Automotive Insurance Market Size was valued at USD 652.6 Billion in 2022. The Automotive Insurance industry is projected to grow from USD 682.6 Billion in 2023 to USD 978.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.60% during the forecast period (2023 - 2032). Increased demand for Automobiles and automotive insurance services and products are the key market drivers enhancing market.
Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review
The Auto Insurance Market CAGR for automotive insurance is being driven by rising traffic incidents and regulatory needs. The rising demand for automotive insurance for accidents like physical damage or bodily injury, traffic collisions, theft, and fire has increased the influence on insurance companies to invest in and create products having high coverage, low growth, and offer financial security for the medical injury or any other damages. There is growth in usage-based insurance and insurance telematics in motor insurance.
Automotive insurance has become important as a result of the increase in incidents in recent years, including drunk driving, traffic injuries, and distracted driving while speeding. Most vehicle owners depend on their automotive insurance to safeguard them from potential financial losses, including damages to other passengers or pedestrians and drivers. Further, automotive insurance includes coverages that help compensate the beneficiaries of policyholders in the event of their passing. Insurance availers have raised the number of coverages in their products to enhance the user interface experience and remain ahead of their rivals in the market in the coming years. The state and federal governments make automotive insurance needed at the time of vehicle registration to protect clients against unfair costs anticipated to increase in the following years and make sure that insurance businesses remain financially stable.
The automotive industries have a significant opportunity to grow their offerings in the market. Companies give medical coverage, bodily injury and property damage coverage, comprehensive coverage, and third-party liability coverage. As a result, it is foreseen that the insurance providers would have profitable chances to innovate and expand their product offerings by including particular coverages such as pay-as-you-drive policies. Rather than a typical number of miles an individual travels in a year, this includes the miles traveled by each person. These coverages are provided in combination options that are simple for clients to opt for such plans that best suit their requirements. The strong growth in the automotive industry over the coming decade is anticipated to fuel the auto insurance market throughout the world. Thus, driving the Automotive Insurance market revenue.
However, the lack of understanding related to auto insurance coverage is a significant factor limiting the growth of the automotive insurance business. Also, data security & privacy is a concerning factor for consumers that may hinder the growth of auto insurance globally.
The Automotive Insurance Market segmentation, based on coverage, includes Third-Party Liability Coverage, Comprehensive Motor Insurance, and Others. The third-party liability coverage segment dominated the market, accounting for the largest market revenue. Third-party coverage motor insurance protects against the claims of damages and losses endured by uninsured drivers which are not covered by the insurance policy. Further, the comprehensive coverage segment is the fastest growing segment as these insurance holders can utilize to repair or replace their car if it suffers damage in an accident or gets stolen.
The Automotive Insurance Market segmentation, based on vehicle age, includes New Vehicles and Used Vehicles. The new vehicles segment dominates the market as these vehicles are not owned by anybody other than dealers, distributors, or manufacturers and are not registered on the market. Moreover, the manufacturer, supplier, or dealer provides several advantages to customers financing new vehicles. Further, the used vehicle is the fastest growing segment due to the increase in the demand for old automobiles with customized models, changes in preference of the company towards vehicles, and a limited budget for car insurance.
Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review
By region, the study gives market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Automotive Insurance market area dominates the market because of the rising disposable income of the population, technological advancement, and continued research and development activities in autonomous vehicles and their security. The rising traffic accidents, injuries, collisions, and property damage is increasing the adoption of automotive insurance in the North American region.
Further, the prime countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, Japan, India, China, Australia, South Korea, and Brazil.
Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review
The Asia-Pacific Automotive Insurance Market accounts for the second-largest market share due to the proliferation of mobile connectivity and smartphone technology and rising sales of telematics-equipped vehicles in this region. Moreover, China’s Automotive Insurance market held the largest market share, and the Indian Automotive Insurance market was the rapid-growing market in the Asia-Pacific region.
Europe's Automotive Insurance market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the significant regulatory support in adopting vehicle telematics in this region. Further, the German Automotive Insurance market held the largest market share, and the UK Automotive Insurance market was the rapid-growing market in the European region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Automotive Insurance market grow even more. Market players are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Automotive Insurance industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Automotive Insurance industry to benefit clients and increase the market sector. In recent years, the Automotive Insurance industry has offered some of the most significant advantages to automobile safety. Major players in the Automotive Insurance market, including AXA SA Group, GEICO, Liberty Mutual Insurance, Bajaj Allianz, Allstate Insurance Company, The Progressive Corporation, Insurance & Mobility Solutions (IMS), American International Group Inc., Insurethebox, Verisk Analytics Inc., and others, are attempting to increase market demand by investing in research and development operations.
GEICO is a private American auto insurance company headquartered in Chevy Chase, Maryland. The company is a completely owned subsidiary of Berkshire Hathway that offers coverage for more than 24 million motor vehicles possessed by more than 15 million policyholders. The company writes private passenger automobile insurance in 50 states of the US and the District of Columbia. In May 2021, GEICO is partnering with AI technology company Tractable to accelerate its auto claim and repair processes. Tractable is the creator of an exclusive computer vision technology that has been trained on a huge number of historical claims. The AI can evaluate vehicle damage on the basis of photos, like a human appraiser. GEICO is aiming to use the technology of Tractable to precisely review estimates within seconds while minimizing administrative overheads.
AXA SA is a French multinational insurance company headquartered in the 8th arrondissement of Paris. The company also offers investment management and other financial services. The company operates mainly in Western Europe, the Indian Pacific region, North America, and the Middle East. The company is a conglomerate of independently run businesses operated as per the regulations and laws of many countries. It is a part of Euro Stoxx 50 stock market index. In August 2021, the insurance giant AXA SA Group developed STeP, a new digital claims solution to assist customers in simplifying their motor insurance process. AXA claimed that via Step, the time taken from client notification to partners maintaining repair or salvage is now down to minutes.
March 2022:Â KaraMD announced Pure Health Apple Cider Vinegar Gummies, a vegan gummy aimed to aid ketosis, digestion regulation, weight management, and encourage greater levels of energy.
July 2022:Usage-based insurance cover add-on cover-Pay As You Consume (PAYC) was launched by Bajaj Allianz. The company they are the first to introduce and launch this type of insurance under the Insurance Regulatory and the Development Authority of India (IRDAI), which allows add-on sophisticated insurance for motor companies.
May 2022: The acquisition of technology assets of Insurance Portal Services was completed by Liberty Mutual Insurance. This will assist Liberty insurance company in utilizing the embedded capabilities of insurance for the automotive industry.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 652.6 Billion |
| Market Size 2023 | USD 682.6 Billion |
| Market Size 2032 | USD 978.2 Billion |
| Compound Annual Growth Rate (CAGR) | 4.60% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, The Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Coverage, Vehicle Age, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, Japan, India, China, Australia, South Korea, and Brazil |
| Key Companies Profiled | AXA SA Group, GEICO, Liberty Mutual Insurance, Bajaj Allianz, Allstate Insurance Company, The Progressive Corporation, Insurance & Mobility Solutions (IMS), American International Group Inc., Insurethebox, Verisk Analytics Inc. |
| Key Market Opportunities | Increasing traffic incidents and regulatory requirements throughout the automotive industry. |
| Key Market Dynamics | Increased demand for automobiles and auto insurance products & services. |
Automotive Insurance Market Highlights:
Frequently Asked Questions (FAQ) :
The Automotive Insurance Market size was valued at USD 652.6 Billion in 2022.
The global market is foreseen to grow at a CAGR of 4.60% during the forecast period, 2023-2032.
North America had the largest share of the global market
The key players in the market are AXA SA Group, GEICO, Liberty Mutual Insurance, Bajaj Allianz, Allstate Insurance Company, The Progressive Corporation, Insurance & Mobility Solutions (IMS), American International Group Inc., Insurethebox, Verisk Analytics Inc.
The Third-Party Liability Coverage category dominated the market in 2022.
The new vehicle had the largest share in the global market.
Team Lead - Research With a technical background as bachelor's in mechanical engineering, with mba in operations management , swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the automotive/a&d domain. swapnil has worked on major projects in verticals such as aerospace & defense, automotive and many other domain projects. he has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.
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