![\"iStock_000065161021_Medium\"](\"https:\/\/www.freeway.com\/blog\/wp-content\/uploads\/sites\/3\/2016\/03\/iStock_000065161021_Medium.jpg\")
<\/a>\nLess profitable for insurance companies<\/strong><\/p>\n
From the insurance industry\u2019s point of view, millennials (individuals identified as those born from 1980 to 1996) are more complacent and are less engaged than the traditional insurance buyer, which means they\u2019re less profitable for the insurance companies. And, according to a recent Gallup poll, they appear to possess considerably less attachment when it comes to buying auto insurance<\/a> or homeowners insurance<\/a>.<\/p>\n In fact, they\u2019re also less likely to go to their current auto insurer as their first choice when looking for a home or renters insurance policy, or to stay with their insurer when it\u2019s time to renew. This makes them somewhat elusive.<\/p>\n The poll goes on to show that 31% of millennial customers were classified as \u201cfully engaged\u201d with their primary insurance carrier. Meanwhile, 34% of Generation X, 34% of Baby Boomers, and 41% of Traditionalists were listed as \u201cfully engaged\u201d.<\/p>\n Not limited to millennials<\/strong><\/p>\n But, Michael Barry, vice president of media relations for the Insurance Information Institute<\/a>, doesn\u2019t believe the trending buying habits are necessarily limited to millennials. According to Barry, consumers of all generations are shopping for the best rates online and with the growing competitive marketplace there are so many more ways to shop and compare an auto insurance<\/a> policy.<\/p>\n However, while many transactions may initially begin on the internet, they\u2019re likely to conclude with a face-to-face meeting with a licensed agent. But, Barry believes that\u2019s changing among the younger crowd as fewer of them seek to personalize the transaction with a face-to-face meeting.<\/p>\n Regardless of who is driving the shift, Barry says the lack of engagement by millennials is unlikely to raise policy rates industry-wide, stressing that the driver\u2019s actions behind the wheel will have greater influence on premium costs. Usual factors such as driving record, driving habits, make and model of your vehicle and number of miles driven are given the most consideration when setting auto insurance rates<\/a>.<\/p>\n In addition, insurers look at the types of claims filed, the frequency, and the extent of those claims. Obviously, the amount of claims you file and their severity will dictate how high your rates will go. The end result could also be non-renewal or cancellation of your policy \u2013 both of which you want to avoid.<\/p>\n<\/a><\/p>\n<\/a>
\nNot likely to raise policy rates<\/strong><\/p>\n