We did a little research on the views that Millennials — people born between 1980 and 1997 — share about auto insurance. Not surprisingly, wildly different conditions influenced their opinions compared to those that influenced previous generations.
Here's a look at what we found:
Millennials think insurance should be fast.
And the reality is yes, it could, but it doesn't always save you 15% or more, as insurance is a heavily-regulated industry with complex, multi-faceted pricing structures that the average consumer doesn't understand or even know exist.
Regardless of the amount of savings one may or may not actually find with such promises (and advertising spin), Millennials have little patience with insurance administration overall.
What they really want is the information they’re seeking, quickly - and by “quickly,” they mean NOW (just as they can order a medium pair of yellow socks with a watermelon print and have it delivered it to their door in a matter of minutes, thanks to Amazon). So yes, when it comes to get auto insurance quotes, they want that now, and easy, too.
Millennials are less loyal to insurance brands.
A recent Gallup poll revealed that barely 31% of Millennial customers were classified as “fully engaged with” (read “committed to”) their primary insurance carrier, versus 34% of both Generation X and Baby Boomers.
When it’s time to renew their insurance, they’ll shop around for the best deal, since there’s little-to-no incentive for them to truly remain loyal to any particular insurance brand. And, stuck in marketing practices from decades past, insurance carriers do very little to inspire any sort of brand loyalty to begin with.
Incumbent insurance shopping platforms like GoodFetch have wisely recognized that insurance has indeed become a commodity for the modern consumer.
Responding to this gap in the marketplace, GoodFetch.com has simplified the process of comparison shopping for accurate insurance rates -- and completing a policy purchase -- down to a matter of minutes (across a vast carrier panel no less...think Trivago, but for auto insurance; one 5-10 minute process, get accurate rates, pick one, check out, boom...done).
Clearly, GoodFetch "gets it" twhen it comes to car insurance for Millennials, and what the modern, digital native consumer really wants.
By addressing this pain point, they've indeed humanized and NOW-ified the historically painful process of comparing rates across multiple insurance carriers' sites (which takes the mere mortal hours to complete).
Further, they've removed the need to complete lengthy form after form, only to have you, the user, get dropped down a rabbit hole of lead aggregation traps, tricks, sales tactics.
(You know, when you've shopped online for car insurance rates before, and it seems as if the whole world knows? That is then followed by an onslaught of phone calls and spam from random insurance agencies starting almost immediately...painful right?)
In fact, Millennials in many cases would rather sign up with a smaller, newer more boutique-style carrier that "gets" them, and caters to their requirement of "Everything, Now."
Millennials are less likely to engage in face-to-face interaction with agents.
Insurance agents (who are, on average, 60 years old) pitch specialized service and personal attention as points of differentiation, though in a heavily regulated industry, Millennials know better.
In the end, Millennials are far more driven by price and ease + speed of purchase (online is their first choice, of course) than personalized service.
The Takeaway: Personalize your online, digital experience with potential new Millennial buyers in mind.
This offers the best of both worlds, giving them the feeling of personal attention while recognizing their overall distaste for making an appointment and sitting in a dusty office waiting to meet with an insurance agent in person.
Millennials don’t place much value on insurance.
The Takeaway: Content marketing and creative thought leadership components in your Content and Social Media Strategy offer an opportunity to educate Millennials about the importance and true value of insurance as a part of their lifestyle.
In other words, SHOW them why it matters, but don't TELL them to buy it.
Millennials want to pay for only what they use.
The Takeaway: Offering more flexible ways to purchase insurance gives Millennials a chance to “try out” insurance.
Insurance companies lack the trust of Millennials.
The Takeaway: Invite your satisfied customers to leave a review on your website to provide another viewpoint beyond your controlled marketing communications.
Meanwhile, they are dissatisfied with the current state of the online experience.
When it comes to discussing price adjustments, only 23% said they prefer in-person meetings or phone conversations, finding them cumbersome and time consuming. At this point, insurance carriers have shown little innovation in regards to mobile apps that can make the online experience more customer friendly, although a few UBI upstarts such as MetroMile are quickly blazing a trail in this area.
Upscale Millennials represent a unique opportunity.
The Takeaway: This niche Millennial demographic offers a rich opportunity to broaden insurance offerings well beyond auto coverage.
Founder & CEO