Gen Z Drivers: Navigating the Road to the Future
Gen Z, the generation born between 1997 and 2012, is reshaping many aspects of modern life, and their relationship with driving is no exception. Recent surveys reveal a complex attitude: while they are often hesitant to embrace the wheel, they are equally wary of handing over control to autonomous vehicles.
Shifting Gears: Driving Trends Among Young Adults
Driving is no longer a rite of passage for many young people. Data from the Department of Transportation (DOT) shows a decline in the number of 18-year-olds with driver’s licenses. In 1983, 80% of this age group had a license, but by 2022, that number had fallen to 60%.
This trend may be due to various reasons, including the cost of owning a car, a preference for urban living with access to public transportation, and the rise of ride-sharing services.
The Autonomous Dilemma
While Gen Z may not be car enthusiasts, they’re not readily embracing self-driving technology either. An Insurify survey found that a significant portion of Gen Z expressed uncertainty or aversion toward self-driving cars. The greatest concern was relinquishing control to technology, followed by safety concerns.
“I have a phobia of driving, but I’ll be damned if I let a machine do that.” – An Insurify survey respondent
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This reluctance is understandable, given the controversies surrounding autonomous vehicle safety. The National Highway Traffic Safety Administration (NHTSA) recalled over 2 million Tesla vehicles in 2023 due to crashes associated with its Autopilot feature. As these technologies evolve, automakers face the challenge of convincing younger drivers of their safety and reliability.
Key Findings of the Insurify Survey:
- Uncertainty Reigns: 17% of respondents said they didn’t know enough about autonomous cars, while 18% wanted to see how safe they were before buying. The majority of Gen Z drivers expressed skepticism regarding self-driving technology.
- The Non-Drivers: 26% of Gen Zers don’t drive, with common reasons being lack of a driver’s license (42%), cost (28%), and disinterest (15%).
- The Appeal of Autonomy: 19% of Gen Z expressed excitement over self-driving vehicles.
Safety and Mobility Benefits
Despite Gen Z’s cautiousness, autonomous vehicles offer potential safety and mobility advantages. A study by Swiss Re, in partnership with Waymo, showed that self-driving cars significantly reduce the risk of collisions. In their tests, Waymo’s vehicles had zero bodily injury claims in over 3.8 million miles driven, compared to the human driver baseline of 1.11 claims per million miles.
Autonomous vehicles could also improve mobility for people with disabilities. Several Gen Z non-drivers mentioned health conditions as a reason for not driving. The Insurance Institute for Highway Safety (IIHS) has found that advanced driver-assistance systems (ADAS) make driving safer. Automatic emergency braking, for example, reduces front-to-rear collisions by 50%.
The Insurance Equation
While these systems may lead to fewer accidents, cars with ADAS are often more expensive to insure. An Insurify analysis of nine new vehicles with ADAS features revealed an average annual full-coverage premium of nearly $3,000, compared to the national average of $2,329.
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According to Buddy Parkhurst, a licensed insurance agent with Insurify, the cost of this technology will eventually decrease. Though the U.S. is still “at least a decade away” from the point that insurers will reconsider accident liability between autonomous cars and human drivers, the person behind the wheel is still responsible for any accidents caused by malfunctioning technology.
The Road Ahead
Convincing Gen Z to embrace autonomous vehicles will require automakers to address safety concerns and rebuild trust. The industry must showcase the reliability and benefits of these technologies to win over the next generation of drivers. If successful, the adoption of self-driving cars could lead to safer roads for all.
