Best car insurance for millennials

Millennials — considered the generation born between between 1981 and 1996 — are changing the car insurance landscape. Starting with how they get quotes to how they manage policies, insurance companies have adapted to allow more web-based and mobile app solutions. But just because a car insurance company has a new app with a great interface and user experience doesn’t mean they offer the best car insurance and customer service. To find the best car insurance for millennials, Bankrate analyzed a number of auto insurance companies to find ones with competitive rates, ample coverage options and highly-rated digital options.

Best car insurance for millennials

Not only is car insurance legally required in almost every state, but it also provides financial protection if you damage property or injure someone in a car accident. You can also purchase optional collision and comprehensive coverage to protect your own vehicle from a variety of hazards, which about 80% of U.S. drivers choose to do, according to the Insurance Information Institute (Triple-I). Insurance is an important part of personal financial planning, so choosing the best company for your needs is crucial.

Bankrate uses Quadrant Information Services to obtain up-to-date premium information from a wide range of auto insurance companies. These carriers were chosen because they offer a broad range of coverage choices and discounts, have competitive rates and score highly for customer satisfaction and financial strength. Additionally, these companies offer digital and mobile tools, which millennials may find particularly appealing. The data below represents the average annual full coverage premium for each company on our list. While your premiums will vary based on factors such as state regulations and your personal driving history and other individual factors, this information can be used to gauge what your rates might be.

Geico — A good option for 25-year-olds

Geico is well known for providing a wide range of discounts on car insurance, but it also provides a number of coverage options for young drivers, including 25-year-old drivers. Geico offers all the standard options, but you can personalize your policy with rental car reimbursement, roadside assistance or mechanical breakdown coverage. Geico also offers a user-friendly online experience for millennial drivers with its award-winning mobile app, and policyholders can also pay bills, file claims and add vehicles on its website. However, Geico is considered a direct writer and has a limited number of in-person agencies compared to other major insurers. Depending on the nature of your insurance needs and how complex they might be, you may prefer to work with an licensed local agent who can partner with you to build a robust insurance plan.

Learn more: Geico Insurance review

Auto-Owners — A good option for 30-year-olds

Although Auto-Owners only offers coverage in 26 states, its rates are competitive for 30-year-old drivers, with an average of $1,385 per year for full coverage. However, its customer satisfaction rankings are not as high for claims as other companies featured on our list, coming in just below industry average in the 2021 J.D. Power U.S. Auto Claims Satisfaction Study. After purchasing a policy, policyholders have access to an online portal and mobile app for policy management, as well as filing claims and requesting roadside assistance.

Learn more: Auto-Owners Insurance review

USAA — A good option for 35-year-olds

USAA offers competitive rates compared to other insurance carriers, but its coverage is restricted to active-duty military, veterans and qualified family members. This military-focused insurance company offers tailored coverage and discount options that could prove beneficial for millennial military members and their families, including the option to reduce your premiums if you are deployed and not using your vehicle.

On top of the competitive rates, USAA offers a wide variety of discounts. These include premium reductions for policy bundling, safe drivers and new vehicles. You can earn additional savings with discounts based on your years of service and military installation.

Learn more: USAA Insurance review

Erie — A good option for 40-year-olds

Erie is a regional carrier that offers unique policy endorsements that sets it apart from other insurers that millennials may enjoy. For millennials who own pets, Erie car insurance offers coverage that pays up to $500 toward vet bills if your pet is injured as a result of a covered car accident. However, Erie’s auto coverage market is limited and only available in 12 states and Washington, D.C., so it may not be an option for many millennial drivers.

Erie also offers a popular Rate Lock feature, which ensures that your premium does not change unless you make changes to your policy, like adding or removing a vehicle, adding or removing a driver or changing your coverage limits.

Learn more: Erie Insurance review

Amica — A good option for all millennials

Amica may be a great option for all millennials, not only because of affordable premiums, but also because of its well-rounded policy and discount options. If you are a millennial who prefers to manage your policy at your fingertips, the Amica app allows you to file claims and access your information whenever you need it. Younger millennials aged 30 and under could also qualify for Amica’s legacy discount, which is extended to drivers who stick with Amica after coming off their parents car insurance policy. While Amica’s customer satisfaction is generally high, it also received a score of 1.96 in the National Association of Insurance Commissioners (NAIC) Complaint Index, indicating that it received almost twice as many complaints as expected in the market.

Learn more: Amica Insurance review

Cheap car insurance for millennials

For millennials, who are often dealing with student loan debt and other financial obligations, finding cheap car insurance may be just as important as finding the best car insurance. Fortunately, there are several ways for millennials to save on their auto insurance, including:

• Comparison shopping: Comparing multiple providers is key. Insurance premiums vary greatly between carriers, so obtaining quotes from multiple companies can help you find the coverage you need for less.
• Take advantage of discounts: Talk to your agent about discounts or check a company’s website for more information. From paying in full to obtaining paperless statements, most companies offer numerous discounts to help policyholders lower their premiums. You could also consider bundling your auto insurance with your home or renters insurance at the same company to earn a multiple policy discount.
• Increase your credit score: Your credit-based insurance score can affect your car insurance premiums in most states. Drivers with low credit may be more likely to file a claim according to actuarial data, so car insurance companies generally charge them a higher premium to offset this risk. If you can raise your credit score, you may save some money on your car insurance.
• Practice safe driving habits: Your motor vehicle record is a major factor for determining premiums. In general, the more activity on your driving record, the more you will pay for car insurance. If you can avoid traffic violations and accidents, you may be able to avoid the corresponding premium increases.

Other factors that insurance companies typically consider when generating your premium are your age and gender (in most states), location, vehicle make and model, annual miles driven, claim history and marital status (except in HI and MI). With this many variables, reaching out to several carriers to compare coverage and price could help you find the policy that suits you best.

Frequently asked questions

What auto insurance do I need if I am leasing or financing a car?

In addition to having at least your state’s minimum required coverage, your finance company will likely have additional insurance requirements. Most lenders require that you carry collision and comprehensive coverage, often called “full coverage.” If you lease a vehicle, some dealers may require you to purchase gap insurance. This covers the difference between what you owe and the value of your new leased vehicle, if your car is totaled in an accident.

How much liability coverage do I need?

Almost all states require a level of minimum liability coverage, both for bodily injuries and property damage. However, while carrying the minimum liability limits may keep your premium low, it may not be enough to financially protect you in the event of an accident. If the damages in an at-fault accident exceed the limits of your car insurance, you will have to pay the difference out of pocket. If you are unsure how much coverage you should purchase, working with a local insurance agent may be beneficial.

How do I find the best car insurance for me?

One of the best methods for finding affordable car insurance is to compare multiple carriers. This will allow you to see the coverage options that various companies can offer you, as well as what discounts you might qualify for. You may also want to consider getting quotes from carriers with strong customer service reviews and excellent financial strength ratings — A- (Excellent) or higher.

At what age is car insurance most expensive?

Car insurance is generally most expensive for teen drivers and young adults (under age 25) because they are the least experienced behind the wheel. If a young driver maintains a clean driving record, they can generally expect their premiums to consistently drop as they get older and gain confidence and experience on the road.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on male and female drivers aged 25-40 with clean driving records, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.