Gen Z Drivers Lead Tech-Savvy Trends, Shaping Insurance Preferences in 2025

A recent nationwide survey by Talker Research, commissioned by Lemonade, sheds light on the evolving driving behaviors of different American generations in 2025, highlighting a generational shift towards technology integration among younger drivers. Gen Z leads in adopting vehicle technologies such as Drive Mode, CarPlay, and Android Auto, with 56% regularly using these features compared to significantly lower usage rates among older cohorts. This generation also favors hands-free communication and phone-based navigation and entertainment, indicating a tech-savvy approach that differentiates them from millennial, Gen X, and baby boomer drivers.

Despite technological adoption, Gen Z drivers still engage in traditional risky behaviors, and only 30% believe their generation is safer on the road compared to 63% of baby boomers who view their peers as safer drivers. This self-awareness presents an opportunity for behavioral improvements, especially as younger drivers continue to embrace tech-enabled safety innovations.

The insurance sector is witnessing a distinct generational divide, with 41% of Gen Z drivers utilizing telematics-based insurance products that monitor driving habits through apps or plug-in devices. This contrasts with lower engagement levels among millennials, Gen X, and baby boomers. The preference for personalized, technology-driven insurance aligns with Gen Z's expectation for mobile, data-informed coverage that rewards safer driving behaviors.

The findings suggest that safety campaigns aimed at younger drivers should expand beyond smartphone distraction to address traditional distractions like eating, drowsiness, and emotional factors. Insurers are encouraged to tailor products and incentives that resonate with Gen Z's technology use and self-awareness to better meet their risk profiles.

The survey, conducted online with 2,000 drivers across generations, incorporates stringent quality controls and reflects statistically significant trends. However, its online methodology may limit applicability to segments without internet access. Overall, the study illuminates shifting dynamics in driver behavior and insurance preferences, underscoring the need for industry adaptation to generational technology integration.