Millennials: The riskiest generation of drivers? [infographic]

TransUnion’s study finds millennials pose greater insurance risk than previous generations at the same age, but they may be worth it as customers in the long run. (Photo: Shutterstock) Millennials in their early 20s tend to be risker drivers than previous generations at the same point in their lives, according to a new report from credit reporting agency TransUnion. Related: Millennials are not the enemy. Here’s why The “TransUnion Insurance Millennial Study” examined TransUnion’s proprietary driving history records, distracted driving information and vehicle history information and found: The frequency of violations is highest for millennials and has been increasing over time. Millennials receive the most distracted driving violations of any generation and the rate of increase is 1.8 times higher than Generation X and 2.4 times higher than boomers. Millennials average more driving miles than any other generation (13,725 miles annually), which is 3 percent higher than Gen X and 8 percent higher than boomers. Millennials have the highest percentage of higher risk vehicles. Millennials have the highest percentage of only having liability coverage (37 percent). Wisdom with age However, the study also found that as millennials reach their early 30s, they perform as well — if not better — than Gen X drivers of the same age. Additionally, fewer millennials have collections as a percentage of credit active consumers compared to Gen X, says TransUnion. “On a percentage basis, [millennials] 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. “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.” The number of auto insurance quotes a millennial shopper obtains per year — 2.25 quotes — has been higher than the overall population average. (Photo: Shutterstock) Brand loyalty low Unfortunately, building long-lasting relationships with millennials may not be easy for insurers. Millennials know how to shop around, and don’t value brand loyalty when it comes to insurance companies. Related: What millennials want from insurance agents According to the study, over the last five years, the number of auto insurance quotes a millennial shopper obtains per year — 2.25 quotes — has been higher than the overall population average. The study also found retention rates in this same timeframe show that millennials remain with carriers far less often than prior generations, says TransUnion. Their retention rates are seven percentage points lower than Gen X and 16 percentage points lower than baby boomers. See more facts about millennial insurance customers in the infographic below, or visit “TransUnion Insurance Millennial Study” to download the full report. Related: Thinking millennial: How to woo the largest generation (Click image to enlarge.)

About John Fagan

John is a Jacksonville native who grew up on the First Coast. He graduated from Bishop Kenny High School in 1975 and went to college at Florida State University where he completed a 4-year program in 3 years. John graduated from the Florida State University College of Business in 1978 and went straight into Florida State University College of Law. While in law school, John earned a position on the prestigious Law Review Board serving as its Business Editor. As a law student, John studied in the Oxford program. He also interned with the Florida Legislature working in the Florida House of Representatives Criminal Justice Committee. John was admitted to the Florida Bar in 1981. John began his legal career as a law school intern in the State Attorney's Office in Jacksonville in 1981. After his internship, legendary State Attorney Ed Austin hired John as a full-time Assistant State Attorney for the Fourth Judicial Circuit (Clay, Duval, and Nassau Counties). As a prosecutor, John tried jury and non-jury trial on charges ranging from DUI to Murder. In 1983, John moved from the State Attorney's Office to begin his career in private practice. He has practiced law for 30 years on the First Coast. For the last 20 years, John and his family have made Clay County their home. John limits his practice to personal injury and disability cases. While there are many fine attorneys in Clay County, John is one of only a few Clay County attorneys who limit their practice to personal injury and disability cases. John takes pride in helping clients resolve injury claims in ways that avoid the stress, uncertainty, and the expense of unnecessary litigation. Professional Activities John is the past President of the Clay County Bar Association and has served on the Board of the Clay County Bar Association from 2009-2013. He is an active member of the Florida Bar, and the Federal Bar of the Middle and Southern Districts of Florida. He is also a member of the American Association of Justice, the Florida Association of Justice, the National Organization of Social Security Claimants' Representatives, and the National Organization of Veterans' Advocates. Service to the Community John is involved in the Clay County Community serving as a member and Director of the Rotary Club of Orange Park, of the Clay County Bar Association, and the Putnam County Bar Association.
This entry was posted in Articles. Bookmark the permalink.