Car Insurance for Young Adults
Delivered September 12, 2019. Contributor: Jennifer P.
Goals
To provide data on car insurance considerations for young adults; including information showing that they show that have a shorter consideration period for purchase, prefer direct to consumer insurance models, as well as information on what they consider and what engages them in the car insurance buying journey
Early Findings
Car buyers in their 20s are more likely to ‘play the field’ vs being loyal to one company, and less likely to stick with their usual insurer when the time to renew comes. This is thought to be related to millennial distrust of large companies and institutions.
Millennial car owners tend to be less engaged with their insurance carriers, with only 31% classified as fully engaged, compared to 41% of other age groups.
Millennials are also typically less profitable as related to that engagement, as they are less attached to the purchase of auto insurance altogether.
They are also less likely to want to engage in a face-to-face with an agent in order to purchase their insurance policy. Only 34% of millennials purchase car insurance from a local agent, with more likely to purchase online or over the phone.
Car insurance isn’t a top priority, with only 16% of millennials thinking insurance is actually necessary, and only 64% of drivers between age 18 to 29 having auto insurance.
Millennial drivers also feel that rates should be based on driving behavior, vs. other factors like age, gender, or credit score.
They also are most willing to pay more for car insurance that includes technology for theft tracking, location services, automated emergency calls, and breakdown notification service. Proposed next steps:
You need to be the project owner to select a next step.
We can provide an analysis that highlights car buying and ownership trends among young adults- for example, are less young adults buying their own cars, are they buying used or new cars more often- and how do these impact car insurance sales to this demographic
We can provide a report on the average user journey of a young adult in buying their first car