Automotive Insurance

Global Automotive Insurance Market to Reach US$796.8 Billion by 2030

The global market for Automotive Insurance estimated at US$688.8 Billion in the year 2024, is expected to reach US$796.8 Billion by 2030, growing at a CAGR of 2.5% over the analysis period 2024-2030. Third-Party Liability Coverage, one of the segments analyzed in the report, is expected to record a 2.8% CAGR and reach US$496.7 Billion by the end of the analysis period. Growth in the Comprehensive Motor Insurance Coverage segment is estimated at 1.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$187.7 Billion While China is Forecast to Grow at 4.8% CAGR

The Automotive Insurance market in the U.S. is estimated at US$187.7 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$153.2 Billion by the year 2030 trailing a CAGR of 4.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 0.9% and 1.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.3% CAGR.

Global Automotive Insurance Market – Key Trends & Drivers Summarized

How Is Automotive Insurance Adapting to the Next Generation of Mobility?

The automotive insurance landscape is undergoing a sweeping transformation, spurred by technological advancements, evolving mobility patterns, and shifting consumer expectations. Traditional insurance models, which once revolved around static risk assessments and annual premiums, are being challenged by dynamic usage-based paradigms enabled by telematics, connected vehicles, and real-time data analytics. Today’s vehicles, especially newer models equipped with advanced driver-assistance systems (ADAS) and integrated connectivity, generate massive volumes of data on driving behavior, location, and vehicle health. Insurers are leveraging this data to offer personalized coverage plans, real-time policy adjustments, and more accurate risk pricing. Moreover, with the rise of shared mobility, subscription models, and multi-modal transport, the very definition of vehicle ownership is evolving, prompting insurers to design flexible, short-term, or on-demand policies. As digital ecosystems expand and mobility becomes increasingly fluid, automotive insurance is rapidly transitioning from a passive safety net into a proactive, data-driven service offering.

What Impact Do Connected Vehicles and Telematics Have on Risk Assessment?

The integration of telematics and vehicle connectivity has revolutionized how insurers understand and quantify risk. Instead of relying solely on demographic profiles, claim history, or geographic location, insurers can now assess risk based on real-world driving behavior—such as speed patterns, braking intensity, cornering habits, and even phone usage while driving. This granular data enables insurers to create more equitable pricing models that reward safe driving habits with lower premiums. Beyond underwriting, telematics systems also facilitate real-time accident detection, automated emergency assistance, and accurate incident reconstruction, expediting claims processing and fraud detection. Fleet managers benefit particularly from this shift, using aggregated insights to optimize driver training and reduce operational risk. Additionally, as vehicles become smarter, insurers are beginning to partner with automakers to access embedded data directly from the vehicle`s systems, creating seamless insurance experiences from purchase to renewal. This real-time, data-rich approach marks a significant departure from reactive insurance practices toward a model focused on prevention and personalization.

How Are Regulatory and Ethical Considerations Shaping the Insurance Experience?

As the automotive insurance industry becomes increasingly data-dependent, regulatory and ethical frameworks are evolving to address new challenges. Questions surrounding data privacy, consent, and ownership are at the forefront, especially as insurers collect sensitive behavioral and geolocation data. Governments and regulatory agencies are stepping in to ensure that telematics-based policies comply with consumer protection laws and that users are fully informed about how their data is being used. Additionally, efforts are underway to establish standardized protocols for data sharing between insurers, automakers, and third-party platforms. Fairness in algorithmic pricing models is another emerging concern, with watchdogs examining whether AI-driven underwriting could unintentionally introduce bias. Meanwhile, mandatory insurance schemes in various countries are being updated to accommodate the nuances of electric vehicles, autonomous driving, and ride-sharing fleets. These shifting regulatory landscapes are not just imposing constraints—they are also shaping a more transparent, equitable, and consumer-focused insurance ecosystem that balances innovation with accountability.

What Drives the Growth in the Automotive Insurance Market?

The growth in the automotive insurance market is driven by a convergence of technology evolution, consumer mobility trends, and changing vehicle ownership models. Firstly, the increasing prevalence of connected cars and telematics devices is enabling more precise, behavior-based underwriting, which improves risk management and customer segmentation. Secondly, the rise of electric vehicles (EVs), autonomous features, and smart mobility solutions is reshaping risk profiles, prompting insurers to develop specialized coverage for new technology-induced exposures. Thirdly, consumer demand for convenience and customization is driving the development of digital platforms, mobile-first interfaces, and usage-based or pay-as-you-drive insurance products. Furthermore, the growth of shared mobility services, including car rentals, ride-hailing, and vehicle subscriptions, is expanding the need for flexible, short-term insurance policies that adapt to changing usage patterns. Lastly, insurers are increasingly using AI, machine learning, and automation to streamline claims processing, improve fraud detection, and enhance customer engagement—contributing to market expansion and operational efficiency across the value chain.

SCOPE OF STUDY:

The report analyzes the Automotive Insurance market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Coverage (Third-Party Liability Coverage, Comprehensive Motor Insurance Coverage, Other Coverages); Vehicle Age (New Vehicle, Used Vehicle)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 34 Featured) -

• Allstate Corporation
• AXA S.A.
• Berkshire Hathaway Inc.
• Chubb Limited
• Erie Insurance Group
• Farmers Insurance Group
• Geico (Berkshire Hathaway)
• Generali Group
• Hartford Financial Services
• Liberty Mutual Insurance
• Mapfre S.A.
• MetLife, Inc.
• Munich Re Group
• Progressive Corporation
• Prudential Financial, Inc.
• QBE Insurance Group
• State Farm Insurance
• The Travelers Companies, Inc.
• Tokio Marine Holdings, Inc.
• Zurich Insurance Group

AI INTEGRATIONS
We`re transforming market and competitive intelligence with validated expert content and AI tools.

Instead of following the general norm of querying LLMs and Industry-specific SLMs, we built repositories of content curated from domain experts worldwide including video transcripts, blogs, search engines research, and massive amounts of enterprise, product/service, and market data.

TARIFF IMPACT FACTOR
Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by increasing the Cost of Goods Sold (COGS), reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher. Show more