Car insurance ‘age tax’ could affect two generations, study finds

According to a new study, Baby Boomers and Gen Xers pay a higher – and possibly unreasonable – average monthly car insurance premium because of the “age tax” considered. (iStock)

According to a study conducted by car insurance shopping app Jerry’s, Baby Boomers and Gen Xers pay a higher – and possibly unreasonable – average monthly car insurance premium, due in part to an “age tax.”

The study found that Gen Z drivers in 17 states across the US pay higher auto insurance rates than Millennials, despite having the same or fewer driving violations.

“Car insurance premiums defy common sense,” said Lakshmi Iyengar, Jerry Data analyst. “When reviewing breaches, one of the most important factors in insurance premiums, the data shows that regardless of breaches, the two generations are often priced higher – Gen Zs and Boomers.”

If you think your car insurance costs are too high, visit Credible once to enter your information and compare deductibles and other coverage options from multiple auto insurance companies to find the best car insurance rate for you. Many companies include discounts that can help lower your rate such as the good student discount, safe driver discount or discounts for other safety features.

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Where do drivers pay the highest age tax?

Baby boomers reportedly have higher insurance costs than Gen X drivers in 11 states, but lower traffic violation rates. Boomers are statistically the safest drivers of any age group, with a national average violation rate of only 10%.

Jerry’s study noted that boomers live primarily in the eastern United States, and another of his studies found that “on average, East Coast drivers are about 45% higher in monthly premiums than West Coast drivers.” Pay. Although it doesn’t count. Gen X drivers are being charged more for boomers, this begins to explain their higher premiums in the eastern states.”

Despite low-speed tickets, at-fault accidents, and other violations in Iowa, Indiana, Missouri, North Carolina, Nebraska, New Jersey, Ohio, Rhode Island, Tennessee, Gen Z drivers pay higher rates on average on their car insurance policies. did. Virginia and Wisconsin.

New auto insurers have more favorable rates that follow the profile of the driver, taking into account factors such as driving record, age and credit score. Visit Credible to find a car insurance quote for the best premium for you and get pre-qualified for car insurance coverage in minutes without impacting your credit score.

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Although Gen Z and Millennials drivers have infringement rates of 25% and 24%, respectively – the average car insurance premium is $54 higher for Gen Z drivers, at $314 per month.

According to the study, Gen Z drivers have the highest median insurance premiums among all age groups nationally — ultimately $54 more per month than millennials, $105 more than Gen X and $104 more than boomers. Paying.

If you are paying a lot for your auto insurance policy, consider the discount options offered by other car insurance companies. Visit Credible to compare multiple insurance quotes at once and choose the one that suits you best.

You have questions related to finance, but don’t know what to ask? Email a trusted money specialist moneyexpert@credible.com And your question can be answered by credible in our Money Expert column.

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