Millennials, also known as Generation Y, are the demographic sandwiched between Generation X and Generation Z. They are typically considered to be propleg born between 1981 to 1996. Most Millennials are the children of baby boomers and early Generation Xers. Today, most Millennials are between the ages of 25 and 40. They are working, raising young families, and likely driving almost everywhere they go. Many Millennials are on the lookout for the best car insurance. Whether you want better coverage or cheaper premiums, there are plenty of competitive offers to choose from. In this article, we look at the best car insurance for Millennials.
Clearcover Insurance is an innovative company that uses technology to save Millennials money on their automotive coverage. They cut out most of the marketing (and even real people). Instead, they use artificial intelligence to offer really cheap insurance rates.
You can apply for their car insurance using an online app. It will tell you almost instantly whether you qualify or not. Clearcover also lets you file claims using the same app. You can describe what happened and even upload photos or videos of any damage directly from your cellphone. They don’t even require an insurance adjuster when claims are filed!
Millennials who have dedicated their lives to public service should consider getting their car insurance from California Casualty. The company (that’s actually based in Colorado Springs, Colorado) offers special discounts to anyone who works as a first responders or are engaged in civic pursuits.
Firefighters, paramedics, nurses, police officers, educators, and certain college employees are all eligible to get significant discounts on their car insurance from California Casualty. Discounts can range from 10-to-25%, depending on your driving record. If you are a Millennial who work on the frontlines, you should definitely checkout California Casualty.
One of the secrets of the insurance industry is that your rate is based on your “insurance score.” This is a composite calculation based on a number of things. Your driving record, claims history, and credit score are all factored in. Unfortunately, most people have no idea what their insurance score is. Or how it’s calculated.
Since the insurance industry is happy to keep your score a secret, many Millennials are left wondering why their premiums are so high — especially if they have a fairly clean driving record. Say Insurance promises to demystify the process by revealing you insurance score when you apply. It will even offer tips on your could improve it. The better your score, the lower your premiums will be.
Metromile bills itself as “pay per mile car insurance.” It offers some of the best car insurance for Millennials who work from home, have a short commute, or simply prefer walking or biking to get where they are going. This low cost pay-per-mile insurance charges a base rate of $29 (and up) per month, plus a few cents for each mile driven.
Many Metromile customers end up paying $50 or less a month. The company also includes pet injury coverage with collision and comprehensive coverage on all of its policies. If you’ve recently embraced the work from home lifestyle and have no plans to go back to the office full time, consider Metromile. Why pay all that insurance for a car that barely leaves the parking spot anymore?
Amica Mutual Insurance
For sheer cost savings, it’s hard to beat Amica Mutual Insurance. It consistently ranks as one of the best insurance companies when it comes to customer service and satisfaction. Millennials will not only love the money they save with Amica, but also the money they get back.
Since it’s a mutual company, Amica is able to give its customers some money back every year in the form of a dividend payment. The company’s dividend policies typically pay 5-to-20% of your premiums back to you, annually. If you enjoy getting cashback rewards from your credit or insurance products, check Amica Mutual Insurance.
State Auto Insurance
For truly comprehensive coverage, look no further than State Auto Insurance. Surveys show that roughly 70% of Millennials own a pet. And almost every single Millennials owns a smartphone. State Auto protects them both (along with your vehicle, of course), at no extra cost.
State Auto’s “AutoXtended” policy not only protects the family pet in the event of an accident, it also covers damage to any phones. It will also cover emergency travel expenses, bail bonds, locksmith or key replacement, emergency ambulance transportation, and even disability coverage. Now that’s comprehensive coverage!
Insurance companies that rely on artificial intelligence might be good at providing cost savings. However, they can lack a human touch. After a stressful incident like a car crash, it can be helpful to have the guidance of a helpful human being.
Verti Insurance prides itself on offering car insurance in its home state of Pennsylvania. Not only do they have low premiums, but also a dedicated Personal Advisor service. It makes a real human available to phone, text, or email at any time — day or night. Verti also has a decent app, that provides one-tap access to help in an emergency. However, it’s their personal service that really shines.
Safeco is a highly rated insurance company that is actually owned by Liberty Mutual. It offers a lot of options, designed specifically to fit the lives of Millennials. Notably, safe drivers can save up to 30% with the company’s “RightTrack” policy. It’s a smartphone app that tracks your driving (acceleration, braking, total miles driven) and rewards safe drivers with lower rates.
Additionally, pet owners can add pet coverage to almost all Safeco policies. Part-time Uber and Lyft drivers can also get low-cost “RideSharing” coverage to protect themselves while using their vehicle as a source of income. With more Millennials embracing the “gig economy,” you may want to look into Safeco Insurance.
Root Insurance is all about the app. The company has developed a very advanced app, with lots of bells and whistles. Root Insurance’s app will track your driving habits, give you an instant quote, and lets your file claims directly and call roadside assistance.
Since the company only insures drivers it deems safe, their rates tend to be super low for those who qualify. Root Insurance says many of their customers save over 50% compared to their old insurance rates. That’s an average annual saving of $1,187. That’s a decent chunk of money for any Millennial. Just remember that you need a sparkling record in order to get this discount.
Good2Go Insurance provides affordable insurance for young drivers or those with banged-up driving records. Specializing in state-minimum insurance with low premiums and deductibles, Good2Go also offers a discount for those who use the “LifeSaver” distracted-driving app.
While not for everyone, Good2Go could be a great choice for younger Millennials with a limited driving history or a few accidents on their record already. Finding affordable car insurance after a few claims can be tough, so Good2Go might be exactly what you need.
Elephant is one of the best car insurance companies for cost conscious young drivers. They offer discounts that can reach as high as 40%, if you meet certain criteria. These discounts are given out for a variety of things, including going paperless, making on time payments, having a good driving record, and more.
Young drivers who are just starting out can save big bucks with Elephant Insurance. The discounts aren’t only based on your driving record or insurance score either, which is a great bonus. You can save money just by asking them to not mail you a paper statement every month or by always paying on time. That’s pretty sweet!
Texas-based Empower Insurance has been in business since 2003. The company is actually run by a group of Generation Z founders. However, it’s primarily focused on providing car insurance to Millennials — particularly those with bad credit.
Empower Insurance can provide you with coverage even if you have bad credit. That’s because the majority of their insurance polices don’t take your credit score into consideration when calculating premiums. They remove the credit check from the qualify process altogether. Although it’s a bit riskier, this approach allows Empower to insure those who might not otherwise qualify for affordable car insurance.
Lemonade Insurance is another newer company making waves. Like some others on this list, they save money by not having local offices. Instead, everything is done online. They’ve already impressed the Millennial market by offering home, life, renters, and pet insurance. Unfortunately, they aren’t quite ready to offer auto insurance too.
The good news, though, is that Lemonade car insurance is coming soon. Their website promises that they will be offering auto coverage in the near future. You can even sign up to get an email notification when it’s ready. If they can offer the same competitive pricing, online convenience, and quick claims and payout system with their upcoming car insurance offerings, Millennials will love Lemonade. Stay tuned!