Auto insurance “outdated age tax” may have an effect on two generations, based on a research – Fox Enterprise
Baby Boomer and Gen Zers pay a higher – and possibly unjustified – average monthly car insurance premium, partly because of the alleged "old-age tax", according to a new study. (iStock)
Baby Boomer and Gen Zers pay a higher – and possibly unjustified – average monthly car insurance premium, in part because of alleged "old-age tax", according to a study by the car insurance shopping app Jerry.
The study found that Generation Z drivers in 17 states pay higher auto insurance rates than Millennials even though they have the same or fewer traffic violations.
"The auto insurance premiums are contrary to common sense," said Jerry data analyst Lakshmi Iyengar. "When reviewing violations, one of the most important factors in insurance premiums, the data shows that regardless of violations – Gen Z and Boomers – often get higher prices for two generations."
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Where do drivers pay the highest old-age tax?
Baby boomers reportedly have higher insurance costs than Generation X drivers in 11 states, but lower traffic violations. Boomers are statistically the safest drivers of all ages, with a national average violation rate of just 10%.
The Jerry Study says that boomers live primarily in the eastern United States, and that another study of them found that "East Coast drivers pay, on average, about 45% more monthly premiums than West Coast drivers for boomers who are more are billed as Generation X drivers, this explains their higher premiums in the eastern states. "
On average, Generation Z drivers paid higher rates for their auto insurance even though they were in Iowa, Indiana, Missouri, North Carolina, Nebraska, New Jersey, Ohio, Rhode Island, Tennessee, Virginia, and Wisconsin.
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Although Gen Z and Millennials drivers have high injury rates of 25% and 24%, respectively, the average car insurance premium for Generation Z drivers is $ 54 higher at $ 314 per month.
According to the study, Generation Z drivers have the highest average insurance premium across all ages in the country – ultimately paying $ 54 more per month than Millennials, $ 105 more than Gen X, and $ 104 more than Boomers.
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