There has been a lot written about the colliding generations: Boomers, Generation X and Generation Y all duking it out on the highway of life in their struggle to be top dog.
I've decided to take a look at the generation gap as it relates to car insurance rates.
So ... which generation commands the best car insurance rate? It depends on which insurance company you buy from, as they all offer a spread of difference rates for each generation. I compared 30 insurance company rates using the same car and simply changed the driver's age and found the lowest and the highest rates I was quoted, based on a clean driving record.
Generation Y (born 1977-1991): The Internet generation, they learned to drive before they ever got behind the wheel of the car - via video games, of course. The centre of their parents' universe, these high-maintenance kids have been groomed for success. Voted most likely to have their own car before the age of 18.
They are often referred to as "echo boomers" and lean towards environmentally friendly electric cars. There's not a lot of actuarial crash data on these newer models, which might give these buyers a bit of a break.
- Lowest rate: $2,750
- Highest: $4,551
Generation X (born 1965-1976): Generation X has sometimes been described as disaffected, directionless, lacking passion and drive. Gen X seems to be a safe bet for car insurance companies.
This group grew up during a period of the dot.com boom, combined with reduced expectations of long term relationships between employer and employee. Using the Internet to find the best insurance rates is a no-brainer for this group. Switching companies to save a couple of bucks is a given. Even if the rates for this generation come in higher, it's a good bet that overall Gen Xers will not sleep until they find the lowest rate out there.
- Lowest rate: $1,363
- Highest: $3,392
Baby Boomers (1943-1964): This generation thinks the world revolves around them, and for the most part, they're right. They command the most attention from marketers, media and politicians. Clinging to their youth, this group has been voted most likely to sport a bumper sticker saying, "Just Like You ... Only Richer & Smarter." As a group they're the healthiest and wealthiest. Insurance companies love this group, as they profit handsomely from the sheer number of boomers and all the kids that are listed as drivers on their policies.
- Lowest rate: $1,164
- Highest: $3,136
The Silent Generation (1925- 1942): This generation of hardworking people focused on getting things done and advancing their careers. Yet, they've been called withdrawn, cautious and unadventurous. Many of our insurance risk assessors would have come from this group. Could the Silent Generation have given themselves an insider's edge when it comes to favorable car insurance rates?
- Lowest rate: $970
- Highest: $2,576
The Greatest Generation (1911-1924): This generation had the Second World War and spent the ensuing years rebuilding their lives. These men and women have no problem fighting for what they believe in. And if they feel they deserve a fair break in their car insurance rate, they'll have everyone running around to find them the best price. I'd recommend collision coverage be mandatory.
- Lowest rate: $1,106
- Highest: $4,295
With all that said and quoted, when it comes to insurance rates the often overlooked Silent Generation come out on top. Qualities considered to be negative by some have scored top points with insurance companies.
But remember: No matter what generation you belong to, you need to make sure you are paying the best rate possible, so shop around.
Lee Romanov is an insurance consumer advocate and creator of romanovreport.com