Two-Wheelers / Motorcycles Insurance

Global Two-Wheelers / Motorcycles Insurance Market to Reach US$61.2 Billion by 2030

The global market for Two-Wheelers / Motorcycles Insurance estimated at US$50.0 Billion in the year 2024, is expected to reach US$61.2 Billion by 2030, growing at a CAGR of 3.4% over the analysis period 2024-2030. Zero Depreciation Policy Type, one of the segments analyzed in the report, is expected to record a 3.2% CAGR and reach US$37.5 Billion by the end of the analysis period. Growth in the Third Party Motor Insurance Policy Type segment is estimated at 4.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$13.6 Billion While China is Forecast to Grow at 6.4% CAGR

The Two-Wheelers / Motorcycles Insurance market in the U.S. is estimated at US$13.6 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$12.2 Billion by the year 2030 trailing a CAGR of 6.4% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.4% and 2.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.0% CAGR.

Global Two-Wheelers / Motorcycles Insurance Market - Key Trends & Drivers Summarized

How Are Usage-Based and Telematics Insurance Transforming the Two-Wheeler Coverage Landscape?

The two-wheeler insurance market is undergoing a digital evolution, powered by the proliferation of telematics, smartphone-based driving apps, and embedded sensors. Traditional flat-rate insurance models are giving way to usage-based insurance (UBI), where premiums are calculated based on riding behavior, distance traveled, time-of-day usage, and compliance with road safety. With the help of real-time data collected via mobile apps or installed tracking devices, insurers are tailoring packages to reflect actual rider risk profiles, reducing fraudulent claims and improving profitability.

In emerging markets, where motorbike usage is widespread and regulation enforcement is variable, telematics enables insurers to gain better visibility into customer behavior. Riders with consistent safe habits—such as smooth braking, speed regulation, and regular maintenance—can access loyalty discounts, while risky behavior triggers alerts or policy adjustments. This tech-driven transparency also empowers customers, who can track their risk scores and adjust habits to reduce premiums. Fleet operators, especially in delivery or ride-hailing businesses, are mandating telematics-integrated insurance for better cost control and compliance.

What Is the Impact of Digital Platforms and Embedded Insurance on Policy Distribution?

Digital distribution channels have revolutionized the way two-wheeler insurance is bought and managed. Insurtech platforms now offer instant policy comparisons, personalized quotes, AI-assisted chatbots, and paperless onboarding—all optimized for mobile-first interactions. This accessibility has expanded insurance penetration in underinsured regions, where traditional agency models struggled with cost and reach. Embedded insurance—offered at the point of vehicle sale or leasing—is also gaining momentum. Buyers can now purchase or renew insurance directly through OEM apps or dealer platforms, often bundled with financing, service plans, or theft protection.

In response, insurance providers are launching modular products: base coverage augmented by optional add-ons like accidental damage, engine protect, zero-depreciation, pillion cover, and roadside assistance. These add-ons are often toggled within customer portals, offering flexibility rarely seen in traditional policies. Additionally, micro-insurance options with shorter durations and low premiums are popular among seasonal or low-mileage riders, improving inclusivity. Backend integration with OEMs and ride-sharing platforms enables automated coverage activation, seamless claims processing, and real-time policy status tracking.

Why Are Risk Profiles and Use Cases Expanding Across the Two-Wheeler Ecosystem?

The two-wheeler landscape is evolving to include a broader array of risk profiles—from urban commuters to long-distance tourers, gig-economy riders, and electric fleet operators. Insurance solutions are now tailored not just to the vehicle type but also to rider demographics, usage intensity, and regional risk levels. For example, gig riders operating in high-traffic zones may require flexible on-duty-only coverage, while electric two-wheelers in eco-sensitive areas may qualify for discounts based on lower emissions and range-limiting features.

Emerging segments such as electric scooters and high-performance motorcycles bring unique insurance requirements. E2Ws, often connected via apps and equipped with immobilizers and GPS tracking, are attractive to insurers due to lower theft risk and more precise claims assessment. On the other hand, superbikes require coverage that includes high-value parts, track-day damage, and international usage—features absent from conventional packages. As two-wheelers serve a wider range of economic, lifestyle, and commercial functions, insurance products are becoming more customized, dynamic, and digitally managed.

The Growth in the Two-Wheelers / Motorcycles Insurance Market Is Driven by Several Factors…

The surge in the two-wheeler insurance market is powered by multiple structural and technological forces. First, the proliferation of telematics and smartphone-based UBI platforms is enabling insurers to assess risk with unprecedented granularity, reducing underwriting ambiguity and promoting safer driving habits. Second, the rise of digital distribution models—via mobile apps, insurtech marketplaces, and embedded OEM platforms—is expanding reach, lowering acquisition costs, and improving customer experience.

Simultaneously, the diversification of two-wheeler use cases—commuting, delivery, touring, and rental fleets—necessitates flexible, usage-based, and rider-specific policy structures. The electrification of the two-wheeler segment is also playing a pivotal role, with E2Ws offering lower risk profiles and IoT compatibility that supports premium adjustment and remote damage diagnostics. Finally, regulatory mandates in many countries now require proof of insurance at registration or vehicle financing stage, further institutionalizing coverage across all rider segments. Together, these developments are forming the foundation for robust and sustained growth in the global two-wheeler insurance ecosystem.

SCOPE OF STUDY:

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

Segments:
Policy Type (Zero Depreciation Policy Type, Third Party Motor Insurance Policy Type, Comprehensive Motor Insurance Policy Type); Distribution Channel (Online Distribution Channel, Offline Distribution Channel)

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 43 Featured) -

• ACKO
• Acko (two-wheeler focus)
• Allianz (Motorcycle Division)
• Allstate Insurance
• Aviva
• AXA (Motorbike Cover)
• Bajaj Allianz General Insurance
• Bikers Insure
• CG Corp Global (Coral Isle)
• Clements International
• Dairyland Insurance
• East West Insurance (Malaysia)
• Farmers Insurance
• GEICO
• Harley-Davidson Insurance
• HDFC ERGO
• ISU Global Insurance
• Let’s Ride Insurance (UK)
• Mapfre (Moto Insurance)
• Metropolitan (Progressive)

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