Best Auto Insurance for Millennials in 2024 (Find the Top 10 Providers Here)

Geico, Progressive, and State Farm offer the best auto insurance for millennials because of their competitive rates, strong telematics programs, robust digital tools, and excellent discount options that millennials love.

While there are many factors that affect auto insurance rates, millennials usually enjoy low rates due to their age. However, they can save even more by taking advantage of discounts for things like being a safe driver, a homeowner, and for driving a new car. The best auto insurance companies for millennials also include a usage-based insurance program.

Our Top 10 Company Picks: Best Auto Insurance for Millennials

Read on to explore options for the best car insurance for millennials, including features like the lowest rates, best policy features, and highest number of discounts.

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#1 – Geico: Top Pick Overall

Pros

• Digital tools: Millennials looking to modernize their insurance experience will be pleased with Geico’s user-friendly website and app.
• Low rates: Geico consistently scores as one of the cheapest insurance providers in all states.
• 24/7 customer service: You can call Geico’s customer service hotline any time of the day or night to get help.
• Excellent discount options: Geico offers 16 discounts, including savings for being a good driver and bundling Geico policies.
• DriveEasy program: DriveEasy is Geico’s usage-based car insurance (UBI) program that tracks your driving behaviors. Safe drivers can save up to 25% by consistently practicing safe habits.

Cons

• Limited local agents: Geico focuses more on its online experience, so finding a local agent for face-to-face help can be difficult.
• DriveEasy can raise your rates: Many UBI programs guarantee that your rates will never increase, but unsafe drivers might see their premiums go up with DriveEasy. Read our Geico auto insurance review to see if DriveEasy is right for you.

#2 – Progressive: Best for Millennials on a Budget

Pros

• Snapshot program: Snapshot is one of the highest-rated UBI programs because of how easy it is to use. The average millennial saves $156 per year using Snapshot.
• Name Your Price Tool: If you already have a monthly budget picked out for your insurance, Progressive’s Name Your Price tool can tell you exactly how much coverage you can get. Explore other ways to keep to your budget in our Progressive auto insurance review.
• Ample discounts: Progressive offers 13 discounts to help keep your rates low, including savings for being a homeowner, a loyal customer, and an accident-free driver.
• Excellent coverage options: Progressive can insure just about anything important to you, making it easy to bundle different policies with the same company.

Cons

• Some discounts depend on tracking: Some companies that offer UBI discounts only track your habits for a limited time, but you’ll lose your savings if you decide to turn Snapshot off.
• Limited coverage for classic and luxury cars: Progressive is great for adding coverage to motorcycles and RVs, but you’ll find better policies elsewhere if you have a luxury or classic vehicle.

#3 – State Farm: Best for a Personalized Experience

Pros

• Highly rated mobile app: You can use State Farm’s mobile app to request new policy quotes, start claims, make payments, see policy documents, and download digital ID cards.
• Drive Safe and Save program: You can save up to 30% by enrolling in State Farm’s Drive Safe and Save program. This UBI program is not a good idea for high-mileage drivers.
• Large network of local agents: State Farm depends on local agents to sell policies and manage customers. If you prefer working with a person rather than going online, State Farm is right for you.
• Tons of discounts: State Farm has 13 discounts to take advantage of, including savings for insuring multiple vehicles and having safety equipment installed in your vehicle.

Cons

• Rates can be high for some drivers: State Farm is usually an affordable option for insurance, but you’ll probably find cheaper if your credit score is on the low side. Get pricing information in our State Farm auto insurance review.
• Limited online quote options: State Farm’s dependence on local agents is a drawback for more technologically minded drivers, as signing up for a policy online isn’t always an option.
• No gap insurance: Drivers with a new car typically purchase gap insurance to protect themselves against underwater loans. However, you can’t buy this coverage as a State Farm policyholder.

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#4 – Allstate: Best for Usage-Based Insurance

Pros

• Accident forgiveness: Allstate offers an affordable accident forgiveness add-on that protects you from rate increases after your first at-fault accident every three years.
• Deductible rewards: Sign up for Allstate’s deductible rewards program to get your deductible decreased by $100 immediately. Every year you spend accident-free deducts another $100, for a total of $500.
• Drivewise program: At a massive 40%, Allstate offers one of the most significant UBI discounts with Drivewise.
• Milewise program: If you drive 7,500 miles per year or fewer, you might find significant savings through Allstate’s low-mileage program, Milewise.

Cons

• Higher average rates: Regardless of the driver, Allstate is one of the most expensive options for car insurance. Find more information about Allstate’s rates in our review of Allstate insurance.
• Limited savings with discounts: Allstate offers a decent selection of 12 discounts, but many do not offer as deep a savings as similar options at other companies.
• Claims handling reviews: Allstate typically gets positive customer reviews except for its claims handling process. Many policyholders express dissatisfaction with how their claim was resolved.

#5 – Nationwide: Best Deductibles

Pros

• On Your Side Review: Take advantage of a periodic review with a Nationwide agent to ensure your policy still meets all your needs, including if you might benefit from add-ons. Explore more add-on options in our Nationwide auto insurance review.
• Vanishing deductible program: Enjoy $100 off your comprehensive and collision deductibles for every year you spend accident-free, up to $500.
• SmartRide program: Nationwide also offers a large UBI discount with SmartRide. As long as you drive safely, you can save up to 40%.
• Effective discounts: While it only has 11 discounts, you can earn serious savings with Nationwide’s discounts, particularly with the low-mileage and multi-policy discounts.

Cons

• Limited local agents: Nationwide doesn’t have the largest network of agents, so finding personalized help can be difficult.
• Rates can be high for some drivers: Nationwide’s minimum insurance rates are usually higher than the national average. Additionally, drivers with a DUI should look elsewhere.
• Digital tools are lacking: Despite relying on its digital presence, many customers say that Nationwide’s website does not function as well as expected.

#6 – USAA: Best for Military Members

Pros

• Top-rated customer service: USAA consistently ranks high in every category of customer satisfaction, including customer service experiences and claims resolution.
• Low rates: No matter who the driver is, USAA almost always has the lowest rates in every state. Find out why USAA ranks among the cheapest providers in our USAA auto insurance review.
• Military-specific discounts: As a provider of insurance for military members and their families, USAA adds military-specific savings to their list of discounts.
• Unique perks: USAA members gain access to more than just insurance. You can also use USAA’s financial services for banking, retirement, and loan options.

Cons

• Membership required: Only active or retired military members and their direct families are eligible for USAA membership.
• Some coverage options lacking: USAA doesn’t sell every type of insurance you might want, particularly gap coverage.
• Limited physical locations: As a smaller provider, brick-and-mortar locations are few and far between.

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#7 – Liberty Mutual: Best for Coverage Options

Pros

• RightTrack program: Save up to 30% on your insurance by enrolling in RightTrack and driving safely. However, RightTrack is only available in 41 states.
• 24-hour claims assistance: Liberty Mutual makes starting a claim easy no matter the time of day. You can reach help through the Liberty Mutual app or by calling the claims phone number. Learn more about this provider in our thorough Liberty Mutual company review.
• Hard-to-find coverage options: Aside from standard options, Liberty Mutual also offers hard-to-find options like new car or better car replacement coverage.
• Excellent discount availability: With 17 discounts, Liberty Mutual makes saving easy for everyone.

Cons

• Limited local agents: Liberty Mutual doesn’t have the biggest network of local agents, which can make finding help from a person difficult.
• Rates can be high: Liberty Mutual rates typically stay close to the national average, but drivers with a DUI will see particularly high prices.

#8 – Farmers Insurance: Best for Safe Driving Discounts

Pros

• Signal app: The Signal app is Farmers’ UBI program, which tracks your driving behaviors through your phone. The maximum savings with Signal is 15%.
• Reward program: Farmers incentivizes safe driving by offering a rewards program. Earn points for your safe driving, which can be used to buy gift cards and merchandise.
• Safe driver discounts: Aside from the Signal app, Farmers offers several additional discounts for safe drivers to lower their rates.
• Personalized help: Getting personalized help on your policy with one of Farmers’ local agents.

Cons

• Availability varies by location: Farmers sells insurance in all 50 states, but coverage options, discounts, and the rewards program availability vary by location. Explore coverage availability in our Farmers auto insurance review.
• Limited online quote options: Getting a quote and buying a policy online is more difficult than many of Liberty Mutual’s more digital competitors.

#9 – Travelers: Best Opportunities to Save

Pros

• Claims resolution: Travelers earns praise from policyholders for the speed and effectiveness of its claims resolution process.
• IntelliDrive program: Travelers’ UBI program IntelliDrive offers a maximum savings of 30% for safe drivers.
• Competitive rates: While not usually the cheapest option, Travelers offers competitive rates for most drivers.
• Numerous discounts: With 23 discounts, Travelers offers one of the most extensive lists of discounts of any provider.

Cons

• Coverage options lacking: While you can buy a standard policy that covers most car insurance needs from Travelers, it lacks the add-on selection of other companies.
• Limited availability: Travelers only sells car insurance in 42 states. See if your state is covered in our review of Travelers auto insurance.

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#10 – American Automobile Association (AAA): Best for Roadside Assistance

Pros

• Loyalty discounts: With 17 discounts, there are plenty of ways for AAA members to save on their policy. AAA offers unique discounts like savings for your car passing an AAA safety inspection and for being a college graduate.
• Extensive roadside assistance coverage: AAA is known primarily for having some of the best roadside assistance plans, so it should be no surprise that policyholders enjoy it. Learn more about AAA roadside assistance in our review of AAA insurance.
• Unique perks: AAA members not only get access to roadside assistance and multiple discounts, they can also take advantage of AAA’s member perks. Perks include discounts for shopping, travel, dining, and more.

Cons

• Membership required: Only AAA members are eligible to buy a car insurance policy. Membership costs are relatively affordable, generally costing between $65 and $125 per year.
• Regional variations: AAA members form clubs around the country. Your coverage and discount options depend on which club you join.

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.

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. Check the rates below to see what you might pay in your state.

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.

Usage-Based Auto Insurance for Millennials

Usage-based auto insurance policies from companies like Root, Metromile, and Lemonade 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. If you’re interested in UBI, most companies allow you to sign up while you’re getting your initial quote.

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

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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 cheap 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 millennials.

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