According to Statistics Canada, home ownership rates in our country are on the decline (69% in 2011, 66.5% in 2021).
Millennials (those born between 1981 and 1996) seem to be the most impacted by this trend, with home ownership rates among the 25-29 age group falling from 44.1% to 36.5%.
What does this mean for the millennial generation as it relates to home insurance?
HOME INSURANCE SHOPPING HABITS OF MILLENNIALS
Even more than previous generations before them, millennials are strongly influenced by referrals from trusted sources when shopping for insurance.
This can include online reviews, but an even stronger influence comes from referrals by people they know and trust in their lives like a friend or family member.
Word of mouth isn’t the only factor millennials consider when looking for home insurance.
According to a survey by KMPG, 55% of millennials use Google searches to find and learn about insurance products.
Surprisingly, around 50% of respondents say they prefer buying insurance in person, however less surprising is the growing trend of younger generations preferring to buy their insurance online.
WHICH FACTORS INFLUENCE HOW MILLENNIALS BUY INSURANCE?
Increasingly, younger generations like millennials are seeking convenient easy access but at the same time value expert advice just as much as older generations.
While the price of insurance certainly influences the purchasing decisions of millennials like it does for every other generation, around half of millennials also report other important factors in their insurance buying decisions such as
Comprehensive insurance coverage
Insurance company reputation
Frankly, this data makes a lot of sense.
As purchasing a home in Ontario becomes increasingly difficult for younger buyers, the worry of “what ifs” when it comes to protecting the home also increases.
More than ever, young home buyers understand the importance of protecting their most valuable asset so ensuring they’re covered for all of the worst “what if” scenarios is extremely important which is why comprehensive coverage is such a popular factor.
Even though millennials aren’t just looking for the lowest-priced insurance, paying less or as little as possible still plays a major role, so how can younger home buyers pay less for their home insurance?
ARE THERE HOME INSURANCE DISCOUNTS AVAILABLE TO MILLENNIALS?
While some home insurance discounts may be out of reach for millennials such as the mortgage-free discount and mature discount, there may be other ways for them to spend less on home insurance.
First Time Home Buyer Discount – If you’re a millenial buying a home, chances are it’s your first home. Those who have purchased their first home since January 1st of last year may qualify for our 25% off first time home buyers discount for home insurance!
New Home Discount – For those millennials who have purchased a new home built within less than 10 years, they can enjoy a discount thanks to the lower risk their newer home carries.
Loyalty Discount – We offer a range of discounts depending on how long you’ve had your policy with us. Those who have been with us longer are eligible for a larger discount.
Multi-Line Discount – If you decide to bundle and have both your home and auto insurance with us you will save with a Multi-Line Discount on your property policy plus additional savings on your auto insurance.
Alarm Discount – If you protect your home with a monitored alarm system, we extend additional savings under your home insurance.
Higher deductible = Lower Insurance Premium – Millennials can customize their level of deductible based on their needs and risk tolerance. Raising the deductible can provide up to a 33% discount.
Please note that a maximum policy discount cap may apply for the various discounts offered (BUT our Multi-Line Discount and Deductible Savings do not fall under this cap).
Buying a home may be increasingly difficult for millennials, but we hope thanks to the discounts and advice we offer, we can help make their home insurance buying easier and more affordable.
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
