Insurance in Minnesota & Wisconsin: What’s the Difference?

Have you ever stopped to wonder what factors go into calculating the insurance rates for your home and auto? Further, have you wondered what the difference is in insurance rates between Minnesota and Wisconsin? Even though we are neighbors, there are differences.

Let’s break them down.

First, auto insurance. Many factors go into determining your premium, including your age and gender, the make and model of the car, your credit history, claims history, and more.

It should be no surprise that your geography also plays a role. We in Minnesota and Wisconsin are no strangers to driving in snow and ice, but that doesn’t mean we are good at it. According to the Insurance Information Institute, winter storms account for the third costliest natural disasters in the U.S. when it comes to insurance claims.

So, winter factors into your rates as well in both states.

A key difference in auto insurance between Minnesotans and Wisconsinites is no fault versus tort.

Minnesota is a no-fault state meaning every driver must have automobile insurance for his or her car or cars. And every insurance policy must include the compulsory no-fault clause.

Wisconsin, on the other hand, is a tort state so at-fault drivers in a crash are responsible for paying the other driver’s medical expenses. They also must pay for additional damages, such as lost wages and “pain and suffering.”

Tort states like Wisconsin require drivers to carry liability insurance to cover injuries to others and damages to property if they are in an accident.

Where does MN and WI rank nationally in terms of auto insurance rates?

The average premium in the country is $1,365. Minnesota ranks 33^rd with an average premium of $1,215.

Wisconsin ranks 45^th with an average premium of $1,084.  

What determines homeowners insurance rates?

Homeowners insurance rates fluctuate from state to state, city to city, and even zip code to zip code. It should be no surprise that homeowners in states that deal with hurricanes and earthquakes tend to pay the most for their insurance. Florida is the most expensive sate.

Other factors that impact the fluctuation in rates include:

• Local construction costs – you want coverage for the full cost of rebuilding your home from the ground up, should a catastrophe occur. Thus, the local construction costs play a role.

• Building codes in your location – if you live in an older home and you lose it to a catastrophic event, you may be forced to rebuild according to updated building codes, which can be drastically more expensive.

• Proximity to a fire station – believe it or not, the closer you live to a fire station, the lower your homeowners insurance premium will be since fire-related claims in your area are generally not as costly. The farther away from a fire department you are, the more likely you are to suffer a total loss.

• Exposure to hazards – as mentioned above, premiums tend to be higher for those homeowners living in an area prone to storm, earthquakes or wildfire damage, such as coastal areas and Tornado Alley. Another “hazard” is burglary, so if your home is in an area with higher burglary rates, your premium will be impacted.  Same if you are close to local businesses or commercial properties.

Other factors that determine your homeowners insurance rate include:

• Age and condition of your home
• Updates to mechanicals and your roof
• If you have a pool or trampoline
• Breed of dog you own
• Your claims history
• Appropriate level of coverages

Where do Minnesota and Wisconsin rank?

For homeowners insurance, Minnesota is the 36^th least expensive state with an annual rate of $1,219. Wisconsin is the 4^th least expensive state with an annual rate of $686.

Curious about your homeowners and auto insurance premiums? I’m happy to take a look at what you currently have and see if there are any better options for you. There is no obligation to make a move at all; I just want you to have the best coverage at the best rate.

Please contact me if you’d like to learn more.