years.
One year after the Bemidji derecho
It's been one year since a powerful derecho tore through northern Minnesota, toppling an estimated 9 million trees and dramatically changing the landscape around Bemidji. DNR Wildlife Manager Blane Klemek joins us to discuss the storm's lasting impact, ongoing cleanup efforts, and how forests and wildlife are recovering.
Keeping your costs in check
Why you should care:
Even if your car is not directly damaged in a storm, widespread claims can still affect your insurance bill.
"If we have another billion-dollar storm come like the happy hour hailstorm that hit in 2023, a couple of those, and suddenly it's like right back up to where we were because insurers are going to have to pay out for the significant damage that occurs," said Cocking.
Experts recommend keeping a clean driving record and shopping around for the best insurance rates when your policy renews.
While some rate hikes are unavoidable after big storms, individual actions can still help you save money.