Best car insurance for millennials

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Millennials are the generation born between 1981 and 1996. This covers a fairly wide age range and represents multiple stages of adult life. Younger millennials may be just starting to make big financial decisions, while older millennials have been handling their finances for years. Nothing says adulthood quite like purchasing your own car insurance, and finding the best car insurance is necessary no matter what age you are.

But millennials are not usually a generation to follow well-worn paths. This holds true for insurance as well. Millennials are changing the insurance landscape, from how they get quotes to how they prefer to manage their policies. Insurance has adjusted accordingly, giving rise to helpful online and mobile tools. But just like everyone else, millennials probably want the best insurance, and that includes finding insurance companies with competitive rates and ample coverage options.

The 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. Insurance is an important part of personal finance, 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 carriers. The data below represents the average annual full coverage premium for each company. While your premiums will vary based on factors such as state regulations and your personal driving history, this information can be used to gauge what your rates might be.

Insurance company Age group Average annual premium
Geico Best for 25-year-olds $1,674
Auto-Owners Best for 30-year-olds $1,385
USAA Best for 35-year-olds $1,235
Erie Best for 40-year-olds $1,229
Amica Best overall $1,512

Geico — Best 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. Geico offers all the standard options, but you can customize your policy with rental car reimbursement, roadside assistance or mechanical breakdown coverage. Geico also offers a user-friendly mobile app, and policyholders can pay bills, file claims and add vehicles on its website.

There are numerous discounts to take advantage of with Geico. Discounts include bundling with your renters or homeowners policy, military and federal employee discounts and having vehicle safety features like airbags.

Auto-Owners — Best for 30-year-olds

Auto-Owners is a regional carrier, offering policies in 26 states. Not only are the rates competitive for 30-year-old drivers, with an average of $1,385 per year, but the customer satisfaction ratings are strong too. Auto-Owners ranked third overall in the 2020 J.D. Power U.S. Auto Claims Satisfaction Study.

Auto-Owners operates with a network of licensed agents nationwide, which is how you obtain a quote and purchase a policy. Once you have purchased your policy, you have access to an online portal and mobile app for your policy management — including filing claims and requesting roadside assistance.

USAA — Best for 35-year-olds

USAA sells insurance exclusively to members of the military or veterans, but if you meet the eligibility requirements, you have access to competitive premiums. USAA offers coverage options specifically tailored to 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. Discounts include policy bundling, safe driver and new vehicle. But you are also rewarded with discounts based on years of service and military installation.

Erie — Best for 40-year-olds

Erie is another regional provider that relies exclusively on an agent network for quotes and policy management. If you live in one of the areas where Erie operates, then you have access also offers unique policy endorsements, including $500 towards vet bills if your pet is injured as a result of a car accident.

Amica — Best overall

Amica ranks best overall, not only because of affordable premiums, but also because of well-rounded policy and discount options. Amica excels in customer satisfaction, ranking second highest in the 2020 J.D. Power U.S. Auto Claims Satisfaction Study. The company also has an A+ rating from AM Best. If you prefer to manage your policy at your fingertips, the Amica app allows you to file claims and access your information whenever you need it.

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.
  • Increase your credit score: Your credit score can affect your car insurance premiums. Drivers with low credit may be more likely to file a claim, 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 driving record is a major factor for 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 consider when generating your premium are your age, gender, location, vehicle, driving history and marital status, among others. With this many variables, it is essential to reach out to several carriers to compare coverage and price to 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 bank will likely have additional insurance requirements. Most lenders require that you carry collision and comprehensive insurance. 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 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 also may not be enough to 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 licensed agent may be a good idea.

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 good financial strength ratings.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 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 coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.

These are sample rates and should be used for comparative purposes only. Your quotes may be different.

Rates are determined based on 2020 Quadrant Information Services data.