Millennials Pay More For Auto Insurance
Sept. 30, 2019—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.
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.
The study also found:
- 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.