Give risky millennial drivers time to matureReprints
Millennials in their early 20s are riskier drivers than previous generations, according to a new study released Wednesday.
But there’s hope.
The study conducted by insurance industry credit bureau TransUnion L.L.C. also found that as millennials reach their early 30s they perform as well as, if not better than, Gen X drivers at the same age.
“Younger consumers are generally viewed as being the riskiest in the insurance market — oftentimes for good reason. On a percentage basis, they tend to get into more accidents and receive a higher propensity of vehicle citations,” said Mark McElroy, executive vice president of TransUnion’s insurance business unit, in a statement.
“Our study data clearly proves this, but we also derived new findings that paint a better picture of them. As millennials grow older, many consumers in this generation become good risks for insurance carriers who can benefit from long-lasting relationships with this influential group,” he added.
The study also found that millennials tend to be less loyal to their insurers. Over the past five years, the average number of auto insurance quotes a millennial shopper obtains per year – 2.25 – has been higher than the overall population average. TransUnion’s study also found retention rates in this same timeframe show that millennials remain with insurers far less often than prior generations; their retention rates are 7 percentage points lower than Gen X and 16 percentage points lower than Baby Boomers.