Gen Z Is Far More Likely Than Their Parents to Drive Without This

The affordability crisis is impacting Gen Z so greatly that many admit they have driven a vehicle without insurance in 2026, despite the risk of getting a ticket with a hefty fine or losing their license for doing so. A recent survey reveals that almost a third of Gen Z drivers have driven without car insurance over the last six months, a figure that far surpasses the percentage of Gen X and baby boomers that have done the same. That said, there are many reasons why the youngest generation of drivers are forgoing insurance beyond just their inability to pay.

By comparison, Gen X and Boomers rarely drive without insurance

Up to 30% of Gen Z drivers in 2026 admit that they have driven or own an uninsured vehicle, which is more than double the average rate of all other respondents, according to the “Q3 2026 Insurance Personal Lines Trends and Perspectives” report by TransUnion. This survey of US personal insurance respondents polls 1,500 individuals per quarter.

In contrast, older generations are much less likely to drive without insurance; specifically, 17% of Millennial drivers, 7% of Gen X drivers, and a mere 1% of Baby Boomer drivers.

These percentages have been fairly consistent since 2023, with nearly 40% of Gen Z drivers saying that they have driven without insurance in late 2024.

As for why these Gen Z drivers are skipping car insurance, only 26% say it’s because they are unable to pay the premiums. 28% said that they chose not to renew coverage, 22% say that forgot to pay on time, and another 20% said they were dropped by their previous insurer.

Patrick Foy, senior director of strategic planning for TransUnion’s insurance business, explains that “affordability is a big challenge for Gen Z, and that certainly helps explain their lapses in coverage.”

He continued, “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.”

A similar study by Zebra asked Gen Z drivers what would happen if their car insurance premiums were to jump by 10%. 48% say they would cancel or suspend their coverage, while 54% would reduce their coverage or increase the deductible.