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You probably won’t be surprised when I say that, regardless of how much money I make, I’m always looking for new ways to save.
Shopping wisely for car insurance is one of them.
You’ll need to do tons of research to find the best deals, the most straightforward shopping experiences, and a company that takes excellent care of its policyholders when they need it.
That’s super important because, as you may know, Millennials overpay for car insurance anyway – so you’ll want to make sure that you get the best coverage possible for the money you invest.
Searching for the best car insurance options can be draining, and you probably don’t have time to plow through endless pages of information. Don’t worry – because I’ve done the research for you, and then compiled a list of 10 best car insurance companies for Millennials.
So, sit back, relax, and learn everything you need to know about finding the best car insurance.
Guide to The Best Car Insurance Companies:
Millennials are Overpaying for Auto Insurance
That’s quite a bit more – and avoiding higher premium costs isn’t something you can do. That said – ensuring that the insurance company you choose offers the best service, deals, discounts, and other perks can help you make the most of your car insurance, as well as make it more cost-effective.
Below you’ll see my list of the best car insurance companies. This should give you a better idea of what you can expect from each company.
10 Best Car Insurance Companies for Millennials in 2019
These top rated companies were selected based on J.D. Power’s 2019 Insurance Shopping Study, customer reviews, and personal experience to an extent.
I’ve talked about Metromile before – a pay per mile insurance which offers a low base rate with just a few pennies per mile.
Metromile is an excellent auto insurance company for those who only drive occasionally. They are also ahead of their competitors in terms of tech solutions.
To learn more, read my in-depth Metromile review.
- Great for occasional city drivers. If you drive fewer than 10,000 miles per year – you could save hundreds of dollars on car insurance.
- Tech-savvy solutions. Metromile’s mobile app allows you to check your mileage as well as many other cool things like finding your parked car, getting street sweeping alerts to avoid parking tickets, collecting and accessing data on your speed, distance and gas spend, and giving you updates on your car health. Pretty handy!
- Limited availability. Metromile is only available in Arizona, Illinois, California, New Jersey, Pennsylvania, Oregon, Virginia, and Washington
- Not as competitive for frequent drivers. You are unlikely to save much if you drive more than 10,000 miles per year.
Allstate is another excellent option for car insurance – and it’s one of the largest insurance companies in the U.S.
- Nifty mobile app. The app makes it easy to submit claims info – all you need to do is snap up a few pictures and send.
- Easy to get in touch with agents. Just chat with them on the app!
- Personalized insurance guidance. Insuring your car with Allstate means you will get customized help from an agent – something many other online-only insurers don’t offer.
- Discounts and bonuses. Allstate offers a long list of discounts on insurance premiums (like Safe Driving, Good Driver, Multiple Policy, etc.) – more discounts than the other 12 major national companies.
- Higher rates. Compared to insurers like Geico or Amica, Allstate offers higher rates.
- Not great if you have a poor credit score. If your credit score is poor, Amica would be better than Allstate.
- Not great if you have a bad record. Several other insurers (such as Amica or Geico) would be better than Allstate if you have a bad record.
Erie Insurance is an excellent choice when it comes to car insurance. It ranks high in customer satisfaction, price, policy offerings – and generally makes customers happy!
Interestingly, they were also the company that completely busted the myth that Millennials are not interested in cars: their research showed that 85% of Millennials who don’t have a car are planning to get one.
- Customer satisfaction. Erie Insurance ranks high in customer satisfaction – and knowing that other customers are satisfied is reassuring.
- Fewer customer complaints. Customers of Erie Insurance don’t seem to run into trouble as much. In 2018, it had fewer than the median number of complaints to state regulators.
- Locked auto insurance rate. Nobody likes increasing car insurance premiums. With Erie, it won’t change unless you add or remove cars or drivers.
- Limited availability. Erie Insurance only operates in 12 states – Indiana, Illinois, Maryland, Kentucky, New York, Ohio, North Carolina, Tennessee, Pennsylvania, Virginia, West Virginia, Wisconsin, and some parts of the District of Columbia. If you don’t live within these states, tough luck (and a shame).
- No smartphone app. Sadly, there’s no smartphone app. For me personally, knowing that I can sort my insurance out on an app is very important – but that may not be the case for everyone. On the other hand, – the website is pretty handy.
Amica Mutual Insurance
According to J.D. Power’s Insurance Shopping Study 2019, Amica ranks high in all aspects – including website and policy offerings. It may not be among the largest insurers of the nation, but it is definitely mighty in terms of customer satisfaction!
- Customer Satisfaction. It consistently ranks high in terms of customer satisfaction.
- Amica offers some great discounts, such as loyalty, claim-free driving, and E-discounts (e.g., when you pay your bills electronically).
- Attractive built-in perks. Free lock replacement if you lose your keys (happens, right?), free repair of an airbag if it explodes, and more.
- There are no repair facility restrictions. You can use any shop for repairs.
- A variety of coverage options. Amica has one of the most extensive selections of driver and vehicle coverages – many of which aren’t offered by other car insurance companies.
- No online quotes. You can start entering your details for a quote online, but with Amica, you will have to get on the phone to get an official quote in the end.
- Expensive for the first year. Because Amica is a mutual company, the first year can be costly.
- The app doesn’t have a very high rating. They could probably up their game with their app a bit.
Are you a tech lover? Then Geico may be just the insurer for you. Not only do they delight us with quirky commercials you probably have already seen, but they also offer competitive prices – and quick service.
Because who wants to waste time getting insurance when you could be spending that time growing your side hustle?
- Superior app. The Geico app receives a lot of praise. The app makes it super easy to reach an agent, get a quote, manage your insurance, and make payments.
- Plenty of discounts. There are plenty of discounts to choose from – from multi-vehicle to equipment. And, if you’re in the military or federal employment, you could get additional offers.
- Digital-only experience. With Geico, you’ll get a smooth and quick digital experience – but if you’re looking to deal with an agent in person who will be there to solve all your insurance problems, Geico won’t really offer you that.
- Not great for drivers who have had an at-fault accident within five years. If that’s you, you may want to look elsewhere. Geico provides higher quotes for higher-risk drivers than other insurers.
Clearcover may not appear in the list of major car insurers – but this innovative company does challenge auto insurance giants!
- Uses AI to keep costs down. They offer some great prices – all thanks to artificial intelligence which they use to market their car insurance.
- Quick insurance progress. They understand that time is precious – and you can really get insured in minutes, over the app.
- Great online-only experience. If you’re looking for smooth online-only experience, Clearcover is excellent for that.
- Limited availability. Clearcover is only available to drivers in California.
- Online only. Again, that could be a con for someone who is looking to meet with an agent to discuss the most suitable options for them. The experience is mostly online.
- New company. This could be a con to some people because new often is associated with “lack of expertise.” However, even though Clearcover was only founded in 2016, they are definitely challenging the old-school ways of buying car insurance by offering quick and affordable quotes.
- Only sells car insurance. Unlike many other auto insurers which also sell different types of insurance, Clearcover doesn’t. This means you won’t be able to bundle up your policies together, which may sometimes be a convenient way to get a discount.
Like cutting-edge apps? Esurance may be a car insurer worth considering then.
- User-friendly website. Esurance is known for its user-friendly website.
- Cutting-edge apps. Esurance has apps like DriveSense which allow drivers in 37 states to track driving behavior (e.g., speed time of day you drive, and hard braking). And – if you’re a good driver – you get rewarded with policy discounts.
- Allows you to manage your own policies. Like being in control? Esurance sounds like the right car insurance company for you.
- Widely available. What’s great about Esurance is that it’s available in 43 states, which makes things easy.
- Pay Per Mile program. This program is available in Oregon only, but it does make things cheaper if you don’t drive very much.
- No in-person customer service. Again, if you’re looking for an agent you can meet and discuss your options – you won’t really find that with Esurance.
- Higher rates. Esurance rates are higher than average, which means your pockets may be emptier than usual. It does offer an excellent user experience – but that comes at a price.
If you live in New Jersey or Pennsylvania, NJM may be an excellent option to think about.
It receives great ratings when it comes to customer satisfaction and value.
- Competitive prices. NJM offers affordable premiums.
- High customer satisfaction. Generally, NJM receives great reviews from its users (especially when it comes to claims processing and coverage).
- Great for young drivers. NJM offer cheaper sample premiums for young and single males.
- Cheapest for drivers with poor credit. The premiums offered to those with poor credit are more affordable than the ones provided by Geico.
- Great for those with one at-fault crash. If that’s you, NJM may also be one of the best companies to insure with. They won’t charge you more than they charge good drivers.
- Excellent claims experience. NJM was the first company to receive D. Power’s Claims Certification. The certification recognizes brands that provide exceptional claims experience – so you know you’d receive outstanding service in that area!
- NJM insurance is only available to employees of specific organizations.
- Limited to certain areas. NJM is also available in New Jersey and Pennsylvania.
21st Century Insurance
21st Century Insurance is a smaller company, which doesn’t offer many perks with its policies.
Now, that could also be a good thing – because that may keep the costs down. Although that’s not the case with every profile.
- Versatile app. The app may not be very slick – but it does have the features you’d expect. You can view your policy documents, pay your bills, view insurance IDs, and file claims. What more could you want? Oh, and the app allows you to call roadside assistance when in trouble.
- Good rates for those with poor credit. On average, 21st Century Insurance offers cheaper deals than many other insurers to those with credit scores of less than 580.
- Limited availability. 21st Century only offers policies to drivers in California (and Hawaii).
- No online claims. If you want to file a claim, you’ll have to ring a phone number and actually speak to a person. I know – how old-school.
Last but not least, Mercury Insurance is known for its affordable auto insurance rates, which may be great for those who prioritize getting a low price.
That said, based on the reviews I’ve read, customer service may not be the best – and submitting a claim could be a long and tricky process.
- Affordable rates for young drivers. Mercury Insurance offers some of the most affordable auto insurance rates for young drivers.
- Mechanical Protection Plan. Mercury Insurance also offers mechanical protection, which includes things like 24-hour roadside assistance, rental car assistance, and others.
- Spotty customer service. Let’s just say that Mercury Insurance doesn’t offer the best customer service in the market.
- Basic coverage options and discounts. Mercury Insurance offers only a small number of coverage options. I guess that’s the price you pay for lower rates.
- Bad rep. Yes, they offer low prices – but if you search for reviews of Mercury Insurance online, you’re bound to come across some pretty insulting reviews. Whether you decide to use them for the lower price is entirely up to you – but be aware that it doesn’t have the best reputation.
Liability Car Insurance is Mandatory
Regardless of what you might look for in car insurance, in all states, you are required to have mandatory liability insurance coverage. Some states may also require personal injury protection and uninsured motorist coverage.
If you’re unsure about what car insurance is required in your state, take a look at these minimum requirements for your state to make sure you’re covered.
Pick The Best Company for Your Needs
When it comes to car insurance, there is no single best company to use. Coverage costs vary greatly depending on your location, as well as many other factors.
Here’s what you need to do to make sure you are with the best car insurance plan for you:
- Shop Around: Happy with your insurer now? Great! But that doesn’t mean you shouldn’t shop around every year or two. In fact, there’s a little trick many insurers use, called price optimization. That essentially means insurers may set rates based on how much they think a customer is happy to pay. How do they know that? That’s where it gets pretty scary – they know that from your social media posts, credit scores, and even shopping habits. But what you can do is to shop for new policies every couple of years online. They will most likely see this online activity – and that will keep them on their toes.
- Decide What’s Important: Is it keeping the costs to a minimum? Is it the types of coverage offered – or perhaps that the company has an easy-to-use app because you don’t have time to be discussing your options over the phone? Consider these factors before you look for car insurance because they can help you rule out the options that aren’t suitable for your needs – and save you tons of time.
5 Tips to Save BIG on Car Insurance
And now – everyone wants to pay as little as possible for car insurance, right?
So, here are some tips that’ll help you keep the costs down:
- Shop around. That’s an obvious tip – but worth repeating!
- Compare prices BEFORE you purchase a car. As insurance premium costs vary by vehicle, make sure you know which types of cars to shop for to keep these costs to a minimum.
- Take advantage of affinity or employer discounts. Some employers belong to organizations that may help you get better car insurance offers for a lower cost – so it’s worth checking with your employer.
- Keep insurance in one place. Many companies offer great deals for bundling multiple policy types – such as renters, auto, and homeowners. Some offer discounts for having more than one policy with an insurer – so check to see whether that’s available.
- Maintain a solid credit score. That’s also a given. Maintaining a good credit score is important no matter what – but insurers often use credit-based insurance score which determines the rates they will offer. In other words, the better your credit score, the lower the costs.
Find The Best Deals on Auto Insurance Today
To sum up – there are plenty of companies that offer excellent car insurance options, but they all excel at different things. Some may provide stellar customer service – while others may offer low-cost options. Some are great for those who drive a lot – while others may be more suitable for those who only drive occasionally. While the price is important – look around for other factors, too, once you’ve decided what matters to you.
I hope that this review of the best car insurance companies for Millennials has given you a better idea about what you could expect from each. After all, with Millennials paying considerably more for car insurance, knowing exactly what you can get with your insurance provider, and how you could get the most out of your policy, is important.
My advice before purchasing car insurance is to shop around taking all these aspects into account. Look for the best deals. The most straightforward experiences. The best perks you can get for your custom! Only then commit to one company – but remember to keep them on their toes by shopping around every couple of years.
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