A new study by Reviews.com focused on auto insurance and millennials found millennials pay significantly more for car insurance than other drivers. For the study, Reviews.com, partnering with Quadrant Information Services, analyzed 55 million sample rates from over 34,000 ZIP codes across all 50 states. The driver profiles took into account different driver histories, risk levels, and coverage levels, as well as demographic factors such as credit score and marital status.
“As a leading consumer advocate in the services industry, we wanted to take a deep dive into what actually impacts auto insurance rates for millennials,” said Taylor Moore, an expert insurance and finance writer for Reviews.com. “We want to empower buyers to know what makes their policies more expensive, so they can find the insurer that best suits their needs.”
The Reviews.com report uncovered new insights into how millennials are uniquely impacted by the auto insurance industry. The report found a small accident can raise premiums an average of over 50% for millennial drivers. The report also identifies providers who are more favorable to certain demographics of drivers like “high-risk” drivers and drivers in their early 20s.
Reviews.com approached J.D Power, a leading consumer guide to service-based and consumer centric industries to give thoughts on how millennials are impacted by the current auto insurance industry. Kyle Schmitt, Managing Director of Insurance Intelligence, said “Growing up with easy access to information turned millennials into researchers by nature. Millennials treat auto insurance like any other consumer product — highly focused on value, and when they don’t find what they are looking for, they will seek a better deal elsewhere.”
Check out the full report at reviews.com/blog/report/millennials-report.