Market Research Future (MRFR) has published on the “Automotive Insurance Market”
Global Automotive Insurance Market
Car insurance is effectively a contract between yourself and an insurance company in which you agree to pay premiums in exchange for protection against financial losses stemming from an accident or other damage to the vehicle. Auto insurance can offer coverage for Vehicle damages, including car or another driver's vehicle, Property damage or bodily injuries caused by an accident, medical bills and/or funeral expenses associated with injuries sustained in an accident.
Global Automotive Insurance Market Size was valued at USD 652.6 billion in 2022. The Automotive Insurance Market industry is projected to grow from USD 623.9 billion in 2022 to USD 952.9 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.6% during the forecast period (2022 - 2030). Motor insurance covers cars, trucks, motorcycles, and other road vehicles. Its primary purpose is to provide financial protection against physical damage or bodily injury caused by traffic collisions, as well as liability that may result from incidents in a vehicle. Motor insurance may also provide financial protection against vehicle theft and damage caused by events other than traffic collisions, such as keying, weather, or natural disasters, and colliding with stationary objects.
Browse In-depth Detailed Research Report [Table of Content, List of Figures, List of Tables] of Automotive Insurance Market Trends
The global auto insurance market is growing due to an increase in the number of accidents, the implementation of stringent government regulations requiring the purchase of auto insurance, and an increase in automobile sales around the world. The non-life insurance market is dominated by motor insurance. The gross premium written for global non-life insurance is increasing, with the increase in gross premium written from motor vehicle insurance being the primary driver. Motor vehicle insurance growth is frequently important in explaining overall trends in the non-life sector because insurers collect the most premiums in this sector. This line of business has been identified as a key driver of non-life segment development in a number of countries.
The global automotive insurance market is characterized by the presence of many regional and local vendors. The global market is highly competitive, with all the players competing to gain a larger market share. The vendors compete based on cost, product quality, reliability, and aftermarket services. Therefore, vendors must provide cost-effective and efficient products to survive and succeed in a competitive market environment.
With a large number of players operating in the market studied, the market is highly fragmented in terms of market share. Companies have shifted their focus to providing customized solutions in order to attract more customers and expand their product portfolio. To gain access to new market opportunities, large insurance companies are looking to collaborate with emerging Insurtech startups. Allianz, State Farm, AXA S.A, Ping An Insurance, Geico, and Zurich AG are among the market's major players.
Car Insurance: Car insurance is a type of insurance policy that protects drivers and their vehicles from financial loss in the event of an accident, theft, or other unforeseen event. Drivers are typically required by law to have car insurance in order to operate a vehicle on public roads. Car insurance policies typically cover damage to the policyholder's vehicle as well as damage and injuries to other people and their property. There are various types of car insurance coverage options, such as liability coverage, which covers damages or injuries for which the policyholder is legally responsible; collision coverage, which covers damages to the policyholder's vehicle caused by an accident; and comprehensive coverage, which covers damages to the policyholder's vehicle caused by an accident.
Warranty: Warranty insurance is a type of insurance product that provides coverage for repair or replacement of parts or systems of a vehicle that fail due to manufacturing defects or other issues covered under the terms of the warranty. Warranty insurance is often offered by automobile manufacturers as a way to provide peace of mind to consumers and to protect their investments in a vehicle. There are several drivers that contribute to the growth of the warranty insurance market in the automotive industry. One of the main drivers is the increasing complexity of modern vehicles, which makes them more prone to defects and failures. Another driver is the increasing demand for extended warranty coverage, as consumers seek to protect their investments in their vehicles for longer periods of time.
GAP Insurance: GAP insurance, also known as Guaranteed Asset Protection insurance, is a type of car insurance that covers the difference between the value of a vehicle at the time it is totaled or stolen and the amount the borrower still owes on the car loan. It is often sold to borrowers who are financing a new or used car and who have a loan-to-value ratio (LTV) that exceeds the value of the vehicle. This can happen if the borrower has put little or no money down on the car or if the car has depreciated in value faster than the loan has been paid off.
PPI Insurance: PPI insurance, also known as payment protection insurance, is a type of insurance that is designed to protect individuals from financial hardship in the event that they are unable to make their loan or credit card payments due to unforeseen circumstances, such as unemployment, disability, or death. In the automotive insurance market, PPI insurance is typically offered as an optional add-on to a car loan or lease agreement, and can provide coverage for car payments in the event that the borrower is unable to make them due to one of the covered events.
Others: There are others several different types of automotive insurance products available, including liability insurance, collision insurance, and uninsured/underinsured motorist coverage. Liability insurance covers damages or injuries that an individual may cause to another person or their property while operating their vehicle, and is required by law in most states.
BY Insurance Type
Third Party Motor Insurance:
Third-party insurance is a type of insurance policy that covers the policyholder's legal liability for damages caused to another person or property. In the automotive insurance market, third-party insurance is often required by law and covers damages or injuries that the policyholder may cause to another person while operating a vehicle
Third Party Fire & Theft Motor Insurance:
Third-Party Theft and Fire Insurance is a type of auto insurance that covers damage to or loss of a vehicle due to theft or fire. It is typically required by law in many countries and is designed to protect the owner of the vehicle from financial losses caused by these types of incidents. There are several drivers that contribute to the demand for third-party theft and fire insurance in the automotive insurance market. These include the increasing cost of vehicles, the prevalence of auto theft and vandalism, and the high cost of repairing or replacing a damaged vehicle.
Comprehensive Motor Insurance:
Comprehensive insurance is a type of auto insurance that provides coverage for damages to your vehicle that are not caused by a collision with another vehicle or object. It may also provide coverage for theft, vandalism, and other perils. Some of the drivers of the comprehensive insurance market include the increasing ownership of vehicles, the growing awareness of the importance of insurance, and the increasing frequency and severity of natural disasters and other perils that can damage vehicles. There are also several restraints on the comprehensive insurance market.
The automotive insurance industry is a broad market that covers a variety of types of insurance, including personal auto insurance for individuals and their personal vehicles, commercial auto insurance for businesses and their vehicles, ride-sharing insurance for drivers who use their personal vehicles for ride-hailing services, fleet insurance for a company's fleet of vehicles, and collector car insurance for classic or antique vehicles
North America: The North American automotive insurance market is a major industry, with millions of drivers purchasing coverage to protect themselves and their vehicles. Some key facts about the North American automotive insurance market include: The United States is the largest automotive insurance market in North America, with about 250 million registered vehicles and over 240 million drivers. On the other and the Canadian automotive insurance market is also significant, with about 30 million registered vehicles and over 30 million drivers. The North American automotive insurance market is highly competitive, with a wide range of insurance companies offering coverage options to drivers.
Europe: The European automotive insurance market is a complex and dynamic industry, with a variety of government agencies and private insurance companies working to provide coverage options for drivers across the region. Moreover, minimum coverage requirements for drivers vary by country, with most requiring at least liability coverage to protect against damages or injuries caused to other parties in an accident. Some countries also require additional coverage, such as personal injury protection or uninsured motorist coverage. In Europe, Prevalence Of Pay-As-You-Drive (PAYD) is type of policies that are based on the idea that drivers who drive less are less likely to be involved in accidents, so they should pay lower premiums. These policies use telematics devices to track a vehicle's mileage and driving habits, and premiums are calculated based on these factors. PAYD policies are relatively common in Europe, but they are less prevalent in other regions.
Asia-Pacific: The Asia-Pacific region is a diverse and dynamic market for automotive insurance, with a range of countries at different stages of development and with different insurance systems in place. In general, the demand for automotive insurance in the Asia-Pacific region is driven by the growth in the number of vehicles on the road and the increasing awareness of the importance of insurance coverage. The region is home to some of the world's largest automotive markets, including China, Japan, and India, and has seen strong economic growth in recent years. The Asia-Pacific automotive insurance market is highly competitive, with a mix of state-owned and private insurers offering a range of products to meet the needs of consumers. The market is characterized by a range of coverage options, including liability coverage, collision coverage, and comprehensive coverage.
Middle East and Africa: The Middle East and Africa region has a diverse and rapidly evolving automotive insurance market. The demand for automotive insurance in the region is driven by factors such as the increasing number of vehicles on the road, economic growth, and the development of infrastructure. There are a number of challenges facing the automotive insurance market in the Middle East and Africa, including the high rate of traffic accidents and the lack of regulation in some countries. In addition, the market is highly sensitive to economic and political changes, with fluctuations in oil prices and political instability in some countries impacting the demand for insurance. Despite these challenges, the automotive insurance market in the Middle East and Africa is expected to continue growing in the coming years, driven by factors such as the increasing urbanization and wealth of the region's population, as well as the growing demand for vehicles. The use of technology, such as telematics and the adoption of autonomous vehicles, is also expected to drive innovation and growth in the market.
South America: The automotive insurance market in South America is a growing industry, with increasing demand for insurance products to cover vehicles in the region. There are several factors driving this growth, including the increasing number of vehicles on the roads, the development of new technologies and safety features in vehicles, and the growing awareness of the importance of insurance among consumers. In South America, the automotive insurance market is dominated by a few large players, with many smaller, regional insurers also operating in the market. The majority of the market is concentrated in Brazil, which is the largest market for automotive insurance in the region.