Millennials living at home with their parents pay more for auto insurance coverage, according to new research. There are two main reasons this is. Millennials living at home have less evidence of financial responsibility and are missing out on bundling savings.
Young adults already have higher risk profile compared to older generations. Their credit scores may be lower and their lack of driving experience especially for drivers under 25 can increase car insurance premiums significantly.
Young adults that do not own a home are missing out on discounts insurance companies give for bundling homeowners insurance and car insurance with the same carrier. Homeowners also have reduced car insurance rates because insurance companies consider home ownership as proof of financial responsibility.
If you are a millennial that falls into this category, the best thing to do is compare auto insurance quotes online frequently to ensure you are getting you are getting the best rate for your coverage.
When you are ready to move out, consider the location of your home. Auto insurance rates vary depending on location. If you move to an area where thefts and car collisions are common, you will pay higher car insurance premiums.