Auto Insurance for Millennials (2024)

Of these 10 companies, the right one for you still depends on your unique needs and demographics. For example, Geico auto insurance 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. Check out our USAA auto insurance review for more information.

If you are a homeowner or need to insure more than one vehicle, State Farm and Progressive offer great opportunities to save money by bundling insurance policies that millennials can take advantage of.

If you work remotely, there are also many usage-based auto 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.

What are the average auto insurance rates for millennials?

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, finding cheap auto insurance for young drivers is a challenge. 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.

Average Annual Auto Insurance Rates from the 10 Best Companies for Millennials by Gender and Age

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.

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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 insurance 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.

Should millennials buy usage-based auto insurance?

Usage-based auto insurance policies like Root auto insurance, Metromile auto insurance, and Lemonade auto insurance 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. Read on American Family knowyourdrive review.

Usage-Based Programs from the Best Auto Insurance Companies for Millennials

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 to look elsewhere for coverage.

Read more: Travelers IntelliDrive App Review

What are the best auto insurance discounts for millennials?

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:

• Safe driver discount: If you go for a number of years without filing a claim, you can earn a policy discount as high as 45 percent from providers like Allstate auto insurance.
• Good student discount: If you’re a college student with a B average, you can receive a good student discount rate as high as 25 percent from companies like State Farm and Liberty Mutual.
• Multi-car discount: If you need to insure more than one vehicle, you can receive a discounted rate of up to 25 percent from providers like Geico or State Farm.
• Multi-policy discount: If you own a home, you can bundle your home and auto insurance policies for a savings opportunity of up to 10 percent from places like State Farm and Travelers.
• Paperless billing discount: If you switch to paperless billing, you can receive a $50 discount from Progressive and a $30 discount from Nationwide.
• Online Shopper discount: If you buy your policy online, Progressive will take seven percent off of your quoted rate.

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.