com, a Lending tree subsidiary that provides insurance quotes, suggests that the issue might be significantly more complex. While there is no doubt that Millennials are more likely than older generations to use public transportation and rideshare services, it might be as much a result of their circumstances as it is their supposed dislike for automobiles.
Millennials are more likely to be single and childless than older age cohorts, and that has significant transportation implications. So does the fact that Millennials are more likely to live in large urban areas than others.
Quote Wizard insurance expert Adam Johnson said the desire for car ownership might not be as pronounced among Millennials as in previous generations, but he didn’t feel Millennials are turning their backs on cars.
“With buying a home and raising a family being more expensive than ever, owning and maintaining a car is an easy area to cut costs for the younger generation,” Johnson said. “Many companies are offering commuter benefits, encouraging more people to leave their cars behind and use public transportation as a free option.
Another thing to consider is the effect the internet has on many daily interactions, from catching up with people that live one town over, to going to a store to buy things big and small. Technology serves as a vehicle in some of these cases.
While companies are expected to continue to offer benefits to commuters and the internet isn’t likely to vanish soon, other life factors are expected to prompt Millennials to develop a greater interest in car ownership over time, Johnson said.
The study found that Millennials currently drive a mix of vehicles that is significantly different than the overall mix of vehicles on the road. The industry’s biggest trend over the past decade has been the move to crossover SUVs, but today’s Millennials most often drive sedans, the study found.
But if things were equalized and sedans and SUVs were similarly priced, or millennials were willing to spend more on cars, would that change? We don’t think so, for a few reasons: Millennials are having fewer children than previous generations, and having children is a big reason to buy an SUV; gas prices, though not as alarming as they used to be, are still a concern; and Millennials prefer to live in urban areas, where SUVs are less appealing.”
The QuoteWizard study was derived from an analysis of auto insurance quote data from users of its website.