Goody, society has found yet another way to pick on young people for being young. New studies show that many car insurance providers consider millennials living with their parents a financial risk. As such, younger customers are forced to pay higher insurance premiums.
According to insurance aggregator Compare.com, millennial drivers living with their parents pay an average of $1,750 in yearly premiums. That’s a whopping 73% jump from the $1,009 payed by millennials who live in condos and a 45% jump from the $1,205 payed by homeowning millennials. Based on these statistics, insurers seem to believe that homeowners are less of an insurance risk. Owning a home, at least in this case, is seen as concurrent with a stable financial history.
Penny Gusner, a consumer analyst from Carinsurance.com, believes that millennials are also being forced to pay more because they’re not getting bundle discounts with homeowners insurance. A millennial living with their parents, statistically speaking, also tends to have a low or nonexistent credit score, which is why, in some insurers’ perspectives, they don’t own a home. “People with fair or poor credit typically pay more for insurance, because though controversial, insurers deem them as higher risk,” Gusner said. “A driver living with his or her parents may not have a healthy credit history built up yet, while those who own a home in most cases would.”
