Cheapest Car Insurance Companies in 2025
If you’re looking for the cheapest car insurance company overall in 2025, the answer is simple: USAA. With an average annual premium of around $1,335, it beats every competitor across almost all categories. However, there’s a catch – it’s only available to military members, veterans, and their families.
For those who don’t qualify for USAA, Erie Insurance and Nationwide are the best bets for affordable coverage. Erie averages $1,532 per year for good drivers, followed by Auto-Owners at $1,619 and Nationwide at $1,621. These rates are significantly lower than bigger names like Geico, Progressive, and State Farm.
Erie Insurance stands out for its low rates across various driver profiles. It leads for teen drivers, seniors, and drivers with a speeding ticket or accident. Nationwide delivers the lowest rates for people with poor credit and families adding a teen to a parent’s policy.
Insurance costs vary based on state, age, and driving record. USAA dominates if you’re eligible; if not, Erie and Nationwide offer the broadest low-cost coverage across driver profiles. However, it’s essential to note that Erie and Auto-Owners have limited availability, with Erie only available in 12 states and Auto-Owners in 26 states.
Insurance Rates by Driver Type
Insurance rates jump when you have accidents or violations on your record. Erie consistently offers the cheapest post-violation rates, unless you’re eligible for USAA. For drivers with a speeding ticket, Erie averages $1,765 per year, and after an accident, it’s $1,964. These rates are about $750 below the average annual cost in both cases.
For DUI cases, Progressive comes out on top with an average of $2,296, making it the best mainstream option when your record takes a serious hit. Nationwide takes the lead for drivers with low credit ratings, charging around $2,268 annually, almost half off the national average.
State and Coverage Level Matter
Your location plays a huge role in how much you’ll pay. The average premium in Texas in 2025 is $5,234, while in Maine it’s just $1,411. The cheapest provider shifts depending on the state. Nationwide and American National dominate the Rockies, Travelers is a good option in much of the south and midwest, and Erie is cheapest in Ohio and North Carolina.
While going with bare minimum coverage might save money, it can backfire. Experts warn that the cheapest policies often leave big gaps in protection. Minimum liability coverage might keep you legal, but it won’t cover damage to your car or anything beyond low state-required limits. The difference between losing your savings in a lawsuit and having full, reputable coverage is usually just a few hundred bucks a year.
If cost is your biggest concern, Erie and Nationwide consistently offer the best rates in 2025. Just make sure your ‘cheap’ insurance doesn’t end up being the most expensive mistake you make.
