Skip to main content
  • Toolset
  • Solutions
  • About DMS
  • Case Studies
  • Contact Us

Connect With Your Audience At Scale

    • Acquire New Customers
    • Generate More Inquiries
    • Grow My Email Database
    • Grow My Website Traffic
    • Monetize My Audience
    • Re-Engage Consumers
    • Contact DMS
    • See The DMS Live Schedule
    • Be Inspired
    • How To / Best Practices
    • What Is...?
    • DMS Reports & More
    • Contact DMS
    • As Seen In...
    • Press Releases
    • Contact DMS
    • Enjoying The Journey
    • Work/Life Harmony
    • DMS Team
    • Contact DMS
    • Events
    • DMS Case Studies
    • Careers @ DMS
    • DMS Toolset
    • DMS Solutions
    • DMS Overview
    • DMS Investor Info
    • Contact DMS

Recent Searches

    Share this Post

    • Share on facebook
    • Share on twitter
    • Share on linkedin
    • Share on email
    1. Home
    2. DMS Insights: Digital Advertising News
    3. Millennials & Gen Z: A Profile Of Auto Insurance Customers

    Fill form to unlock content

    Loading, please wait

    Error - something went wrong!

    Thank you!

    Millennials & Gen Z: A Profile Of Auto Insurance Customers

    Published Date December 28, 2020

    More than a decade ago, a growing population combined with the housing crisis from 2007 to 2009 caused rentership in the U.S. to climb. Since 2010, the rate of rentership in the U.S. has increased almost every year. From 2006 to 2016, 9.1 million consumers became renters. In 2019, the cost of homeownership continued to rise as inventory shortages and high demand drove home sale prices up. Currently, 44.1 million U.S. households are renters. While the American homeowner has been a key demographic among auto insurance advertisers for many years, it is vital that auto insurance carriers and agents develop a keener understanding of the American renter, a segment of the population that is increasingly purchasing car insurance. 

    Millennials And Gen Z Represent Largest Share Of U.S. Renters 

    Shutterstock_1156208539 Young couple using laptop and smartphone in the kitchen, smiling man working online at home while his wife cooking with phone apps, family morning lifestyle with gadgets or devices addiction concept

    Over the last decade, a series of financial scenarios have compounded to create a rise in rentership. The Great Recession caused many Millennials to experience periods of unemployment and underemployment. Many college grads returned to living with their parents after graduation to save on housing costs, and then mortgage rate spikes in 2017 and 2018 preventing many prospective homebuyers from entering the market. Millennials and Gen Zers currently make up a majority of the U.S. renter population. According to the National Multifamily Housing Council (NMHC), 72% of renters are age 44 and younger, with 23% of renters represented by consumers age 30 to 44 and 49% by consumers age 30 and younger. 

    More Millennials Choose To Rent

    After witnessing the Great Recession and housing crisis first hand, Millennials have recreated the American dream without relying on homeownership. For many Millennials, the job crisis that came during the Great Recession accelerated the impact of their student loan debt, establishing obstacles preventing them from achieving homeownership. Renting allows Millennials the flexibility to move around and cater to their needs and an evolving job market while they pay down other debt. From 2009 to 2016, the number of Millennial households that owned a home experienced a steady decline. Millennials simply could not afford to become (or remain) homeowners, and those who could afford the investment often did not have enough inventory to choose from in their price ranges because of housing shortages. 

    While some Millennials are still priced out of homeownership because of affordability and inventory concerns, others are choosing to remain renters to avoid the hidden costs of owning a home. In addition to price, Millennials are reviewing the total value of homeownership in regards to their lifestyle preferences. In many major metros such as New York City, Austin, Los Angeles and Miami, even Millennials who can afford homeownership are opting to rent instead because the cost of homeownership in these areas is simply too expensive and entry level down payment thresholds would still require years of saving.

    Gen Z Sees The Value In Renting, For Now

    In 2019, Freddie Mac found that, while a majority of Gen Z value the benefits of renting, they feel “homeownership is something to be proud of.” While Gen Zers enjoy the flexibility renting gives them, they are not looking to avoid homeownership altogether. According to data from Freddie Mac, last year, 86% of Gen Zers surveyed claimed to “want to own a home someday,” with most respondents believing they can achieve homeownership by age 30. 

    The economic conditions that have resulted from the global pandemic will likely alter projections for Gen Z homeownership. In Q2 2020, the share of unemployed Gen Zers living with their parents jumped 53% from just the quarter prior. By August, the number of unemployed Gen Zers living with family had slipped to a still elevated 10.2 million, up from just over 8 million in February. 

    In November, there were indications that Gen Zers were returning to the rental market. With the oldest segment of Gen Zers now age 23, this audience segment will continue to be a key demographic for the rental market, as it is the only demographic segment to experience an upward trend.

    Common Values, Behaviors & Lifestyles Of Renters

    As the mindsets of renters shift, advertisers must stay abreast of their evolving habits, behaviors, values and lifestyle preferences. Here are the common attributes to consider when targeting the U.S. renting audience according to the 2020 Apartment Residents Preference survey conducted by NMHC. 

    Renters Want Mobility & Flexibility

    According to the National Association of Realtors (NAR) Community and Transportation Survey in 2020, walkability and access to major roads and highways remains a top preference across all generational segments in relation to where they choose to live. In the 2020 Apartment Residents Preference survey, NMHC found that 75% of renter households take a car, truck, van, motorcycle or taxi to work.  

    Renters Prefer To Live Closer To Where They Work

    Shutterstock_368989106 Man driving a car and looking at watch ,business concept ,vintage tone

    Data from the NAR 2020 Home Buyers and Sellers Generational Report indicated that 74% of Millennials surveyed listed convenience to a job as a factor that heavily influences where they choose to live. NMHC revealed that 62% of renter households in the U.S. had a commute time of 30 minutes or less. The survey also found that, at the time, 58% of renters did not telecommute and those who did worked remotely only a few times a month or less. This has obviously changed in 2020, with an increase in the share of renters telecommuting likely to be significantly higher into 2021 and beyond.

    Why Does This Matter To Auto Insurance Providers? Auto insurance providers should consider marketing mileage-based programs and coverage options to renters. Renters will likely value insurance options that appeal to their driving habits, which include shorter commute times to work. Offering renters auto insurance programs that are tailored to low mileage driving may result in higher conversions for insurance brands. 

    Renters Value Connectivity

    The NMHC apartment preference survey reported that 91% of renters consider strong mobile phone reception important at home. Renters also value access to high-speed internet, pre-installed wi-fi and community wi-fi options. There is also a growing trend of renters becoming interested in smart home features and devices such as smart thermostats, smart lighting, dynamic glass and virtual assistants like Amazon Alexa or Google Home. While smart home features could be costly to install or own, they are less expensive when included in resident rental or building fees at an average of an additional $29 to $30.

    Why Does This Matter To Auto Insurance Providers? More and more renters value connectivity and access to reliable technology. Renters will likely value insurance companies that offer their customers seamless online experiences and user-friendly mobile apps. When targeting renters, insurance providers should promote their mobile app’s convenience and accessibility as a way for drivers to easily tap into their auto insurance coverage benefits and connect with their provider. 

    Renters Want Convenient In-Unit Amenities And Products

    Buying a new appliance could be costly, however, renter’s enjoy the convenience of having new household gadgets accessible in their homes as part of their rental agreements. According to the NMHC apartment preference survey, 91% of renters want an in-unit washer and dryer and 55% would not rent a unit without it. Additional features renters value are in-wall USB ports and garbage disposals, with 76% of renters interested in these amenities. 

    Why Does This Matter To Insurance Providers: Renters are cost-conscious but, they are also highly motivated by products that add and hold value over time. Renters are willing to pay for something if it allows them to have flexibility and accessibility. Insurance providers should curate marketing messages that position their bundling incentives for renters and auto insurance and promote options that allow renters to create an insurance plan based on unique preferences with more a’la carte options.  

    As Rentership Increases, Auto Insurance Brands Have An Opportunity To Engage & Acquire New Audiences

    Shutterstock_1473153551 Young couple driving car and using digital map on smartphone, panorama

    As the rate of rentership in the U.S. continues to grow, brands and advertisers need to consider the wants of this audience. According to the 2020 Auto Insurance & Emerging Consumers Trends published by Digital Media Solutions (DMS), the share of non-homeowners seeking auto insurance during the first three quarters of 2020 grew from 54.4% the prior year to 63.3%. While many auto insurance companies have traditionally targeted homeowners, there is a major opportunity for auto insurance advertisers to connect with renters. Bundling renters insurance with auto insurance is one strategy that is likely to convert a larger share of the renter market.

    Seeking New Ways To Maximize Your Customer Acquisition?

    Digital Media Solutions (DMS) is a technology-enabled, data-driven performance advertising solutions provider connecting consumers and advertisers. Contact DMS today to learn how our first-party data asset, proprietary technology and expansive digital media reach can help you scale your customer acquisition results.

    Contact DMS
    • Previous Article

      Lead Generation Predictions For 2021

      Lead Generation Predictions For 2021

      Where lead generation and customer acquisition is headed in 2021 has a lot to do with the way 2020 shaped consumer intent and behaviors.

    • Next Article

      How Long-Form Content Is Helping Brands Tell Their Stories

      How Long-Form Content Is Helping Brands Tell Their Stories

      A KFC mini-movie shocked Twitter, but the QSR is just the latest brand to try long-form branded content.

    Most Recent Articles

    • 4 Tips To Help Set Up Inbound Call Campaigns For Long-Term Success

      4 Tips To Help Set Up Inbound Call Campaigns For Long-Term Success

      Careful planning is needed both on the advertiser and publisher sides for a call campaign to perform well. These four tips can help you set up inbound call campaigns for long-term success.

      Read Article

    • 3 Top Lead Generation Best Practices To Scale Your Business

      3 Top Lead Generation Best Practices To Scale Your Business

      Set lead generation campaigns up for success by deploying best practices and optimizations.

      Read Article

    • What Is The Latest News On Apple And Push Notifications?
      10 months ago

      What Is The Latest News On Apple And Push Notifications?

      At this year’s annual WWDC, Apple announced that beginning in 2023, iOS 16 will support web push notifications.

      Read Article

    •  8 Email Subject Line Strategies That Can Help Drive Up Open Rates

      8 Email Subject Line Strategies That Can Help Drive Up Open Rates

      Subject lines represent a make-it or break-it opportunity to get email opened.

      Read Article

    • 4 Often Overlooked Ways To Address Email Inboxing Challenges

      4 Often Overlooked Ways To Address Email Inboxing Challenges

      While there are technical aspects to making sure an email message gets to its intended destination, it’s important to always keep the consumer top of mind.

      Read Article

    • 5 Ways To Manage Customer Acquisition Challenges

      5 Ways To Manage Customer Acquisition Challenges

      Customer acquisition challenges are universal, but finding the right solutions shouldn’t be hard. Here’s a look at 5 ways to overcome your customer acquisition challenges & drive the results you need.

      Read Article

    • What Is Happening With The Twitter Purchase?
      11 months ago

      What Is Happening With The Twitter Purchase?

      Elon Musk is taking over Twitter. Now what? Here’s what you need to know about the sale of Twitter and how you can proceed confidently on the social media platform.

      Read Article

    • 6 Ways To Create A Successful TikTok Marketing Strategy

      6 Ways To Create A Successful TikTok Marketing Strategy

      A successful TikTok marketing strategy is important in 2022, but advertisers don’t have to do it alone.

      Read Article

    • Tax Prep Advertising Can Use The Lessons of 2022 To Better Target Audiences In 2023

      Tax Prep Advertising Can Use The Lessons of 2022 To Better Target Audiences In 2023

      The DMS Tax Preparation Survey offers clues for tax preparation advertisers who want to reach consumers with relevant messaging, when and where they are shopping.

      Read Article

    • 3 Strategies To Modernize Lead Generation Campaigns

      3 Strategies To Modernize Lead Generation Campaigns

      Brands can modernize their lead generation strategies with versatile creative, customized plans and personalized re-engagement.

      Read Article

    • What Is A Publisher?

      What Is A Publisher?

      Do you want to understand the best way to reach the right people with the right messages at the right time? Consider partnering with publishers.

      Read Article

    • How To Boost Engagement By Using Video In Emails

      How To Boost Engagement By Using Video In Emails

      Video advertising within email is gaining momentum with brands, aligning with the overall growth of video in advertising.

      Read Article

    • It's Okay To Believe Advertising IRL > Metaverse
      11 months ago

      It's Okay To Believe Advertising IRL > Metaverse

      Metaverse marketing is likely to be a part of future strategies for brands & businesses, but many are taking a “wait and see” approach while relying on the “tried & true,” like performance marketing.

      Read Article

    • Tax Season Marketing Should Target Americans Filing Their Taxes Early To Pay Off Holiday Debt
      about 1 year ago

      Tax Season Marketing Should Target Americans Filing Their Taxes Early To Pay Off Holiday Debt

      Filing taxes early to get refunds is the top way Americans are planning to deal with holiday overspending.

      Read Article

    • Valentine’s Day Advertising Must Reach Shoppers Ready To Take Action
      about 1 year ago

      Valentine’s Day Advertising Must Reach Shoppers Ready To Take Action

      Valentine’s Day is a time for ecommerce brands to reach consumers in the mood for love – and shopping. DMS surveyed 250 adults in January and found that gift giving has extended beyond just couples.

      Read Article

    • Post-Holiday Personal Finance Marketing: What Converts Based On A Recent Consumer Survey
      about 1 year ago

      Post-Holiday Personal Finance Marketing: What Converts Based On A Recent Consumer Survey

      71% of Americans believe they possibly overspent during the holidays. The brands that best engage borrowers by demonstrating how their solutions will deliver quick relief are likely to see success.

      Read Article

    • What Are Data Signals?

      What Are Data Signals?

      Real-time data signals can pinpoint the individual consumers most likely to respond to your advertising when they are ready to take action.

      Read Article

    • The Top 5 Social Media Strategies For Lead Generation

      The Top 5 Social Media Strategies For Lead Generation

      These best practices can help advertisers set up social media campaigns that successfully generate leads while creating ongoing engagement.

      Read Article

    • What Is Real-Time Data?

      What Is Real-Time Data?

      Quality, real-time data helps understand consumer desires and predict future actions, allowing advertisers to get the right message in front of the right person at the right time to encourage action.

      Read Article

    • Consumers Start Holiday Product Searches On Google – Make Sure You Are Easy To Find
      over 1 year ago

      Consumers Start Holiday Product Searches On Google – Make Sure You Are Easy To Find

      To connect with consumers during the early phases of their holiday shopping, advertisers need to make sure their brands are easily discoverable in multiple places on Google.

      Read Article

    Return to Home
    DMS Logo

    Tech-Enabled, Data-Based Performance Advertising

    facebook icon twitter icon linkedin icon instagram icon

    © 2021 Digital Media Solutions, LLC. All Rights Reserved. Digital Media Solutions and its logos are trademarks or registered trademarks of Digital Media Solutions, LLC. All other company and product names referenced herein are the property of their respective owners.

    Digital Performance Advertising

    linkedin icon
    facebook icon
    twitter icon
    instagram icon

    Subscribe To News From DMS


    About DMS
    Toolset Solutions DMS Insurance DMS Performance Ad Market DMS Ecommerce Advertising DMS Consumer Finance DMS Education DMS Managed Services DMS Nonprofit Advertising DMS Subscription Advertising Newsroom DMS Insights Investor Info
    Contact Us
    (877) 236-8632 connect@DMSgroup.com Careers Become A DMS Advertiser Become A DMS Publisher
    DMS Proprietary Technology
    Aimtell Sparkroom ZipQuote
    Logins
    Aimtell Login DMS Exchange Login DMS Performance Ad Market Publisher Login Sparkroom Login ZipQuote Agent Login
    Privacy & Terms
    Privacy Policy Terms and Conditions Code of Conduct

    © 2022 Digital Media Solutions®, Inc. All Rights Reserved. Digital Media Solutions and its logos are trademarks or registered trademarks of Digital Media Solutions, Inc. All other company and product names referenced herein are the property of their respective owners.