A new survey finds that “millennials”, or people aged 18 to 29, are more likely to embrace pay-as-you-drive (PAYD), or usage-based insurance programs, than older drivers.
The survey, which was carried out by Princeton Survey Research Associates International for InsuranceQuotes.com in December 2014, focused on just over one thousand American adults. Its most important finding may be that 47
The survey also found that just under half of all Millennials would be willing to try out a PAYD insurance plan, while only about one in three people aged 50 to 64 and 28 per cent of respondents aged 65 and over said they would try a similar program.
Mike Barry, a spokesman for the Insurance Information Institute, says young people recognize that PAYD programs have a lot to offer them. “A lot of millennials are just starting their careers and looking for ways to save money,” Barry said. “Pay-as-you-drive policies may help them do that.”
Catherine McCullough, an executive director
“Millennials have grown up with technology like this, and they’re more comfortable using it,” McCullough says. “They also feel much more comfortable allowing their data to be used for different purposes.”
Looking forward, McCullough sees huge promise for usage-based insurance and believes young people will help establish the technology’s growth. “We stand to learn so much from this data about big societal issues like driver safety, reducing pollution and sustainability,” she said.