Best Car Insurance for Millennials of 2026

Nationwide has some of the cheapest average auto insurance rates nationwide, at 25 percent less than the national average. It also has a solid customer service record, ranking above average for most regions in J.D. Power’s U.S. Auto Insurance Study.⁴

The company ranked first for usage-based insurance in the same study,⁵ making it a great choice for Millennials who want to enroll in a telematics program. This includes either of Nationwide’s two telematics programs, SmartRide and SmartMiles.

SmartRide provides a generous discount of up to 40 percent at renewal for safe driving and 15 percent just for signing up. Drivers with safe habits can see big savings with this program.

Meanwhile, SmartMiles is a pay-per-mile program designed for drivers who drive less than average, such as those who work from home and don’t have a commute. In fact, Nationwide SmartMiles made our list of the best pay-per-mile auto insurance. It charges you a monthly base rate, as well as a variable per-mile rate, so the less you drive, the less you pay. You also get a 10 percent discount at renewal if you drive safely.

Millennials who have recently purchased a home and are also looking for auto insurance should get a quote from Amica. The company is available in every state except Hawaii, as well as Washington, D.C. It has slightly below-average rates, but it really stands out when it comes to customer satisfaction.

Amica is only included in the New England region of J.D. Power’s Auto Insurance Study, but it ranked first — by far — scoring almost a hundred points higher than the second-place company. In addition, it ranked second in J.D. Power’s Auto Claims Satisfaction Study and first in J.D. Power’s U.S. Home Insurance Study,⁶ making it ideal for those who want to bundle home and auto.

Amica offers a discount of up to 30 percent for bundling auto policies with either home, life, or umbrella policies. It also has a homeowner discount, so you may get additional savings just for owning a home.

State Farm is our choice for the best rideshare auto insurance for Millennials doing gig work as rideshare or delivery drivers. It’s important to get additional auto insurance if you use your car for gig work since rideshare companies don’t cover you one hundred percent of the time you’re on the road, and your personal policy generally won’t cover you for incidents that occur while using your car for business.

State Farm has consistently high customer satisfaction ratings and affordable rates for drivers with clean records. With rideshare coverage, the limits and deductibles you have on your personal State Farm policy will also apply while you’re working for a transportation network company like Uber or Lyft or delivery services like DoorDash. Rideshare coverage with State Farm typically adds about 15 to 20 percent to your premium.

Prospective customers should be aware that policies are sold exclusively through agents, so while you can begin a quote online, you will need to speak with someone to complete the purchase process. The benefit of this is that you will have a dedicated agent you can reach out to with any questions or concerns. State Farm handles rideshare policies in-house, so you will always deal with the company directly for issues or claims that arise.

Erie Insurance is another highly-rated auto insurance company with competitive premiums — its average annual rate is 22 percent lower than the national average. When it comes to customer satisfaction, it ranked first in J.D. Power’s Claims Satisfaction Study and has an A- rating from the CRASH Network, the highest of any company on this list.

Erie is available in 12 states and Washington, D.C., so Millennials living in an area that the company services should consider getting a quote. While Erie is a great choice for many different types of drivers, it’s particularly well-suited to pet owners. Erie auto insurance policies include pet coverage, so if your pet is injured in an accident while riding in your car, Erie will help pay for vet treatment costs up to $500 per pet, for a total limit of $1,000.

Erie is also an excellent choice for renters. It scored just below Amica for renters insurance customer satisfaction, and tends to be more affordable.

Another perk that Erie offers is its Rate Lock option, which is particularly appealing as auto insurance rates continue to increase. With Rate Lock, your insurance won’t increase year over year, as long as you don’t make a major change to your policy, like adding a driver or moving. If you add coverage, you’ll pay more accordingly, but your rate won’t increase beyond that.

Millennial drivers with a DUI conviction should consider getting a quote from Progressive, which offers the most affordable average rates for this driver category. Its average annual premium is 16 percent cheaper than the national average for drivers with DUIs.

In addition to its competitive rates, Progressive offers a variety of discounts that can help you save even more on your auto insurance, particularly as a high-risk driver. These include discounts for bundling auto with other insurance types, insuring multiple cars, having continuous insurance, being a homeowner, and paying your premium in full.

Progressive also offers a telematics program, Snapshot, which rewards safe driving with a discount on your policy at your next renewal. While Progressive doesn’t advertise how much you can save percentage-wise, it states that the average discount at sign-up is $169 and $322 at program completion.⁸ In general, most telematics discounts are in the range of 20 to 30 percent off. If you’re confident in your ability to drive safely and avoid future violations, Progressive can be a great choice until the DUI expires from your record.