Global New Energy Vehicle (NEV) Insurance Market Growth (Status and Outlook) 2025-2031

The global New Energy Vehicle (NEV) Insurance market size is predicted to grow from US$ 28110 million in 2025 to US$ 115890 million in 2031; it is expected to grow at a CAGR of 26.6% from 2025 to 2031.

New Energy Vehicle (NEV) Insurance refers to a type of automotive insurance specifically designed to cover vehicles that fall under the category of "new energy vehicles." New energy vehicles are a subset of vehicles that use alternative energy sources and technologies for propulsion, with the primary focus on reducing emissions and dependence on fossil fuels. These vehicles include electric vehicles (EVs), plug-in hybrid vehicles (PHEVs), and other environmentally friendly propulsion technologies.

With the rapid adoption of new energy vehicles (NEVs), the insurance industry is undergoing a significant transformation. Unlike conventional car insurance, NEV insurance must cover specific risks related to battery systems, electric motors, electronic controls, and advanced driver assistance systems (ADAS). As a result, policy design, pricing models, and claims processing are evolving to accommodate these new challenges.

NEV insurance typically includes vehicle damage insurance, third-party liability insurance, battery protection insurance, fire and self-ignition coverage, and additional coverage options. Since the battery is the most expensive component in an EV, insurance companies are increasingly focused on managing claims related to battery damage. Moreover, as NEVs incorporate intelligent driving features, potential liability risks associated with ADAS and remote software updates (OTA) are reshaping the structure of insurance policies.

Market Growth and Regional Demand

China dominates the global NEV insurance market, with its rapid EV adoption driving massive demand for customized insurance products. By 2023, the China NEV insurance market had nearly 100 billion yuan , and it continues to grow. In Europe and North America, government incentives and carbon neutrality goals are fueling NEV insurance expansion, particularly in areas related to battery damage, charging risks, and high-voltage system safety. Emerging markets such as Southeast Asia and Latin America are still in the early stages of NEV adoption, but as infrastructure improves and regulations evolve, the demand for NEV insurance is expected to rise.

Insurance pricing models for NEVs are also changing. Due to high repair costs, especially for battery replacements, NEV insurance premiums are generally higher than those for internal combustion engine (ICE) vehicles. Additionally, because NEVs have different accident patterns and risk characteristics—such as battery thermal runaway, electrical system failures, and charging-related incidents—insurers are leveraging big data and telematics to refine their pricing strategies. Some companies have introduced usage-based insurance (UBI) models, where policy pricing is determined by real-time driving behavior and mileage.

Looking ahead, as battery technology improves, autonomous driving advances, and maintenance ecosystems become more efficient, NEV insurance products will become more tailored and competitive. Innovations such as pay-per-mile insurance (PAYD) and data-driven risk assessment models will enhance user experience and affordability. Furthermore, insurers may collaborate with automakers, battery manufacturers, and charging network operators to develop comprehensive risk mitigation solutions, creating new growth opportunities in the NEV insurance sector.

LPI (LP Information)' newest research report, the “New Energy Vehicle (NEV) Insurance Industry Forecast” looks at past sales and reviews total world New Energy Vehicle (NEV) Insurance sales in 2024, providing a comprehensive analysis by region and market sector of projected New Energy Vehicle (NEV) Insurance sales for 2025 through 2031. With New Energy Vehicle (NEV) Insurance sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US$ millions of the world New Energy Vehicle (NEV) Insurance industry.

This Insight Report provides a comprehensive analysis of the global New Energy Vehicle (NEV) Insurance landscape and highlights key trends related to product segmentation, company formation, revenue, and market share, latest development, and M&A activity. This report also analyses the strategies of leading global companies with a focus on New Energy Vehicle (NEV) Insurance portfolios and capabilities, market entry strategies, market positions, and geographic footprints, to better understand these firms’ unique position in an accelerating global New Energy Vehicle (NEV) Insurance market.

This Insight Report evaluates the key market trends, drivers, and affecting factors shaping the global outlook for New Energy Vehicle (NEV) Insurance and breaks down the forecast by Type, by Application, geography, and market size to highlight emerging pockets of opportunity. With a transparent methodology based on hundreds of bottom-up qualitative and quantitative market inputs, this study forecast offers a highly nuanced view of the current state and future trajectory in the global New Energy Vehicle (NEV) Insurance.

This report presents a comprehensive overview, market shares, and growth opportunities of New Energy Vehicle (NEV) Insurance market by product type, application, key players and key regions and countries.

Segmentation by Type:
Compulsory Insurance
Optional Insurance

Segmentation by Application:
PHEV
BEV

This report also splits the market by region:
Americas
United States
Canada
Mexico
Brazil
APAC
China
Japan
Korea
Southeast Asia
India
Australia
Europe
Germany
France
UK
Italy
Russia
Middle East & Africa
Egypt
South Africa
Israel
Turkey
GCC Countries

The below companies that are profiled have been selected based on inputs gathered from primary experts and analyzing the company's coverage, product portfolio, its market penetration.
Tesla
Progressive Corporation
AXA
GEICO
PICC
Ping An Insurance
China Pacific Insurance
Zhongcheng Insurance
INSAIC
Travelers Group
Liberty Mutual Group
Zurich
Nationwide
Aviva
MAPFRE

Please note: The report will take approximately 2 business days to prepare and deliver.