millennial drivers

How Millennials Are Changing The Car Insurance Industry

When it comes to car insurance, millennials are not loyalists. More than any generation before, millennials are the least likely generation to stick with one car insurance provider. According to a study done by gallup.com on millennial car insurance habits, millennials are actually the least likely group to engage with insurers, and are even less likely to go offline to service their car insurance needs.

Why engagement matters

Insurance companies are more likely to earn a profit with an engaged customer base. Customers who are more loyal to a specific brand of insurance are less likely to complain of higher rater, and are more likely to stay on even when their premiums go up. This has serious implications. Millennials are the largest population to date, and the least likely to be satisfied with binding long term contracts. Engaged customers are not only less sensitive to car insurance price increases, they are also more likely to engage in a wider variety of products. So what’s the best way to engage millennials car insurance customers? Evolving. The car insurance industry must evolve in order to cater to the new needs of a new generation with vehicles.

Engage millennial consumers online

Millennials are twice as likely to purchase their car insurance policies online, a fairly recent development. Online is not the mainstream way that consumers currently purchase car insurance. 74% still purchase car insurance the old fashioned way, but the number is declining. Even if millennials don’t purchase their car insurance online, they are more likely to be comfortable with an insurance provider if they have their rates available online, as well as an option to contact agents online.

Things millennials look for from car insurance providers

Millennials look for ease and flexibility when it comes to their insurance providers. Compared to other generations, millennials experience the most fluctuation in their financial state, and therefore are more likely to lean towards flexible coverage for their car insurance. Making your rates easily accessible online, and having answers available on the internet for your millennial car insurance consumers will foster a sense of trust with new customers, and can begin to build engagement loyalty will millennial car owners.

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