RICHMOND, Va.--(BUSINESS WIRE)--Compare.com, the only website dedicated to accurately comparing multiple auto insurance companies at once, has analyzed data from more than 2.3 million American drivers to identify key factors that influence car insurance premiums for drivers. The data reveals that the cost of premiums varies by generation, with Millennials spending the most on car insurance by a wide margin.
On average, Millennials pay $1280 a year for premiums – approximately 44 percent more than Boomers, who pay an average of $892 (as illustrated in Figure A). Additionally, Millennials spend approximately 28 percent more than Gen X drivers and 15 percent more than the Silent Generation.
Those who live with their parents pay most of all. On average, people who live with parents spend $1750 a year on car insurance premiums; this is 73 percent more than people who own condos spend ($1009), and 45 percent more than people who own single family homes spend every year ($1205). Of these individuals who live with their parents, more than half (53%) are in their twenties and another quarter (24%) are in their teens.
Impact of Claims and Accidents
Millennials are also burdened by high costs when it comes to claims and accidents. After their first claim, this age group pays 21 percent more than GenX (as illustrated in Figure B). Millennials with two or more claims pay 7 percent more than their peers with no claims ($1,169 vs. $1,089).
After their first accidents. Compare.com analysis reveals that Millennials and Silent Generation drivers get penalized the most, with high premiums at $1458 and $1386 a year. As for the second accident, premiums for these two groups increase dramatically to $1924 and $1844. In addition, Compare.com data shows Millennial and Silent Generation drivers are more prone to accidents compared to GenX and Baby Boomer drivers.
“It isn’t fair that Millennials are disproportionately burdened by car insurance premiums, considering this group also faces record levels of debt as a result of student loans and high living expenses,” said Compare.com CEO Andrew Rose. “With this being said, it is increasingly important for not only Millennials, but Americans of all ages to accurately compare car insurance rates in order to find a cost-effective plan that best serves them.”
Drivers can use Compare.com to compare car insurance rates from over 50 top auto insurance companies in seconds. For additional information about the research, visit https://www.compare.com/auto-insurance-report.
Compare.com is a limited liability corporation headquartered in Richmond, VA, majority owned by the Admiral Group, LLC, the UK’s second largest auto insurer and a member of the FTSE 100. Currently offering car insurance comparison services for US consumers in 49 states, Compare.com allows consumers to fill out a single form and get multiple quotes from trusted auto insurers. Through simple side-by-side comparison, Compare.com makes finding the best available rates on car insurance easy.