Nearly One-Third of Gen Z Steers Clear of Car Insurance, Survey Finds

A significant share of American drivers have opted to avoid insuring the vehicles they drive amid the rising cost of living and shifting consumer habits, a recent survey finds.

Around 30% of Generation Z — people born between 1997 and 2012 — admitted to owning or driving an uninsured vehicle within the past six months, according to a survey TransUnion published Tuesday. While the reasoning by respondents vary, key factors involve shifting behaviors by consumers as well as the unpredictability of economic outlooks — including effects of the Iran War — making the true costs of car ownership undesirable.

As perhaps the most commonly experienced cost, the average price of a regular gallon of gasoline in the United States was roughly $4.07 at the time of publication, according to AAA.

The research was based “almost exclusively” off of TransUnion’s internal data. The global consumer credit reporting agency did not immediately respond to the Daily Caller News Foundation’s request for comment.

“We know affordability is a big challenge for Gen Z, and that certainly helps explain their lapses in coverage,” TransUnion senior director of strategic planning Patrick Foy stated in the report’s accompanying press release. “However, we don’t think that’s the whole story as more indicated that they simply chose not to renew their coverage than were unable to pay.”

Of the surveyed Zoomers who reported being uninsured, 28% stated they simply chose not to renew their coverage, 26% cited an inability to pay, 22% forgot to pay on time, 20% were dropped by their respective insurer, and 4% claimed other reasons.

Over 47% of car insurance policies were “shopped” at least once between 2024 and 2025, a record high, according to LexisNexis. The statistic suggests insurance subscribers are more willing to opt out of their policy to seek better pricing or communication than previously recorded.

Likewise, the median car insurance premium among drivers who switched insurers was $267 per month — $3,204 per year — as of Aug. 3, Forbes Advisor reported. For 18-year-olds, which includes Zoomers, the median monthly premium can hover at $565.

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