Which age group pays the most for car insurance?

Of the age groups that Bankrate analyzed, 18-year-olds on their own policies pay the most for car insurance. Male drivers tend to pay more for their car insurance than female drivers, with 18-year-old males paying an average of $6,759 per year for full coverage compared to $6,218 per year for females. In general, teens and young drivers pay more for car insurance, with premium prices falling as they get older. With a clean driving record, car insurance costs usually continue to drop until drivers reach their 70s, when rates tend to climb again.

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 totaled in an accident.

How much liability coverage do I need?

Car insurance is legally required in almost every state, but each state sets its own minimum liability requirements. While minimum coverage may make for a cheaper policy, it may leave you vulnerable to significant out-of-pocket expenses if you’re at fault in the accident. For instance, if you’re at fault and the damage you cause to the other vehicle exceeds your property damage liability limit, you will probably be responsible for paying the difference. For this reason, you may want to consider purchasing more than your state’s minimum liability requirements. You might find it helpful to speak with your agent for more information.

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.

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Best car insurance for millennials

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Updated Nov 08, 2024

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Best millennial car insurance

Most states require drivers to carry at least a minimum amount of car insurance. Car insurance helps provide financial protection if you damage property or injure someone in a car accident. You can also purchase optional collision and comprehensive coverage for added financial protection if your own vehicle is damaged. Insurance is an important part of personal financial planning, 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 auto insurance companies. These carriers were chosen because they offer a broad range of coverage choices and discounts, have competitive rates and score highly for customer satisfaction and financial strength. Additionally, these companies offer digital and mobile tools, which millennials may find particularly appealing. The data below represents the average annual full coverage premium for each company on our list. While your rates will vary based on factors such as state regulations, your driving history and other individual factors, this information can be used to gauge what your premium might be.


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 with Amica, 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, according to the 2023 J.D. Power U.S. Auto Claims Satisfaction Study. After purchasing a policy, policyholders have access to an online portal and mobile app for policy management, as well as filing claims and requesting roadside assistance.

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 in 2024.

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. However, Geico is considered a direct writer and has fewer in-person agencies than other major insurers. Depending on the nature of your millennial car insurance needs, and how complex they might be, you may prefer to work with a licensed local agent who can partner with you to build a robust insurance plan.

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 $2,314 per year for full coverage and $644 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: Utilizing discounts may be one of the easiest ways to get the cheapest rates. From paying in full to obtaining 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.
Increase your credit score: 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 (CA, HI, MA, MI) do not allow insurers to use credit history as a car insurance rating factor.
Practice safe driving habits: Your motor vehicle record is a major factor in determining 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 can avoid the corresponding premium increases.

Insurance companies typically consider other factors when generating your premium: your age and gender (in most states), location, vehicle make and model, annual miles driven, claim history and marital status (except in HI and MI). 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, 18-year-olds on their own policies pay the most for car insurance. Male drivers tend to pay more for their car insurance than female drivers, with 18-year-old males paying an average of $6,759 per year for full coverage compared to $6,218 per year for females. In general, teens and young drivers pay more for car insurance, with premium prices falling as they get older. With a clean driving record, car insurance costs usually continue to drop until drivers reach their 70s, when rates tend to climb again.
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 totaled in an accident.
Car insurance is legally required in almost every state, but each state sets its own minimum liability requirements. While minimum coverage may make for a cheaper policy, it may leave you vulnerable to significant out-of-pocket expenses if you’re at fault in the accident. For instance, if you’re at fault and the damage you cause to the other vehicle exceeds your property damage liability limit, you will probably be responsible for paying the difference. For this reason, you may want to consider purchasing more than your state’s minimum liability requirements. You might find it helpful to speak with your agent for more information.
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.

Methodology

Bankrate utilizes Quadrant Information Services to analyze April 2024 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.

Written by

Jessica Gibson

Contributor, Insurance