Study: Millennials Pay More for Auto Insurance than Any Other Generation

A recent study commissioned by Reviews.com has found that millennials pay more for auto insurance than drivers of any other generation. The study analyzed 55 million sample rates spread across 34,000 ZIP codes in all 50 states and found that, on average, millennials pay $1,753 annually compared to the $1,395 paid annually by drivers of older generations.

Source: Reviews.com | Published on September 30, 2019

In the car. Close up of a rearview mirror with a smart skillful driver looking into it
  • On average, younger men pay more (roughly 11%) annually than young women but as age increases, the gender rate gap begins to level off
  • Marital status impacts rates with singles paying 7.7% more than couples
  • Lower credit scores than older generations cost millennial drivers more; on average, millennial drivers with a "fair" credit score will pay 25.6% more than millennial drivers with an "excellent" credit score.

Visit https://www.reviews.com/blog/report/millennials-report to learn more.

"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," says 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."

Partnering with Quadrant Information Services, Reviews.com looked at 152 driver profiles spanning different driver histories, coverage levels and demographic factors to give insight into pricing factors that impact millennial auto insurance rates and determine which companies offer the most favorable rates for drivers age 23-38.

Reviews.com spoke to J.D. Power, the leading authority on consumer voice and insights across major consumer-focused industries, to lend insight into how millennials are approaching auto insurance.

"Growing up with easy access to information turned millennials into researchers by nature. Combining this with the fact that millennials generally have less income and more debt, so they have become very savvy shoppers," says Kyle Schmitt, Managing Director of Insurance Intelligence at J.D. Power. "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."

Study Methodology

Quadrant provides this information through rating data insurers are required to file with state departments. Our report analyzes sample rates from over 34,000 ZIP codes spread across all 50 states and includes the 5-10 biggest insurers in every state by market share. Find more info here.

About Reviews.com

Reviews.com started as a small group of consumer advocates in 2013 and was acquired by Red Ventures in 2016. Today, its operations span the U.S., with testing facilities in Seattle, New York City and Fort Mill, South Carolina. Our mission is simple: to be a trusted purchase companion on everything you subscribe to. For more information, visit https://www.reviews.com/about/.