What's The Cheapest Car Insurance Company In 2025?
If you're just looking for the cheapest car insurance company overall in 2025, the answer is simple: USAA. Its average annual premium is around $1,335, beating every competitor across almost all categories. But there's a catch; it's only available to military members, veterans, and their families. If you don't qualify, Erie Insurance and Nationwide are your best bets for affordable coverage, both also coming in hundreds below the national average of $2,068. Erie averages $1,532 per year for good drivers, followed by Auto-Owners at $1,619 and Nationwide at $1,621. All of them come in well under bigger names like Geico, Progressive, and State Farm when it comes to average cost. But it's not just clean-driving adults who benefit. Erie also leads for teen drivers, seniors, and drivers after a speeding ticket or accident.
Meanwhile, Nationwide delivers the lowest rates for people with poor credit and families adding a teen to a parent's policy. Insurance cost varies based on state, age, and driving record (not car color, though), but patterns are clear. USAA dominates if you're eligible; if not, Erie and Nationwide offer the broadest low-cost coverage across driver profiles. Keep in mind, however, that Erie and Auto-Owners have limited availability; they don't write policies in every state. Auto-Owners is available to residents of 26 states, while Erie is only an option for residents of 12. If you're in a region they cover, you're in luck. If not, Nationwide becomes your go-to for accessible, affordable coverage with fewer restrictions.
Cheapest car insurance company by driver type
Insurance rates jump when you have accidents or violations on your record, but some companies handle incidents more gently than others. After a speeding ticket, accident, or DUI, most drivers will see their premiums increase. In 2025, 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. After an accident, it's $1,964. That's 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. Erie and State Farm also post strong numbers here. When less-than-optimal credit becomes the issue, Nationwide takes the lead. Drivers with low credit ratings pay around $2,268 annually with Nationwide, almost half off the national average. That matters, considering poor credit can apparently spike your rates more than an accident or DUI would.
And if you're trying to insure a teen? Again, Erie holds the lowest rates: $3,478 and $4,351 for 17-year girls and boys, respectively. While steep, both those numbers are more than 50% below national averages for the category. USAA and Auto-Owners follow closely, but with access restrictions or limited state coverage. Erie's consistent low pricing across risky categories makes it the most budget-friendly for families, teens, and anyone with a less-than-perfect record.
State and coverage level matter, and minimum isn't always best
Your location plays a huge role in how much you'll pay. For example, 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. USAA continues to undercut everyone, but Erie is the best option for non-military families. If you only want minimum coverage, Erie's rate of $1,483 is the lowest outside of USAA. But for full coverage, Erie still wins at $1,574, beating even its low-cost competitors by a wide margin.
Still, going with bare minimum coverage just to save money can backfire. Experts warn that the cheapest policies often leave big gaps in protection, whether you have a cracked windshield, are at fault in an accident, or need to know if your insurance covers engine failure. Minimum liability coverage might keep you legal, but it won't cover damage to your car or anything beyond low state-required limits. And 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.