In today’s fluctuating economy, many young adults in the early stages of their careers are becoming increasingly concerned for the state of their future financial security. In fact, Deloitte reports that 30% of Generation Z (Gen Z) and 32% of millennials feel financially insecure, with over half of both groups living paycheck-to-paycheck.
With 64% of Malaysian Gen Zs highlighting their concerns towards emergency funds and savings, and 65% of Malaysian millennials researching their financial decisions for long-term fiscal resilience, it’s clear that these generations are interested in increasing both their financial literacy and resilience through as many avenues as possible.
According to a recent Gen Z Financial Health Survey, 35% of respondents have even postponed major purchases like cars in an effort to increase their savings. However, while public transportation usage, ride-hailing service popularity, and even short-term car rentals are on the rise, Malaysia is still an extremely car ownership focused country from an infrastructural perspective, with 73% of the survey respondents still indicating that buying a car is among their top 3 priorities. With this in mind, how can local Gen Z and millennials walk the economic tightrope of needing a car versus staying financially stable?
Perhaps, here, usage-based insurance could be the way forward.
What Is Usage-Based Insurance?
Usage-based insurance (UBI) is effectively a more sophisticated option for car insurance. While traditional car insurance calculates premiums based on factors like a car’s market value, manufacture year, driving record, or the exact type of car insurance, UBI allows users to purchase insurance based on set tier mileage plans by uploading their odometer reading to the insurer. Insurers who offer this product normally request this information via an app for tracking purposes, with some even providing a “panic button” feature based on selected plans and products.
As traditional insurance models, where low-risk drivers subsidise high-risk ones, don’t meet modern consumer expectations, automotive industry leaders predict that UBI is the future of car insurance. As a matter of fact, the Asia Pacific region is expected to lead the UBI market by 2032, with global growth projected to increase by 26.2% annually from 2023, according to Allied Market Research.
How Can Gen Z & Millennials Use UBI?
In this way, Gen Z and millennial consumers can opt for UBI to save on premiums without compromising on necessary coverage. As a bonus, UBI’s digital nature aligns well with the preferences of these tech-savvy generations, who are more likely to engage with insurance products like GoInsuran’s Go-Ubi product through digital channels, favouring apps and online platforms for managing their policies. Additionally, as cars become more connected and advanced in technology, the implementation of UBI becomes even more seamless, requiring fewer additional devices for data collection.
This digital engagement is not just about convenience; it also reflects a broader trend of these generations seeking out innovative, tech-driven solutions that offer both transparency and personalisation in services. In this sense, UBI is an increasingly accessible and attractive option for younger drivers, tailored to modern mobility needs. Ultimately, making car ownership more affordable and sustainable for young professionals allows them to adapt to economic realities while maintaining financial flexibility and security through smart insurance choices.
On a personal note, safe driving practices, general cost-saving, and accessible car and motor insurance is fairly important for us at GoInsuran to promote. With that, we’re launching “Renew Today, We Belanja Dashcam!”, a lucky draw to win a 70mai Dashcam A400. The campaign will be conducted from 1st August 2024 to 31st October 2024. Customers who buy or renew their car or motor insurance during the campaign duration can refer family or friends for renewals as well, with both referrer and referee eligible for entry into the lucky draw and receiving a guaranteed RM30 Shopee e-voucher.
Each successful referral renewal earns the referrer an entry into the dashcam giveaway, and the more successful referrals a referrer makes, the more they earn, increasing their chances of winning a dashcam. Six winners will be selected every month and announced on GoInsuran.com’s Facebook and Instagram accounts – so do give it a look if you’re interested!
