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If you were born between the years 1981 and 1996, you’re a millennial. Within this demographic are many unique needs and priorities in regards to auto insurance. However, no one likes overpaying for coverage. So what is the best auto insurance for millennials currently on the market today?
Most millennials are between the ages of 23 and 38. They were hit particularly hard by the great recession, a struggling economy, and staggeringly high student loan debt.
The majority of this generation entered the workforce already at a disadvantage, so it’s no surprise that many millennials put a pause on traditional life achievements such as marriage, having children, and buying a home.
With this in mind, we’ve compiled a list of insurance companies that offer competitive prices for drivers who fall within the millennial age-range.
There are many different factors that affect auto insurance rates, including your age, where you live, and even your driving record. Those under the age of 25 will have a harder time securing cheaper premiums.
Read through our comprehensive guide to learn what insurance companies offer the best millennial auto insurance quotes, what discounts millennials should look out for, and discover if you’re paying too much for your current auto insurance policy.
Buy auto insurance for millennials right now by entering your ZIP code into our free quote tool above.
Table of Contents
We’ve compiled a list of 10 auto insurance companies that are great for millennial drivers. However, before we can say what the best insurance companies are for millennials, we have to define what we mean by ‘the best’.
First, according to the U.S. Bureau of Labor Statistics, anyone born between the years 1981 and 1996 is statistically considered to be a millennial. Therefore, we looked for companies with the most affordable rates for drivers between the ages of 23 and 38.
You also want to ensure you’re buying the right amount of insurance coverage for your needs. According to the Insurance Information Institute (III), auto insurance is legally required in almost every state. Every company on our list sells enough coverage limits to meet those state minimums.
Finally, we’ve also taken into consideration the customer service reviews and financial rankings for the companies on our list. You don’t want to discover that your new provider is unresponsive and slow only after you’ve signed your name on the contract and submitted your first claim.
Without further ado, take a look at the table below to see our top 10 auto insurance companies for millennials.
| Rank | Companies | Average Annual Rates for Millennials | AM Best Rating |
|---|---|---|---|
| 1 | USAA | $2,939 | A++ |
| 2 | GEICO | $3,661 | A++ |
| 3 | State Farm | $4,155 | A++ |
| 4 | American Family Mutual | $4,005 | A |
| 5 | Nationwide | $4,354 | A+ |
| 6 | Progressive | $4,801 | A+ |
| 7 | Farmers | $5,043 | A |
| 8 | Allstate | $6,177 | A+ |
| 9 | Travelers | $6,943 | A+ |
| 10 | Liberty Mutual | $9,177 | A |
Of these 10 companies, the right one for you still depends on your unique needs and demographics. For example, GEICO is best for millennials who are still under the age of 25, as that company specifically targets younger drivers.
Millennials in the military, on the other hand, should consider USAA. Only active and retired military personnel and their families are eligible to use USAA services. If that describes you, take advantage of the low rates and plentiful discount opportunities.
If you are a homeowner or need to insure more than one vehicle, State Farm and Progressive offer great bundling discounts millennials can take advantage of.
If you work remotely, there are also many usage-based insurance options offered by these providers, which we will discuss in more detail later on.
Ultimately, the best auto insurance company will provide you with competitive rates without compromising your coverage needs. The only way you’ll know which of these companies is right for you is by comparison shopping.
Seek out quotes for multiple different companies and compare the policies to be sure you’re getting the most affordable millennial auto insurance rates.
Insurance providers will consider your driving record, where you live, and even what type of vehicle you drive when determining your insurance rates. However, your age as a millennial will be one of the biggest factors that impact your individual costs.
Some millennials are older than 25 and are already receiving some of the better average costs. However, those who are under the age of 25 aren’t as lucky. Statistically, younger drivers cause more accidents and drive more recklessly than those aged 25 and older.
This is partially why insurance for new drivers costs so much more. A lack of driving experience almost always means a more high-risk driver.
According to a data overview for 2019 created by the National Highway Traffic Safety Administration (NHTSA), drivers between the ages of 20 and 24 were involved in more fatal accidents than both teenagers and senior drivers.
Therefore, the youngest millennials should expect to receive higher average auto insurance rates until they turn 25.
See what we mean in the table below, which compares average annual auto insurance rates from our top 10 companies for millennials by gender and age.
| Rank | Companies | Married 35-Year-Old Female Average Annual Rates | Married 35-Year-Old Male Average Annual Rates | Single 25-Year-Old Female Average Annual Rates | Single 25-Year-Old Male Average Annual Rates | Single 23-Year-Old Female Average Annual Rates | Single 23-Year-Old Male Average Annual Rates | Average Annual Company Rates |
|---|---|---|---|---|---|---|---|---|
| 1 | USAA | $1,622 | $1,605 | $2,043 | $2,180 | $4,812 | $5,373 | $2,939 |
| 2 | GEICO | $2,405 | $2,371 | $2,442 | $2,252 | $6,014 | $6,485 | $3,662 |
| 3 | State Farm | $2,292 | $2,292 | $2,593 | $2,789 | $6,812 | $8,155 | $4,156 |
| 4 | American Family Mutual | $2,299 | $2,304 | $2,327 | $2,682 | $6,037 | $8,381 | $4,005 |
| 5 | Nationwide | $2,721 | $2,744 | $3,015 | $3,237 | $6,573 | $7,834 | $4,354 |
| 6 | Progressive | $2,380 | $2,255 | $2,816 | $2,847 | $8,828 | $9,681 | $4,801 |
| 7 | Farmers | $2,745 | $2,739 | $3,150 | $3,234 | $9,077 | $9,313 | $5,043 |
| 8 | Allstate | $3,566 | $3,537 | $3,830 | $3,969 | $10,416 | $11,744 | $6,177 |
| 9 | Travelers | $2,532 | $2,552 | $2,745 | $2,935 | $13,823 | $17,074 | $6,944 |
| 10 | Liberty Mutual | $6,016 | $6,016 | $6,087 | $7,130 | $13,311 | $16,503 | $9,177 |
Don’t worry, you will be able to find cheap auto insurance for young drivers. However, try to avoid companies that weigh age more heavily than others. We recommend GEICO and State Farm for the youngest millennials, and USAA if you are eligible.
When looking at this data, keep in mind that every insurance company uses a different equation to calculate policy rates. If you live in a region where a company is less active, your quotes from that provider might be much higher than average.
Companies, like Progressive, purposefully target the millennial-age audience through advertisements, commercials, and marketing.
While a funny commercial is charming, it’s also important that the company follows through and provides millennial drivers with competitive rates. Fortunately, you can also qualify for various stackable discounts with these companies, which will lower your annual premiums.
Millennials are certainly not known for being traditional. That can be applied to your auto insurance, too. Pay-per-mile programs are becoming widely available, in large part thanks to millennial consumers. Keep reading to find out if a usage-based program is right for you.
Usage-based auto insurance policies from companies like Root, Metromile, and Lemonade offer a new take on insurance in hopes of attracting more millennial drivers.
These companies use an app or device to track driving habits and charge rates accordingly, which means your premium can change from month to month. For millennials who work from home or drive less than average, this can be a very good option.
Of our top 10 companies for millennials listed above, eight offer a usage-based driving program. In the table below, check out details about these various programs, including how much you might save by enrolling.
| Companies | Usage-Based Program Name | Potential Savings |
|---|---|---|
| Allstate | Drivewise | When you sign up, save up to 10% Save up to 30% for safe driving every 6 months |
| American Family | KnowYourDrive | When you sign up, save 5% Save up to 20% for safe driving |
| GEICO | DriveEasy | Trials began August 2019 Program savings unknown |
| Liberty Mutual | RightTrack | Guaranteed savings at sign up Save up to 30% for safe driving |
| Nationwide | SmartRide | When you sign up, save 10% Save up to 40% for safe driving |
| Progressive | Snapshot | Savings at sign up avg: $26 Program avg savings: $145 |
| Travelers | IntelliDrive | Possible savings at sign up Save up to 20% for safe driving |
| State Farm | Drive Safe & Save | When you sign up, save about 5% Save up to 30% for safe driving |
While these companies are providing slightly more affordable rates to drivers, some millennials feel wary about allowing a company to track their driving habits.
Make sure you always read the fine print and know exactly what information a company is collecting from you. It is also important that you know how that information is being used. If a company is selling that data, perhaps it’s better worth your time looking elsewhere for coverage.
Every insurance provider will offer an array of different discounts to its customers. Some discounts, however, are relatively standard across most major insurers. Millennials have an opportunity to take advantage of as many of these discounts as possible, leading to some great savings.
If you’re a millennial driver, see if your provider offers the following auto insurance discounts:
You can also receive discounts due to having different safety features and anti-theft devices installed on your vehicle. If you drive a car with adaptive cruise control or headlight, anti-lock brakes, and daytime running lights, tell your insurance agent and see if you qualify for more savings.
At the end of the day, millennials of all ages will be able to secure affordable auto insurance. By maintaining continuous auto insurance coverage, practicing safe driving techniques, and comparing prices from multiple providers, you can keep your insurance rates low.
You are now ready to buy auto insurance for millennials. Enter your ZIP code into our free tool below to receive auto insurance quotes for millenials.
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