In today’s addition to our series this week on the automotive industry, we look into why “smart” tech-driven solutions for lowering auto insurance premiums are so well suited to younger consumers in the market.
A fifth of internet users say that they intend to purchase automotive insurance in the next six months, but our data shows that the bulk of this market lies in younger internet users.
Having less driving experience often means that these younger drivers are subject to higher insurance premiums. For some time now auto insurance providers have looked to incorporate technology to help gather data on driving habits to lower these premiums. But it’s only until the recent growth of “smart devices” linked to mobile apps that this kind of technology has a chance to scale with its newfound affordability.
Privacy concerns surrounding how companies are using consumer data have been common in the smart device industry, and auto insurance providers will also need to consider this when offering similar products aimed at lowering premiums.
But Gen Zers in the market for auto insurance are also significantly less likely than their older counterparts to express concerns over data collection.
Considering these youngest consumers are among the most likely to be looking to purchase this service in the near future, this could be a key selling point in offering a more competitive price.
This is especially true given that Gen Zers are also much more likely to look to technology and their smartphone when they interact with brands. As many as 23% say they have downloaded a branded app in the past month or that they want brands to provide innovative new products.