Millennials are the generation born between 1981 and 1996. This range covers many stages of adulthood and encompasses a wide age group. While younger millennials might be making their first big financial decisions, older millennials are more experienced in managing their finances. Nothing says adulthood quite like purchasing your own car insurance, and finding the best car insurance is necessary no matter what age you are.
However, millennials don’t tend to be the generation that follows well-worn routes. The same holds true for insurance. The insurance landscape is changing with millennials, from how they obtain quotes to how they manage their policies. The rise of online and mobile tools has helped insurance companies adapt. 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
Car insurance is required in nearly every state. It also protects you financially in the event that you injure or damage someone’s property in an accident. It is important to choose the right company for you. Insurance is an essential part of personal finances.
Quadrant Information Services is used by Bankrate to get the most current premium information from a variety of carriers. These carriers are chosen for their ability to offer discounts and broad coverages, as well as competitive rates and high customer satisfaction scores. These companies also offer mobile and digital tools that millennials might find appealing. 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.
Geico — Good choice 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 provides all the usual options. However, you can also customize your policy by adding rental car reimbursements, roadside assistance, or mechanical breakdown coverage. Geico’s award-winning mobile app makes it easy to use for young drivers. Policyholders can also pay bills, file claims, and add vehicles via its website.
Geico offers many discounts. Geico offers discounts for bundling your homeowners or renters policy with military and federal employees discounts, as well as vehicle safety features such airbags and other discounts.
Auto-Owners — An excellent choice for 30-year olds
Auto-Owners, a regional carrier that offers policies in 26 states, is available. Not only are the rates competitive for 30-year-old drivers, with an average of $1,385 per year for full coverage, but the customer satisfaction ratings are strong too. The 2020 J.D. ranked Auto-Owners third. Power U.S. Auto Claims Satisfaction Survey.
Auto-Owners operates with a network of licensed independent agents nationwide, which is a great way for millennials to shop for the best cheapest car insurance in their area. After you purchase your policy, you will have access to an online portal as well as a mobile app that allows you to manage your policy. This includes filing claims and calling for roadside assistance.
USAA — Great choice for 35-year olds
USAA offers competitive rates for millennial military personnel and their spouses. The military-focused insurance company provides coverage options that are tailored for military personnel and their families. You can also reduce your premiums if your vehicle is not being used or deployed.
USAA offers many discounts in addition to competitive rates. You can get discounts on policy bundling, safe driving and new vehicles. You will also be rewarded for years of service or military installation.
Erie — An excellent choice for 40-year olds
Erie is another provider in the region that relies solely on its agent network to provide quotes and manage policies. Erie has unique endorsements that set it apart from other insurance companies that millennials might like. Erie car insurance provides coverage for pet owners who are millennials. It covers up to $500 in vet bills if your pet gets hurt in an accident.
Erie also offers the Rate Lock feature. This ensures that your premium doesn’t change unless you make any changes to your policy like adding or taking away a vehicle or adding or taking out a driver, or changing your coverage limits.
Amica — Great choice for all millennials
Amica is a good option for millennials because of its affordable premiums and the wide range of discount options. Amica ranks second in 2020 J.D.’s customer satisfaction survey. Power U.S. Auto Claims Satisfaction Survey.
The Amica app is a great option for millennials who want to be able to access their policy information and file claims. Amica’s legacy discount is available to younger millennials under 30 who have not yet been covered by their parents’ car insurance.
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. There are many ways that millennials can save money on their auto insurance.
- Comparison shoppingIt is important to compare multiple providers. Insurance premiums can vary widely between carriers. Comparing quotes from several companies will help you find the right coverage for you.
- Get discountsAsk your agent for details about discounts and visit the company’s website to find out more. Many companies offer discounts that help policyholders reduce their premiums, from paying in full to receiving paperless statements to paying in full.
- Credit score improvement:In most states, your credit score can impact the cost of your car insurance premiums. Drivers who have a good credit ratingLow creditCar insurance companies charge higher premiums to compensate for the fact that they may be more likely than others to file a claim. You may be able to save money on car insurance if you have a better credit rating.
- Safe driving habitsPremiums are affected by your driving record. The more driving activity you have, the higher your car insurance premiums. If you can avoidTraffic violations and accidentsYou may be able avoid any premium increases.
Insurance companies also consider your marital status, age, gender, location, vehicle, driving record, and marital status when they calculate your premium. With this many variables, reaching out to several carriers to compare coverage and price could help you find the policy that suits you best.
Questions frequently asked
How do I get auto insurance if I lease or finance a car?
Your finance company may have additional insurance requirements. Most lenders require that you carry collision and comprehensive insurance, often called “full coverage.” If you lease a vehicle, some dealers may require you to purchase gap insurance. If your vehicle is damaged in an accident, this covers the difference between your current owes and the vehicle’s value.
What level of liability protection do I need?
Almost all states require a level of minimum liability coverage, both for bodily injuries and property damage. Although the minimum liability limits can keep your premiums low, they may not provide enough protection in the event you are injured in an accident. You will be responsible for any excess damages incurred in an accident at fault that exceeds the limits of your auto insurance. A licensed agent can help you determine the right coverage for you.
How can I find the best car coverage for me?
One of the best methods for finding affordable car insurance is to compare multiple carriers. You will be able to compare the coverage options offered by different companies and what discounts might apply. It is also worth looking for quotes from carriers that have strong customer service ratings and financial strength ratings.
What is the most expensive age for car insurance?
Car insurance is generally most expensive for teen drivers because they are the least experienced behind the wheel. Young drivers who keep a clean driving record can expect to see their premiums drop as they age and gain more experience and confidence while driving.