Self-Driving Car Insurance

Global Self-Driving Car Insurance Market to Reach US$59.8 Billion by 2030

The global market for Self-Driving Car Insurance estimated at US$27.4 Billion in the year 2024, is expected to reach US$59.8 Billion by 2030, growing at a CAGR of 13.9% over the analysis period 2024-2030. Third Party Liability Coverage, one of the segments analyzed in the report, is expected to record a 12.3% CAGR and reach US$36.4 Billion by the end of the analysis period. Growth in the Comprehensive Coverage segment is estimated at 16.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$7.5 Billion While China is Forecast to Grow at 18.3% CAGR

The Self-Driving Car Insurance market in the U.S. is estimated at US$7.5 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$12.6 Billion by the year 2030 trailing a CAGR of 18.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 10.3% and 12.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 11.0% CAGR.

Global "Self-Driving Car Insurance" Market – Key Trends & Drivers Summarized

Will Autonomous Vehicles Reshape Traditional Auto Insurance Forever?
As the era of autonomous vehicles (AVs) dawns, the auto insurance industry is undergoing a seismic shift. Self-driving cars, equipped with advanced sensors, AI decision-making systems, and predictive analytics, significantly reduce human error—historically the primary cause of accidents. This evolution is challenging existing risk assessment models, liability frameworks, and premium structures. Traditional auto insurance, which evaluates driver behavior and demographics, is becoming obsolete in a world where the “driver” might be an algorithm. With OEMs and software developers now sharing responsibility for AV operation, insurers must redefine policy structures to cover hardware failures, cybersecurity breaches, and software malfunctions. In response, new insurance models such as product liability coverage and usage-based policies are gaining traction. The integration of telematics and real-time vehicle diagnostics is enabling insurers to offer dynamic, data-driven premiums. Meanwhile, regulatory uncertainty around AV classifications and responsibilities is adding complexity, prompting insurers to partner with AV developers for data access and co-develop insurance frameworks. The shift is not just technical—it’s philosophical, redefining how risk is distributed across entities involved in autonomous mobility.

How Are Tech Partnerships and Data Access Revolutionizing Insurance Models?
Data is the lifeblood of the emerging self-driving car insurance ecosystem. AVs generate vast volumes of data—from lidar scans and GPS paths to decision-making logs and incident replays. This data enables granular risk profiling and real-time accident analysis, fundamentally transforming claims processing and fraud detection. Insurtech firms and traditional insurers alike are forging partnerships with AV developers and fleet operators to gain access to this critical information. These collaborations are giving rise to embedded insurance models, where coverage is integrated directly into the vehicle’s purchase or subscription. Moreover, blockchain technology is being explored to securely store and share vehicle data across stakeholders, ensuring transparency and accountability. API-driven ecosystems are also facilitating interoperability between insurers, OEMs, and mobility platforms. Machine learning algorithms are being used to analyze behavioral and operational metrics to underwrite highly customized policies. These innovations are replacing traditional actuarial models with real-time, dynamic underwriting engines. As a result, insurers capable of adapting to this new data paradigm are emerging as key players in the evolving mobility landscape.

What Legal and Regulatory Dynamics Are Steering This Disruptive Market?
The regulatory environment surrounding self-driving car insurance is still in its formative stages but is evolving rapidly to accommodate the unique risks and responsibilities associated with autonomous driving. Key issues include defining legal liability in mixed-traffic environments, establishing data ownership, and regulating the insurance obligations of AV manufacturers versus end-users. Countries like the U.S., Germany, and Japan are pioneering new frameworks that mandate minimum insurance coverage for AVs while also addressing product liability implications. In many regions, autonomous test vehicles are required to maintain dual insurance coverage—traditional and tech-specific—until clear regulations are established. Furthermore, regulators are emphasizing cybersecurity coverage, given the increasing threat of vehicular hacking and data breaches. Standardization bodies are working to create safety benchmarks and testing protocols that insurers can use to calibrate premiums. These developments are encouraging collaboration between public institutions, tech firms, and insurers to shape a cohesive regulatory landscape. Legal scholars and insurance experts are also advocating for no-fault liability systems to simplify claims and litigation in autonomous incidents.

The Growth In The Self-Driving Car Insurance Market Is Driven By Several Factors...
The rise of self-driving car insurance is propelled by advancements in AI, increased AV adoption, changing liability structures, and evolving consumer expectations. Technologically, improvements in real-time diagnostics, vehicle-to-everything (V2X) communication, and machine learning risk assessments are enabling more precise, data-centric underwriting. The growing deployment of AV fleets in urban environments—particularly for ride-hailing, delivery, and logistics—is creating demand for commercial autonomous insurance packages. On the consumer side, the shift toward mobility-as-a-service and subscription-based car ownership is leading to demand for bundled, flexible insurance offerings. Moreover, regulatory evolution and pilot programs are laying the groundwork for mandatory AV insurance protocols. Collaborations between AV developers, insurers, and regulators are enhancing market trust and enabling scalable insurance models. Finally, increased investment in insurtech startups and strategic partnerships is accelerating innovation in this space. As AV technology becomes more widespread and public confidence grows, the self-driving car insurance market is expected to experience exponential growth, redefining the role of insurance in future mobility ecosystems.

SCOPE OF STUDY:

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

Segments:
Insurance Coverage (Third Party Liability Coverage, Comprehensive Coverage); Distribution Channel (Independent Agents / Brokers, Direct Sales, Other Distribution Channels); Application (Personal, Commercial)

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 41 Featured) -

• Adrian Flux Insurance Services
• Allianz SE
• Driveway Software
• Ford Motor Company
• GEICO
• General Motors
• INSHUR
• Intact Financial Corporation
• Liberty Mutual Insurance
• Mobileye
• Nissan Motor Corporation
• Octo Telematics
• Progressive Corporation
• Sompo Japan Insurance
• Tesla, Inc.
• Travelers Companies, Inc.
• TuSimple
• Volkswagen Group
• Waymo LLC
• Zurich Insurance Group

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 artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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.