Guide To Selling Insurance to Gen Z With Success

Fran Majidi April 2, 2024
Insurance agent selling talking to gen z couple

People born between 1998 and 2013 are called Gen Z or Zoomers. They range in age from 11 to 26 years old and have been puzzling marketers for years, insurance companies and insurance agents included. 

If you’ve been trying to figure out how to reach Gen Z, we’ve done most of the research for you, so you can see which types of insurance are most marketable to Zoomers.

Selling insurance to Gen Z requires some expertise, because Zoomers are known to ask questions and watch their pennies.

Here are the different types of insurance and what they require of you when selling insurance to Gen Z.

Health Insurance

Gen Z can stay on their parent’s health insurance plan(s), until they turn 26. Not everyone’s parents are insured, however, and some people want to keep their health insurance policies separate. 

SmartFinancial can help insurance agents find Gen Z customers as they turn 26, which is when most Zoomers start shopping for health insurance. These customers won’t even have to wait for Open Enrollment to buy a health insurance policy, because turning 26 qualifies as a Special Enrollment Period.

Many but not all Gen Z will qualify for low-cost health insurance in the health insurance marketplace, depending on their income. With the right filters, you can find Zoomers who only qualify for private health insurance and can afford it.

Give Gen Z Affordable Health Insurance Price Points

This generation of insurance buyers wants to be educated on what they are buying and why. They are also very price conscious. Never sell a low-coverage health plan if you know the customer has an existing condition, but if the prospect you’re speaking with is healthy, quote them on a high deductible bronze plan if they are on a tight budget. 

Be transparent. Explain that they have the option of paying more for a traditional health insurance policy and then less out of pocket if something happens or if they get sick. Tell them that a high-deductible health insurance plan is really useful for putting a cap on unanticipated health emergencies. Go over pricing averages for ER visits, hospital stays and surgery bills, explaining how these costs can push them into medical debt without any health insurance coverage. 

Of course, not all young people are healthy. If you have a chronic condition that requires regular doctor visits and medications, you’ll probably save more money with a plan that is a little more expensive but has more benefits and lower copays and deductibles, possibly a higher tier plan, like a silver or gold plan.

If your prospect is enrolled in college, compare the cost of their school’s health insurance versus what you can sell them. Explain the differences when it comes to out-of-pocket costs, like copays and deductibles, to see which is more economical for the student.

Car Insurance

Motor vehicle crashes are the second leading cause of death in American teenagers. For this reason, drivers aged 16 to 24 see the highest car insurance rates, which drop significantly around age 25, unless they have an accident or file a claim. If they are living at home and on their parents’ car insurance, they are paying the lowest rates but are a burden on parents who pay more.

Before quoting your prospect, educate them about credit and how it affects their rates. Encourage them to have their own policy and to exclude a roommate or roommates with a low credit score or driving record, because they will raise their rate. Also explain that they cannot lend them the car because if they have an accident while excluded, the insurance company will not cover the accident at all.

As a whole, Gen Z is struggling with low wages, high prices on essentials and the cost of education or repayment. It’s important to apply as many discounts for this demographic as possible. like a good student discount (if they’re still in school), which typically requires a B grade point average to qualify, or if their school is more than 100 miles away from your home and they only drive when visiting for the holidays, they can qualify for what's known as an "away from home" discount but only if they do not to bring their car to school. 

If you’re an independent agent, you should know which insurers are more reasonable when setting rates for teens and young adults. 

Do not encourage them to buy collision and comprehensive coverage if their car is only worth a couple of thousand dollars. If they need it, explain how the deductible works so they save enough in case they have an accident or someone steals their car. They may be new car owners and have little experience with filing a claim. 

Talk them through an accident scenario so they know what types of information to collect for their insurance company.

Renters Insurance

Roughly 22% of all renters are Gen Z, and most of them do not plan to buy a home in the current housing market. It’s your job to explain why renters insurance is important for protecting personal belongings, both in the home and off-premises. Explain that car insurance will not cover their stolen laptop if it was taken from their car but renters insurance will.

Even if they’re barely getting by, have them consider what it’ll cost you to have to replace all their belongings if they are robbed or there is a fire. A landlord’s policy will not pay for new clothes, jewelry and electronics after a fire or burglary. 

If the prospect has roommates, encourage them to buy separate policies to ensure adequate coverage. Explain that there is a deductible and show them how it affects the cost of premiums. Tell them that, if necessary, roommates can share a policy, but make sure they buy higher coverage limits to cover everyone’s belongings. In these instances, encourage them each to create an inventory so they do not argue over how to split the claim payout and also it will help them establish an adequate coverage limit..

Home Insurance

Only roughly 26% of Gen Z own a home. For this group, homeowners insurance is like renters insurance and more. If you can sell them home insurance, you can get them to buy auto insurance too. 

If the Gen Z homeowner has a mortgage, they’ll need an insurance policy, as required by all lenders. In some instances, like with a condo, a condo-policy may be optional but explain that they will be liable for damages if something happens, like their water heater bursts and causes flooding in another unit. 

With a house, homeowners insurance is a must because damages to a home’s structure, roof or systems can be extremely expensive. Most storms are covered and so is fire (and more) with an HO-3 policy. Avoid selling Gen Z an HO-1 or HO-2 policy, even though it’s less expensive.

Talk to them about depreciation so they can decide if they want an actual cash value policy or a replacement cost one. Let them know why the latter costs more. 

The hardest part of buying a home insurance policy is trying to figure out how much of it they need. Explain that all you need is to cover rebuilding the home (dwelling coverage), not coverage for the market value of the home. That should take some weight off their shoulders. 

Explain also that belongings will be covered for 50-70% of the dwelling coverage, so they can decide if they need to buy riders on more expensive items, like jewelry, if they exceed coverage limits.

If your client is renting out a room to help pay for the mortgage, make sure that they require that renter to buy renters insurance. 

Commercial Insurance

About 84% of Gen Z want to start their own businesses and 50% of those with a job want to quit and start their own business. Many will ask you if business insurance is required by law. Only workers compensation coverage is required by law, if the prospect has at least one employee.

While other types of commercial insurance are not required by law, remind your prospects that coverage is tax deductible and that unless they have a commercial auto policy, they may not be covered with a personal auto insurance policy if they have an accident while using the car for work purposes, outside of a daily commute. 

Familiarize yourself with the types of losses your Gen Z client may have, depending on the type of business they start. They will expect expertise so after you make contact, research their industry so you know what to sell them. Only then can you explain why specific coverage would keep that business afloat if the unimaginable happened, like if their inventory burned down. 

Explain why most businesses have a general liability policy at the very least, because a trip-and-fall accident can end up being costly.

Life Insurance

The last thing you may think most Gen Z insurance shoppers think about is life insurance – but  40% of Gen Z have a life insurance policy. Why? Because an agent explained how a whole life insurance may help them with a low-interest loan down the line or how a final expenses policy would help their family members pay for a funeral and burial if the unexpected happened. 

A great selling point for life insurance is that it is very inexpensive while your Gen Z prospect is young, unless they have certain health issues.

Life insurance is always more expensive as you age, so tell them to lock in a good rate now and start a tax-deferred savings account, which they can later cash out or use as a low-interest loan at 5 to 8% or even lower. 


As you explore ways to sell insurance products to Gen Z, SmartFinancial is here to introduce you to insurance shoppers and help you retain insurance shoppers as agency clients. Contact us for more information about our lead programs 877.323.7750.