Many drivers are eager to find the best auto insurance rates, especially with premiums on the rise from factors like inflation, natural disasters, and increased litigation costs. In this article, we will discuss about the best auto insurance rates in 2025.

1. USAA

USAA is an insurance company that provides the lowest average annual car insurance premium at $1,335. It is the most affordable insurer overall in 2025. USAA’s coverage is available only for current and former U.S. military members, veterans, and their families.

It offers the best rates for all kinds of drivers, including those with speeding tickets, accidents, and for both minimum and high coverage policies. For instance, USAA’s rates are roughly 35% lower than the national average.

2. Erie Insurance

Erie Insurance offers the best auto insurance rates for many drivers, with an average annual premium of $1,532, making it the second most affordable choice. Erie is known for providing the most affordable rates for good drivers ($1,532), teen drivers (female teens at $3,478 and male teens at $4,351), senior drivers, and those who have had a speeding ticket or accident.

Erie provides some really great rates for minimum coverage at $1,483 and high coverage at $1,574, coming in just behind USAA. Erie is available in a few states like Illinois, Pennsylvania, Ohio, and Virginia. The company provides a rate-lock feature that prevents premium increases unless there are changes to the policy.

3. Nationwide

The average annual premium for Nationwide is $1,621, which is quite similar to Erie Insurance. It provides the most budget-friendly rates for drivers with less-than-perfect credit and is also a great option for those who have speeding tickets or accidents.

Nationwide offers some great usage-based insurance programs such as SmartRide, which can help safe drivers save up to 40%, and SmartMiles for those who drive less. It’s widely available throughout the U.S.

4. State Farm

State Farm’s average annual premium is just a bit higher than the national average of $2,150. It provides the most affordable full-coverage insurance among major national companies at $1,608 per year, along with the lowest liability-only insurance at $660.

State Farm is easily accessible across the country and is a great option for those looking to bundle their policies, although it tends to be pricier compared to USAA, Erie, and Nationwide.

5. Progressive

Progressive provides the best auto insurance rates for drivers with a DUI, with an average annual premium of $2,296 after a DUI, which is around 32% lower than the national average for this high-risk group.

Progressive is a great option for anyone looking for affordable coverage, especially if they’ve had some serious infractions, even though their general rates might be higher for other drivers. Progressive also offers a variety of discounts and coverage options across the country.

Finding the best auto insurance rates really depends on your eligibility, driving history, and coverage needs, but these companies are some of the most budget-friendly choices according to the latest data. By exploring these options and happily comparing quotes, drivers can find the best rates while still enjoying the coverage they need.

Source:
1. https://www.forbes.com/advisor/car-insurance/cheapest-car-insurance/
2. https://www.usnews.com/insurance/auto/cheapest-car-insurance-companies