A TransUnion survey found about 30% of Generation Z respondents had owned or driven an uninsured vehicle during the previous six months, with voluntary nonrenewal, affordability problems and missed payments among the leading explanations.
By yourNEWS Media Newsroom
Nearly three in 10 Generation Z drivers say they have recently owned or operated a vehicle without insurance, according to new research highlighting how younger Americans are responding to the mounting expenses associated with driving and maintaining coverage.
About 30% of Gen Z respondents — the generation generally defined as those born from 1997 through 2012 — reported owning or driving an uninsured vehicle at some point during the preceding six months, according to a TransUnion survey released Tuesday and reported by the Daily Caller News Foundation.
The findings indicate that financial pressure is an important factor, but the reasons younger drivers allow their insurance coverage to lapse are more varied than an inability to afford premiums.
Among Gen Z respondents who said they had been uninsured, 28% said they made a deliberate decision not to renew their policy. Another 26% said they could not afford the coverage, while 22% said they failed to make a payment on time. Twenty percent reported that their insurer dropped them, and 4% cited another explanation.
The results add another dimension to changing financial behavior among Generation Z consumers, who are facing decisions about transportation expenses during a period of broader economic uncertainty.
“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.”
The survey findings come as the cost of auto insurance can represent a substantial monthly expense, particularly for the youngest drivers.
As of Aug. 3, the median premium among drivers who had switched insurance companies stood at $267 per month, or $3,204 annually, according to Forbes Advisor. For an 18-year-old driver — an age group falling within Gen Z — the median monthly premium can reach approximately $565.
Consumers have also become increasingly willing to compare insurers rather than automatically remain with their existing carriers.
More than 47% of auto insurance policies were “shopped” at least once from 2024 through 2025, the highest level on record, according to LexisNexis data. The figure reflects a growing tendency among policyholders to investigate competing coverage, pricing and service options.
For younger motorists, insurance represents only one part of the total cost of maintaining a vehicle.
The national average for a gallon of regular gasoline was approximately $4.07 at the time of publication, according to AAA, an increase of about 92 cents from the same period one year earlier.
Those expenses are unfolding amid a less predictable economic environment that has also been affected by developments including the Iran War, contributing to uncertainty surrounding household costs and the broader financial outlook.
Taken together, fuel, insurance and other vehicle-related expenses can make car ownership considerably more costly for young adults who may have less income and shorter credit histories than older motorists.
TransUnion said its research relied “almost exclusively” on the credit reporting agency’s own internal data. The company did not immediately respond to a request for comment from the Daily Caller News Foundation.
The findings suggest that Gen Z’s unusually high rate of uninsured driving cannot be attributed to a single cause. While more than a quarter of uninsured respondents said they lacked the money to maintain their policies, an even larger share said they consciously declined to renew, while others lost coverage because of late payments or insurer decisions.
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