Which age group pays the most for car insurance?

Of the age groups that Bankrate analyzed, Gen Z pays the most for car insurance, with average rates as high as $7,310 per year for 18-year-olds on their own policy. For millennials, average rates are considerably lower thanks to more experience on the road. On average, millennials pay $2,721 per year for full coverage car insurance.

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

Your finance company or lessor 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 newly leased vehicle if your car is deemed a total loss.

How much liability coverage do I need?

Each state sets its own minimum liability requirements (with the exception of New Hampshire, which has none), but experts typically recommend carrying more than your state’s minimum required liability insurance. While minimum coverage may make for a cheaper policy, it may leave you vulnerable to significant out-of-pocket expenses or lawsuits if you’re at fault in the accident. You may want to speak with your insurance agent to nail down the best level of liability coverage, but a good starting point is to consider your assets and future income when selecting a coverage limit.

How do I find the best car insurance for me?

Before looking for the best car insurance company for your specific needs, you may want to determine your priorities first. Are you looking for the cheapest rates? Do you have a few blemishes on your record, leading you to need high-risk auto insurance? Perhaps you’re willing to spend a little more for a company with high third-party customer satisfaction scores. Knowing what you need from your insurance company may help guide you to the best carrier and streamline the shopping process by helping you narrow down the companies from which to request quotes.

Should I shop for new car insurance when I get married?

In most states, marital status can impact car insurance rates, with married drivers paying 7 percent less, on average, for full coverage insurance than a single 40-year-old driver. This is because married drivers statistically file fewer claims than non-married drivers. Marriage may also mean a change in your household makeup, which is another good reason to shop around for car insurance. It’s worth comparing rates when you tie the knot to see if you’re eligible for more affordable coverage or better service from a different carrier.

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Best car insurance for millennials

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Updated Jan 13, 2025

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Best millennial car insurance

Insurance is an important part of personal financial planning, so choosing the best company for your needs is crucial. For millennials, that usually means finding a reliable insurer that offers the coverage you need without compromising your budget or sacrificing customer service.

Bankrate uses Quadrant Information Services to obtain up-to-date premium information from a wide range of auto insurance companies. We highlighted these carriers as the best car insurance for millennials because they offer a broad range of coverage choices and discounts, have competitive rates and score highly for customer satisfaction and financial strength. While your premiums will vary based on factors such as state regulations, your driving history and other individual factors, the average annual full coverage rates shown below can be used to gauge what your rates might be.

To provide a point of reference, the average annual cost of full coverage car insurance is $2,813 for a 30-year-old, $2,711 for a 35-year-old and $2,638 for a 40-year-old.


Amica	$3,016	$2,996	$2,917
Auto-Owners	$1,823	$1,779	$1,775
Erie	$2,314	$2,184	$2,127
Geico	$2,170	$2,136	$2,107
USAA	$2,194	$2,091	$1,992

Amica earned the 2024 Bankrate Award for Best Auto Insurance Company Overall (tie) and Best Company for Customer Service. 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 needed. Policyholders may also qualify for Amica’s legacy discount, which is extended to drivers who stick with Amica after coming off their parents’ car insurance policy. However, like some other carriers on this list, Amica has few local offices, which may dissuade millennials who prefer to handle their insurance business in person. To discuss a quote or purchase coverage, those interested can contact Amica over the phone or by visiting www.amica.com.

Although Auto-Owners only offers coverage in 26 states, its rates are competitive. In fact, Auto-Owners tied for the 2024 Bankrate Award for Best Budget Auto Insurance Company. The company also boasts high customer satisfaction ratings, with above-average ratings in three out of five regions in the 2024 J.D. Power U.S. Auto Insurance Study. However, this particular carrier may be a better fit for millennials who prefer an old-school approach to car insurance: while Auto-Owners has a robust network of independent local agents, its digital tools fall behind the competition in customer ratings.

Erie is a regional carrier that offers unique policy endorsements that may set it apart from other insurers. For millennials who own pets, Erie car insurance offers coverage that pays up to $500 toward vet bills if your pet is injured in 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 in some of its coverage areas, which may keep your rates stable over time as long as you do not make changes to your policy, like adding or removing a vehicle, adding or removing a driver or changing your coverage limits. This may be a feature worth considering as car insurance rates continue to rise.

Geico earned not one but three 2024 Bankrate Awards: Best Auto Insurance Company Overall (tie), Best Budget Auto Insurance Company and Best Company for Young Drivers. In addition to a long list of discounts, Geico also offers customizable coverage 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. Policyholders can also pay bills, file claims and add vehicles on its website. If you’re looking for a policy you can manage quickly from your phone, Geico may be a good choice — but if you prefer to work with a local agent, you may find limited options available.

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 benefit millennial military members and their families, including reducing your premiums if you are deployed and not using your vehicle.

On top of its competitive rates, USAA offers discounts which may further reduce premiums. These discounts include premium savings for policy bundling, safe drivers and new vehicles. You may earn additional savings based on your years of service.

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Cheap car insurance for millennials

For millennials, who may be dealing with student loan debt and other financial obligations, finding cheap car insurance may be as important as finding the best car insurance. The average cost of car insurance is $2,638 per year for full coverage and $767 per year for minimum coverage. Fortunately, there are several ways to save on auto insurance, including:

Shop around: 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. Use the same coverage types and amounts when requesting quotes, so you can do an apples-to-apples comparison.
Take advantage of discounts: Adding discounts to your policy may be one of the easiest ways to get the cheapest rates. From paying in full to opting for 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.
Improve your credit: Your credit-based insurance score can affect 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. Be aware that some states (California, Hawaii, Michigan and Massachusetts) do not allow insurers to use credit history as a car insurance rating factor.
Practice safe driving habits: Drivers with clean driving histories typically qualify for the lowest rates, since they present the lowest risk of future claims. If you end up with a ticket or at-fault accident on your record, you could see your premium increase.

Insurance companies typically consider other factors when generating your premium. In most states, your age, gender, location, vehicle make and model, annual miles driven, claim history and marital status will all factor into your rates. 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

Of the age groups that Bankrate analyzed, Gen Z pays the most for car insurance, with average rates as high as $7,310 per year for 18-year-olds on their own policy. For millennials, average rates are considerably lower thanks to more experience on the road. On average, millennials pay $2,721 per year for full coverage car insurance.
Your finance company or lessor 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 newly leased vehicle if your car is deemed a total loss.
Each state sets its own minimum liability requirements (with the exception of New Hampshire, which has none), but experts typically recommend carrying more than your state’s minimum required liability insurance. While minimum coverage may make for a cheaper policy, it may leave you vulnerable to significant out-of-pocket expenses or lawsuits if you’re at fault in the accident. You may want to speak with your insurance agent to nail down the best level of liability coverage, but a good starting point is to consider your assets and future income when selecting a coverage limit.
Before looking for the best car insurance company for your specific needs, you may want to determine your priorities first. Are you looking for the cheapest rates? Do you have a few blemishes on your record, leading you to need high-risk auto insurance? Perhaps you’re willing to spend a little more for a company with high third-party customer satisfaction scores. Knowing what you need from your insurance company may help guide you to the best carrier and streamline the shopping process by helping you narrow down the companies from which to request quotes.
In most states, marital status can impact car insurance rates, with married drivers paying 7 percent less, on average, for full coverage insurance than a single 40-year-old driver. This is because married drivers statistically file fewer claims than non-married drivers. Marriage may also mean a change in your household makeup, which is another good reason to shop around for car insurance. It’s worth comparing rates when you tie the knot to see if you’re eligible for more affordable coverage or better service from a different carrier.

Methodology

Bankrate utilizes Quadrant Information Services to analyze January 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, 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 2022 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.

Age: Rates were calculated by evaluating our base profile with the ages 18, 30, 35 and 40 years (base) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Written by

R.E. Hawley

Senior writer, Insurance