Finding Affordable Insurance for Doctors in the US: A Guide for 2025

Being a doctor or another healthcare helper means you need special insurance called medical malpractice insurance. This insurance helps protect them if a patient says they made a mistake that caused harm. It’s a really important cost for them, but the price can be very different depending on where they work in the United States.

In 2025, some states will have much cheaper insurance prices. These cheaper states often have special rules that limit how much money can be paid out in lawsuits. They also tend to have fewer lawsuits overall.

Why Insurance Prices Change by State

The cost of this insurance changes a lot from state to state because of a few main things:

State Rules (Tort Reform): Some states have rules that put a limit on how much money a patient can get for things like pain or suffering if they win a lawsuit. For example, in California, this limit is $350,000 in 2025. In places like New York, there are no limits, so insurance can be much more expensive.
How Often People Sue: States where people sue doctors less often usually have lower insurance costs.
How Many People Live There: Busy cities often have more lawsuits than quieter, rural areas, making insurance more expensive in cities.

On average, this insurance costs about $7,500 each year across the country, but in the cheapest states, it can be as low as $3,000 for doctors who do less risky work.

The 5 Cheapest States for Doctor’s Insurance in 2025

Based on information from places like Cunningham Group and Physicians Thrive, here are the top 5 cheapest states for this insurance for family doctors:

Wisconsin: This state is the cheapest. It has a limit of $750,000 on payments for pain or suffering. Also, if a claim is really big (over $1 million), a special state fund helps pay the rest, which makes the regular insurance cheaper. Not many lawsuits happen here.
- Average cost: $3,000–$6,000 per year.
Minnesota: Even without as many strict payment limits, Minnesota is affordable because not many lawsuits happen, and juries don’t usually award huge amounts of money.
- Average cost: $3,200–$6,500 per year.
Kansas: Kansas has limits on lawsuit payments, like $350,000 for pain or suffering (which will go up to $450,000 by 2027). Fewer people live here, and there are fewer lawsuits in cities like Wichita, which keeps prices low.
- Average cost: $3,500–$7,000 per year.
Indiana: This state has rules that limit the total amount of money a patient can get to $1.8 million. A state fund also helps pay for really big claims, which lowers the insurance cost for doctors.
- Average cost: $3,500–$7,500 per year.
Iowa: Iowa also has rules that limit payments, like $250,000 for pain or suffering (with some exceptions). It’s a more rural state, so fewer lawsuits happen, keeping costs down.
- Average cost: $3,800–$7,500 per year.

Other states that are also quite affordable include Texas ($4,000–$8,000), Mississippi ($4,000–$8,000), and Missouri ($4,500–$9,000).

Other Things That Change Insurance Costs

Besides the state, other things affect how much a doctor pays:

What Kind of Doctor They Are: Doctors in high-risk jobs, like those who help deliver babies (OB/GYN, costing $30,000–$50,000) or surgeons ($20,000–$40,000), pay a lot more than doctors in lower-risk jobs like psychiatrists ($4,000–$9,000).
Where They Work: Doctors in the countryside usually pay less than doctors in big cities because there are fewer lawsuits in rural areas.
Type of Insurance Plan:
- Claims-made policies are usually cheaper at first. But if a doctor stops working, they might need extra insurance called “tail coverage” to cover any old problems that pop up later. This tail coverage can be expensive, like double their yearly payment.
- Occurrence policies are more expensive each year, but they cover any problem that happened while the policy was active, even if the claim is filed much later.
Past Lawsuits: If a doctor has never been sued, they can save 10–25% on their insurance. If they have been sued before, their costs will go up.

Top Insurance Companies for Doctors in Affordable States

Some good companies that offer competitive insurance in these low-cost states include:

The Doctors Company: Offers plans starting at $3,500 in states like Wisconsin. They give discounts for training.
MedPro Group: Offers plans starting at $4,000 in states like Indiana. They sometimes give free “tail coverage” to doctors who retire.
Berxi: This company offers direct and affordable plans starting at $3,000 for primary care doctors.
COPIC: A company led by doctors, it offers plans from $3,800 in Midwest states like Iowa.
NORCAL (ProAssurance): Offers plans from $4,000 in states like Kansas.

Smart Ways for Doctors to Save Money on Insurance

Doctors can save money on their malpractice insurance by:

Working with an Insurance Helper (Broker): Brokers can compare prices from many different insurance companies and help doctors save up to 20%.
Getting Discounts: Taking special courses on how to avoid mistakes, having no past lawsuits, or being part of medical groups can get them 5–15% off.
Choosing the Right Policy: “Claims-made” policies are cheaper upfront, but remember the cost of “tail coverage” if needed.
Joining a Group Plan: If doctors work in a big group practice or a hospital, they can often get lower insurance rates.
Working in Rural Areas: Choosing to practice in places like rural Wisconsin or Iowa can lead to much lower insurance payments than in big cities.

Why This Insurance Is So Important

Even in states where insurance is cheap, a single lawsuit can cost a doctor $300,000 or more, which could cause big financial problems. Hospitals often require doctors to have this insurance to work there. Having good insurance gives doctors peace of mind.

In Conclusion

In 2025, states like Wisconsin, Minnesota, Kansas, Indiana, and Iowa are the cheapest for medical malpractice insurance because of their special rules and fewer lawsuits. Companies like The Doctors Company, MedPro Group, and Berxi offer good, affordable plans. By comparing prices and using discounts, doctors can keep their costs low while staying protected. Working in these cheaper states can really help doctors save money and have a long career.