Best car insurance for millennials

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 $2,874 for a 30-year-old, $2,771 for a 35-year-old and $2,692 for a 40-year-old.

Cheap car insurance for millennials

Millennials are between the ages of 29 and 44 in 2025, and many of them are raising families, paying off school debt and building their careers. Finding affordable car insurance is a high priority for this age group, and fortunately, there are strategies they can use to help them find the cheapest possible coverage. If you are a millennial, consider taking the following into consideration when shopping for the best car insurance:

• Shop around: Every insurer has its own proprietary algorithms to determine rates, so asking for quotes from a range of insurers is likely to net you different rates from each. From there, you can pick the company that offers you the lowest premium if affordable coverage is your highest priority.
• Look for discounts: Almost all insurers offer at least a few discounts, and they are often easy to earn. You may score some savings, for example, by agreeing to receive your policy documents via email rather than postal mail. Review your discounts prior to renewal time to see if there are any new ones you can take advantage of.
• Bundle your policies: If you are happy with your car insurance company, consider purchasing all your insurance — home, renters, life or any other type — from it as well. This is called "bundling," and often leads to a discount. 
• Drive safely: Few factors play as large a role in determining your premium rate as your driving record. You are likely to pay more if you have marks on your license, so it can pay off to work on your driving skills to ensure that you are safe on the road. If you could use a refresher, most states have defensive driving courses that can help — and may earn you a discount, as well. 
• Work on your credit: Statistically, drivers with good credit-based insurance scores file fewer claims on their policies. Because of this, insurers often reward them with lower rates. It can take time to improve your credit, but paying your bills on time and keeping consumer debt low can help.  
• Increase your deductible: If you have some types of coverage, such as collision and comprehensive, you have a deductible. Increasing this can lower your premium rate. But be careful that you only increase it to a level that you could easily pay if you need to file a claim on your policy.

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

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. These are sample rates and should only be used for comparative purposes. Your quotes will differ.

If otherwise specified, the base profile has been modified with the following driver characteristics:

Age: Rates were calculated by evaluating our base profile with the ages 20-70 (base: 40 years) 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.

Bankrate Score

Our 2025 Bankrate Score for auto insurance considers key variables that our insurance editorial team determined impact policyholders’ experiences with an insurance company. These factors include a robust assessment of each company’s cost of coverage, product availability, financial strength ratings, online capabilities and customer and claims support accessibility. We grouped these factors into three essential categories — cost and ratings, coverage and savings, and support — which we then weighted in a tiered approach. 

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto insurance companies satisfy these priorities, our team analyzed quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the National Association of Insurance Commissioners (NAIC). 
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated the discount options listed on each company’s website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored in a company’s corporate sustainability efforts.