Post Date September 29, 2012 — An Automobile Market Study conducted in 2012 shows more United States citizens have focused their new car purchase on smaller cars. GFK Automotive, an auto market research company used auto insurance rates and new car purchase data to prove American car buyers are preferring to buy smaller more fuel efficient cars. 30% percent of those people born between in the decade between 1980 and 1990 will buy a smaller car in 2013. The study does not show those buyers will buy a 2013 model year car. It shows those 23 to 33-year-old buyers will buy a smaller more fuel-efficient car. The purchase and auto insurance rates data also identified the second highest interest in smaller cars will be the Pre-Baby Boomers or those old people born before the end of World War Two.
There is a parallel smaller cars and higher auto insurance rates
In the market study, auto insurance rates show that retail consumers are from Generations X and Y. The majority of former retail consumers are those born between 1965 and 1979. The recent Auto Market Study conducted by GFK asked consumers from different age groups to rank different vehicle attributes which they find to be important in considering cars. The study identified both auto insurance rates and “taste” in vehicles of the different age groups when it comes to cars. A newer car model which is advertised in an exciting way or those sport type cars which are much faster have been shown to be popular among those groups defined as Generation X and Y. Drivers age 48 to 66 are part of this group. The 2012 GFK Automotive Study shows small cars can cost more to insure. Why? My opinion auto insurance rates are higher for smaller cars stems from medical and personal injury protection rates. Medical auto insurance rates are higher because the cost of those healthcare bills are much higher when a smaller car in involved in an auto accident.
My opinion is backed up by auto insurance claims data released by the Highway Loss Data Institute. HLDI show the high rates from auto insurance claims for those injured from smaller cars such as the Toyota Yaris are not inexpensive. This forces car insurance carriers to raise their auto insurance rates for personal injury protection coverage.
Michael E. Dortch
President & Managing Agent
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania 19446
(800) 807-0762 ext. 206