While millennials choose to protect their technology and their pets more than other generations, they are overlooking basic protection needs, according to research.
The demographic group is currently the largest generation of current home renters, but may have alternate priorities than other generations when it comes to protecting their belongings with insurance.
A new study conducted by Liberty Mutual Insurance reveals that 43% of millennials are renters, and less than half (42%) of those millennials have renters' insurance.
The study also found that while millennials are choosing specific protection for their personal technology and even their pets more than other generations, one quarter of millennials are looking for ways to cut back on their auto, home and renters' insurance.
A lack of knowledge is the driving factor for insurance gaps, which is leaving them exposed to potential loss or damage. A third (33%) of millennials said it never occurred to them to get renters' insurance, for example, and 31% believe the process is too complicated.
“The unexpected is inevitable, and it’s important for all generations to understand the importance and value of having good insurance coverage customized to individual needs,” said Emily Fink, CMO, global retail markets at Liberty Mutual Insurance, in a release.
Nearly one-third (29%) of those surveyed report having special insurance coverage that protects their technology. Of the millennial renters who have personal technology insurance, half (51%) do not have renters insurance, indicating that smartphones and computers may be considered more important for some than other belongings.
While millennials indicate they’re trying to save money, their personal property value is still considerable—the study found that millennials own on average more than $2,000 in jewelry. However, only 22% of millennials find it extremely important to have insurance to cover their valuables. with just 20% opting for additional coverage for these items.
Pets are also important to millennials. The study indicates the group is the most likely generation to purchase or adopt a dog or cat in the next year and, as pet parents, they make trade-offs for their pet’s well-being more than any other generation.
More than half (57%) of millennials own a pet and almost a third (31%) of millennial pet owners report having pet insurance, compared to Gen Xers and boomers (15% and 8% respectively). Millennials are also more likely to skip their own medical treatments or appointments to cover their pet’s healthcare costs (37%) compared to Gen Xers (28%) and boomers (21%).
Liberty Mutual Insurance conducted a quantitative survey that looked at home and auto topics among adults across the United States. The survey was conducted August 2018, among 3,023 consumers 18 years of age and older. Overall the findings from the study can be interpreted at a 90% confidence interval.