This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Gen Y's Favorite Cars, Insured

It's probably no surprise that young people prefer sporty compact cars.

J.D. Power and Associates' Power Information Network this week released a list of new-car models with the highest percentage of Gen Y (ages 16-35) owners.  Volkswagens and Acuras dominate the list.

Yet there is one big surprise: The most powerful car in the lineup is the cheapest to insure, which may matter a little more to this expensive-to-insure demographic. (See “ The cheapest age for car insurance.”)

We created a typical Gen Y buyer -- a 24-year-old male -- and dropped him in a hipster hot spot: Seattle. We gave him a clean driving record and chose a leased, sporty or high-tech variant of each of the models on the list.  Using the cheapest rate we found in our comparison-shopping engine, annual premiums for the top 10 Gen Y favorites ranged from $2,039 a year for the 370-horsepower Dodge Charger R/T to $3,236 for the 237-horsepower Mitsubishi Lancer Ralliart.

Here's how Generation Y's top 10 stacked up:

Model, Gen Y % and annual premium

  • Acura ILX 2.4 Premium: 40.2%  $3,016
  • Acura TSX Tech 34.3%  $2,516
  • Dodge Charger R/T: 34.7%  $2,039
  • Mazda 3 S: 40.2%  $2,480
  • Mitsubishi Lancer Ralliart: 48.6%  $3,236
  • Scion tC: 50.2%  $2,571
  • Subaru Impreza Sport Premium: 37.4%  $2,596
  • Volkswagen Golf TDI: 34.7%  $2,367
  • Volkswagen GTI: 44.5%  $2,727
  • Volkswagen Jetta GLI: 35.2% $2,503

For context, we also put the same driver into the most boring car we could find and into one of the most exciting.  Our hipster would pay $2,126 a year to insure a 178-horsepower 2013 Toyota Camry SE -- and $2,854 to insure a 505-horsepower Chevrolet Corvette Z06.

 “There's no getting around your age,” says Penny Gusner, consumer analyst for

“You're paying more for the added statistical likelihood that you will crash a car. You're paying more for the fun urban neighborhood you live in. But you're also paying more because cars driven mainly by younger people tend to have more claims. Insurers notice.” (See “ How a car gets a bad reputation.”)

Methodology: compared quotes for a 24-year-old male driver, no accidents or violations, driving 12,000 miles a year with a 10-mile one-way commute to work. He has good credit, is single, is a college graduate and is buying $100,000 in bodily injury liability coverage (up to $300,000 per accident) and $50,000 in property damage liability coverage. He carries a $500 deductible on comprehensive and collision and has purchased uninsured motorist coverage. He also has bought $10,000 in personal injury protection.


Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs