Nearly one-third of Gen Z drivers (30%) admitted having owned or driven an uninsured vehicle over the past six months, making them the most likely generation to own or drive a vehicle without coverage, according to new research from TransUnion.

By comparison, 17% of Millennials owned or drove a vehicle uninsured, with rates declining further among Gen X (7%) and Baby Boomers (1%).

The TransUnion’s Q3 2026 Insurance Personal Lines Trends and Perspectives Quarterly Snapshot explores the challenge of identifying Gen Z drivers at risk of coverage lapse.

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

Reasons Gen Z Owned or Drove a Vehicle without Insurance

The generation represents an increasing share of retention risk within insurers’ portfolios, the report noted.

Additional tools, like telematics and accident and violation histories, may be necessary to assess the likelihood that Gen Z drivers lapse.

Telematics may also be a stronger incentive to help younger safe drivers feel more in control of their rates and more likely to maintain coverage, the report added.

TransUnion also recommends insurers provide educational outreach with Gen Z drivers to stress the importance of maintaining coverage. Insurers can also offer more flexible coverage options that encourage younger drivers to stay insured.

“It’s going to be difficult for insurers to really understand and address this issue without more data, which is why TransUnion intends to conduct more in-depth research in the near future,” said Foy.