Millennials — the generation of people born roughly between 1981 and 1995 — were once considered the most under-insured generation. But much has changed for Gen Y in the past decade, and while millennials no longer wear the badge of “least insured,” they still experience significant pressures like rising housing costs, student loan debt, and inflation, making financial stability a high priority.
If you’re part of this generation, you likely feel the impact of these challenges. You may also be in a pivotal period of planning big shifts in your career and personal life. In times of financial uncertainty and change, being properly insured is the safety net you need to protect both your assets and your peace of mind.
Here we’ll share our top five tips to help you navigate your insurance coverage options as a millennial, so you can plan for future financial success.
1. Know your coverage options.
Before you purchase any insurance, you need to understand the basics so you know which policies will serve you best. Let’s break down some of the most common types of insurance and what each has to offer.
Auto insurance
Auto insurance protects you against losses in the event of accident or theft. If you drive a car, auto insurance isn’t just nice to have — it’s mandatory. But did you know you can tailor your policy and only pay for features you need?
Beyond core policies like liability, collision, and comprehensive coverage, most insurers also provide helpful policy add-ons so you can tweak coverage to fit your needs and lifestyle. These may include roadside assistance, loan/lease gap coverage, and even pet injury coverage.
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Renters' insurance
Due to the rising costs of home ownership, about 48% of millennials choose to rent. Some rental properties may require renters' insurance as part of a lease agreement, but even if it’s not required, renters' insurance is an affordable and highly recommended investment to ensure your belongings are protected.
Basic renters' insurance covers losses due to damage, theft, or other unforeseen issues. It even covers personal property losses, including car break-ins and damage or theft to a storage unit, and you can also expand your policy to protect against identity theft and cyber attacks.
Another benefit of renters’ insurance is loss of use coverage, which pays for costs that may be incurred if you suddenly find your property uninhabitable. Sonja Todmann, Director of Property Product Development for Grange Insurance, explains: “If a covered event makes the rented premises unlivable and forces the policyholder to stay in a hotel for several days, loss of use coverage would pay for the hotel room costs.” There are some limitations to loss of use coverage, however, so always be sure to check with your agent to see what the parameters are.
Homeowners insurance
If you’ve taken the leap into homeownership, congratulations! You’ve joined ranks with about 55% of your fellow millennials who have chosen to invest in purchasing a home. Now it’s time to protect that investment with a homeowners insurance policy.
Homeowners insurance protects your property from damage caused by fire, storms, theft, and other covered perils. A standard policy typically includes dwelling coverage for the structure of your home, personal property coverage for your belongings, liability protection, and additional living expenses if your home becomes uninhabitable due to a covered loss.
Life insurance
Life insurance provides financial protection for your loved ones if something unexpected happens to you, helping cover expenses like mortgage payments, outstanding debts, funeral costs, and ongoing living expenses. This might not seem urgent when you're young and healthy, but it's actually one of the smartest investments millennials can make – and the younger you buy, the lower your premiums are.
Term life insurance is often the most affordable option for millennials, offering coverage for a specific period at a fixed premium. If you're single with no dependents, you might need less coverage, but if you're married, have children, or carry significant debt, a robust life insurance policy is essential.
2. Reassess during life transitions.
Major milestones often require you to reevaluate your coverage — not only to ensure you're adequately protected, but also to see if you qualify for new discounts. Review your insurance policies during these key life transitions:
Getting married
When you tie the knot, you're merging more than just lives — you're combining finances, assets, and responsibilities. Re-quote auto and home or renters' insurance to see if you qualify for bundled discounts or multi-policy savings.
Having a baby
If you haven’t invested in life insurance, adding to your family is the perfect time to do so. Calculate what it would take to replace your income, cover childcare costs, fund their education, and pay off your mortgage and other debts. If you already have life insurance, consider reassessing whether your coverage is sufficient.
Buying a home
Most mortgage lenders require you to have a homeowners policy in place before you purchase a new home, so if you're preparing to buy soon, now is the time to start shopping and comparing policies. Don't just settle for the minimum required coverage — think about replacement costs, your personal belongings, and liability protection.
Starting a business
Launching an entrepreneurial venture means you'll need business insurance to protect your company from liability claims, property damage, and other risks. Common types include general liability insurance, professional liability insurance, and commercial property insurance.
Adding a side gig
Many millennials supplement their income with side hustles like rideshare driving or food delivery. If you use your personal vehicle for commercial purposes, your standard auto insurance policy may not cover accidents that occur during business use.
"Most companies have a rideshare endorsement to fill in gaps in coverage that are not provided in the base policy,” says Matt Cavanaugh, Associate Vice President of Auto Product Development for Personal Lines at Grange Insurance. “What you deliver or who you deliver for sometimes matters, so contact your agent to make sure you have the right protection."
3. Ask for discounts.
If you’re a millennial trying to balance your finances, every area where you can save money counts. Thankfully, most insurers offer discounts that can reduce your premiums — you just need to ask for them.
Here are some common discounts to look for:
- Safe driver discounts for drivers with no accidents or violations
- Home security discounts on renters' or homeowners insurance when you install security systems, smoke detectors, or other home safety devices
- Professional association discounts for members of certain organizations or employers
- Loyalty discounts for long-time customers
- Paperless billing discounts for customers who “go green” with digital billing statements
If you’re not sure where to start, Matt Cavanaugh has a word of advice: “I would recommend calling your agent to do a policy review. It may make sense to increase deductibles, remove Comp/Collision on an older vehicle or remove other coverages you may no longer need. Bundling products with one company or taking advantage of discounts like a paperless discount can also help to lower your rate.”
4. Start planning early.
The earlier you start thinking about insurance, the better positioned you'll be to secure affordable rates and comprehensive coverage. This is especially true for life insurance, where premiums are based partly on your age and health status. Locking in coverage while you're young and healthy means lower monthly costs that remain fixed for the duration of your policy term.
Early planning also gives you time to build the right insurance portfolio gradually rather than scrambling to get coverage during a crisis or major life event. Start with the essentials — auto insurance if you drive, renters' or homeowners insurance, and basic life insurance — then add specialized coverage as your circumstances change.
5. Consult an independent agent.
Navigating the insurance landscape can be overwhelming, especially with so many providers, policy options, and coverage levels to choose from. That's where an independent insurance agent becomes invaluable.
Unlike agents who work for a single insurance company, independent agents represent multiple carriers and can shop around to find the best coverage at the most competitive rates. They take the time to understand your unique situation, explain your options in plain language, and help you make informed decisions.
An independent agent can also help you identify coverage gaps you might not have considered, bundle policies for maximum savings, and advocate for you during the claims process. Think of them as your personal insurance advisor — someone who's looking out for your best interests rather than pushing a specific company's products.
Whether you’re looking to save money or reassessing your coverage levels, it’s important to understand all your options. Find an agent who can help you explore the possibilities and help you choose confidently.
References
- Metonic
- Department of Labor
Coverages described herein may not be available in all states. Please contact a local independent Grange agent for complete details on coverages and discounts. If the policy coverage descriptions herein conflict with the language in the policy, the language in the policy applies. The material provided above is for informational, educational, or suggestion purposes and does not imply coverage. WE RESERVE THE RIGHT TO REFUSE TO QUOTE ANY INDIVIDUAL PREMIUM RATE FOR THE INSURANCE HEREIN ADVERTISED. Grange Insurance policies are underwritten by Grange Insurance Company, Trustgard Insurance Company, Grange Indemnity Insurance Company, Grange Insurance Company of Michigan and Grange Property & Casualty Insurance Company*. Not all companies are licensed in all states. *Not licensed in Pennsylvania.