Are the kids leading us in the right direction? A recent study released by Insurify, an online auto insurance broker service, indicates a shift to smaller vehicles among the youngest of our drivers. It’s an American release, but many U.S. statistics line up with Canadian ones, particularly when it comes to the cars we buy and drive. These latest results might mean the newest drivers are leading us in the right direction.
The survey broke down the generational habits along the lines we’re all familiar with:
- Baby Boomers: 1946–1964
- Generation X: 1965–1980
- Millennials: 1981–1996
- Generation Z: 1997–2012
Generation Z are the drivers who are paying the highest insurance rates (US$246 a month) in the United States. (Insurance rates in Canada vary by province, but in Ontario, a newly licenced 18-year-old male will average $1,182 a month.) It might be a factor in why they’re seeking out rides with great fuel economy, but there are also indicators that they’re not heading down the big, bigger, biggest footprints of their parents’ and grandparents’ generations. The most popular car for Gen Z? A Honda Civic. That’s followed by the Civic’s sibling, the Accord, then the Toyota Camry, the Nissan Altima, Toyota Corolla, Hyundai Elantra, then Sonata, the Chevrolet Malibu, Ford Fusion and the Nissan Sentra. Nary a pickup or SUV in the bunch.
What age-related factors affect car buying?
If you’ve been following the current race-to-upsize over the past couple of decades, and the increasing damage and death these bloated beasts have brought to our roads, especially in the U.S., you might think these young drivers as a harbinger of something good. It’s hard to predict the future: young people facing escalating living costs need fuel-efficient vehicles; if they’re living in urban cores they need smaller, more manageable rides; life hasn’t landed them in baby car seat territory just yet. Flipside, if they start making big salaries, it’s entirely possible they might revert to chasing after the big road warriors, just like previous generations.
But cast an eye to what the next age group up is buying: much of the same, with just two pickups (Ford F-Series, Chevrolet Silverado) coming in at numbers 6 and 10. It’s the Gen X and the Baby Boomers who put the mighty Ford F-Series in first place in both categories. In fact, pickups and SUVs take the top five spots for both Xers and Boomers. Are we seeing a final dying, dying of the might?
Insurify surveys its entire database, so when asked if the Gen Zers are simply running what someone else gave to them, the company replied, “it’s definitely possible that some of these cars are hand-me-downs. That said, a lot of new drivers start with older, used cars so the model year isn’t necessarily indicative of it being passed down.”
There is a geographical component, which isn’t much of a surprise in countries with vast rural areas and concentrated urban (often coastal) ones. The maps provided are interesting. Ford and Chevrolet dominate all but the coasts, though just like in maps posting voting results, the visuals can be misleading. In 1963, imports comprised just 5% of the vehicles on American roads. Today? The Big Three have just 38% of the market, though it visually appears they dominate the country.
Cassie Sheets, a data journalist from Insurify notes that, “people on the coast gravitate toward smaller, more affordable cars, most likely because of congestion and parking. A Toyota Camry or Honda Civic is more fuel-efficient and cost-effective than a Chevrolet Silverado if you’re stuck in Los Angeles traffic. Most East Coast cities are a nightmare to park in, so smaller cars are also helpful if you’re doing a lot of parallel parking.”
Politics can affect the car buying process
Another thing that separates the generations is perhaps even more interesting. “Ford’s all-American reputation may boost its popularity with Boomers. Half of U.S. adults aged 55 and older say they’re extremely proud to be Americans, compared to just 18 per cent of those aged 18–34, a 2023 Gallup poll found,” from the study. It’s revealing how politicized even something like vehicles has become. We’ve seen it with electrics, but this would indicate an even broader cut.
Speaking of electric vehicles, they’re still not hitting on anyone’s top 10 list, perhaps unsurprisingly: they’re still not being sold in big numbers. Insurify found that “deterrents like too few public charging stations and higher-than-average vehicle costs are still major barriers to EV adoption.” If they redo this survey in five years, they might find EVs creeping up, especially for younger generations. Resale prices are tumbling, and infrastructure is ramping up. These enviro-conscious kids might be all over them.
Do younger drivers want self-driving technology?
For all the headlines surrounding self-driving technology, you’d think the most tech-savvy generation in history would be lining up for it. You would be wrong. “Despite the hype, self-driving cars might not be the next big thing…28 per cent of Gen Z-ers said they don’t like the idea of giving control of their vehicle over to technology. Another 17 per cent said they’d never buy one because they love driving.” Any chance we can save some manuals while we’re at it?
According to Sheets, “most drivers like infotainment system, but ADAS (advanced driver assistance systems) might be a bigger draw for older drivers than younger ones. Gen Z is surprisingly wary about driving technology. Safety is one of their biggest concerns about autonomous vehicles.”
Something else all manufacturers have to consider: fewer young people are getting their licences. “60 percent of American 18-year-olds had a driver’s license in 2021, down from 80 percent in 1983,” reports Washington Post. As our population ages, it’s easy to see why manufacturers continue to cater to those with both numbers and buying power. Factor in the dawn of electric vehicles as well as car insurance rates that are set to trend higher (in a few places, over 50% higher), and it’s no wonder the industry is struggling to reinvent itself.
Finally, one fun discovery from the Insurify survey: what is the coveted outlier for each generation? For the Baby Boomers, it’s the Mercedes-Benz SL-Class. They own them at 298% more than the average rate of ownership. For Gen Xers? It’s that try-hard, buy-hard H2 Hummer, at 94% over average ownership. The Millennials are keeping it family-oriented, with the Kia Carnival at 71% over average. And our Gen Zs, with their fuel-efficient smaller rides? Their dream date is the Toyota GR86, at 239% more than average. That snapshot is perhaps the most indicative of the generational yearnings at the heart of car ownership.
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