“Every generation is looking for more value for their insurance spend,” said JD Power.
This value-based buying trend has reinforced the importance of usage-based insurance programs, with usage-based policy purchases increasing across generations.
“It’s likely the result of the rising cost of mobility, which is driving everyone to look for alternatives to traditional time-based insurance policies,” JD Power said.
The company noted an ongoing generational shift in shopping behaviors. While the pool of potential life and health insurance clients has grown, the generational breakdown of this pool is changing. Gen Xers and older customers are on the decline, and while they’re unlikely to buy for themselves, millennial kids now make up 10% of the population and influence people’s insurance decisions. their parents.
While the number of millennials remained constant between 2010 and 2019, the number of millennials active on credit nearly doubled during that time, according to data from TransUnion.
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“That’s likely driving the distribution shift among shoppers who are more focused on younger generations,” said Michelle Jackson, senior director of personal lines market strategy at TransUnion. “Millennials made up the majority of auto buyers in 2021.”
The JD Power report showed that younger consumers are buying at a much higher rate than older consumers.
“While older consumers tend to be more price-focused when shopping, younger consumers, some of whom are just entering the market, are buying for the first time when buying their first vehicle” , said JD Power.
Younger consumers are also more likely to shop because of usage-based programs, a trend JD Power predicts would increase as auto insurance rates rise with inflation.