Automotive Insurance Market Research Report- Global Forecast till 2027

Automotive Insurance Market Research Report: Information by Vehicle Type (Passenger Cars, LCV, and HCV), by Insurance Type (Third-Party, Comprehensive, Third-Party Theft and Fire, and Others), and by Region (North America, Europe, Asia-Pacific, and the Rest of the World) - Forecast till 2027

ID: MRFR/AM/6323-HCR | February 2021 | Region: Global | 100 pages

Automotive Insurance Market Overview


Automobile insurance can be defined as the contract that exists between vehicle owners and insurance companies. Such an insurance instrument aims to safeguard the vehicle owners against financial loss if there is an accident or other contingency. When customers purchase automotive insurance, they agree to pay a premium amount. The insurance company takes the responsibility to pay for losses outlined in the specific insurance policy. The rise in cars on the streets has increased the need for automotive insurance and influenced the market size at the global level.


The automotive insurance market is considered to be one of the most promising global industries. During the forecasted period, the global market is expected to deliver strong performance. Some of the major factors that could support the market growth include the high awareness among people regarding different types of auto insurance and the adoption of digital technologies in diverse insurance solutions. Since automotive insurance covers diverse elements such as coverage and loss of property, medical-related aspects, and liability, the demand in the market is forecasted to surge further. According to the National Association of Insurance Commissioners (NAIC), 78 % of the insured drivers buy comprehensive and liability insurance. 


The integrated market report gives an in-depth insight into diverse variables that shape the industrial landscape at the global level. The chief drivers, opportunities, challenges, and restraints that influence the market growth have been analyzed thoroughly. Similarly, the major market trends that can impact the market growth during the forecasted period have been investigated.


Covid 19 analysis


The Covid 19 pandemic has exerted a considerable influence on the automotive insurance market at the global level. Due to the infectious outbreak, people have opted to travel by personal cars and vehicles instead of public transportation. Such a trend has not only led to a surge in the sale of cars but has also increased the demand for automotive insurance solutions. These insurance options act as a safety net for people who drive their vehicles for commuting purposes. Thus, the pandemic has increased the overall demand for automotive insurance products and increased the market size.


The competitive landscape in the industry


The competitive intensity in the global market is very high as several businesses function in it. Some of the major organizations that increase the competitiveness of the industry at the global level include: 



  • Allstate Insurance Company

  • RAC Motoring Services

  • Progressive Casualty Insurance Company

  • Zhongan Insurance

  • CPIC

  • ABIC Inc. 

  • Zurich Insurance Group

  • RSA Insurance Group

  • Clements Worldwide


For sustainably performing in the competitive market landscape, the key business players have been adopting new strategic approaches to increase their automotive insurance market share. Several businesses have shifted towards technological advancement and innovation to deliver better automotive insurance solutions to their customers. Automobile insurance firms have been working with software providers to deliver big data-based insurance solutions that satisfy their exact needs and wants. These strategic changes could play an influential role and impact the market growth in the future.


Recent market developments



  • RAC Motoring Services, a major market player, recently launched pioneering ‘no ties’ pay-by-mile car insurance so that drivers would be charged only for the miles that they drive. 

  • Organizations in the automotive insurance industry have been adopting innovative technologies such as Artificial Intelligence (AI) to transform their auto insurance solutions.


Chief factors existing in the market



  • Market drivers 


A large number of variables exist at the global automotive insurance industry level that supports solid market performance. Some of the main market drivers are the enhanced awareness and knowledge of automotive insurance among end-users and car owners, the adoption of new technologies in auto insurance products, and the presence of third-party insurance solution providers. These elements are likely to serve as the major market trends that would accelerate the market growth during the forecasted period.



  • Market challenges


Numerous challenges exist in the global automotive insurance industry setting that diminishes its attractiveness and growth potential. One of the chief challenges relates to the dynamic nature of the industry. The market is undergoing transformational change due to the integration of autonomous technology and changing regulatory landscape. It has increased unpredictability for the key players that function in the market and influence the automotive insurance market sizeat the global level.



  • Opportunities 


Several opportunities arise before business entities that perform in the global market landscape. Some of the main opportunities that can be exploited to capture a higher market shareinclude the surge in on-demand transportation and the shifting of liability to producers, the introduction and integration of autonomous solutions that have boosted automobile safety. There also exist other opportunities in the market that can be exploited, such as improved asset utilization, change in ownership models of vehicles, and better automobile safety. 



  • Restraining factors 


In the vast automotive insurance market, several restraints exist that restrict the ability of business entities to capitalize on the market opportunities. One of the main restraints is the lack of financial resources to integrate the latest technologies into auto insurance solutions. Another restraint is the inability of the market players to adapt to the evolving market environment. At present, the key players have been working on their strategic approaches to effectively overcome such hurdles that exist in the global automotive insurance industry.


Cumulative evaluation of the market


The global market report gives an in-depth view of the industry and its growth potential during the forecasted period. Several factors have been identified that could accelerate the market growth, such as the adoption of new technologies and the rise in awareness of new kinds of auto insurance products. Important market trends have been identified and examined in the report that can potentially influence market performance in the future. 


Overview of the main market segments



  • By Vehicle Type 


The global market can be categorized into passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles (HCV) based on the vehicle type. The chief driver that could impact the performance of each of the industry segments includes the rise in awareness of insurance products. They could significantly contribute to the market growth during the forecasted period.



  • By Insurance Type


Based on the type of insurance, the global market can be segregated into third-partycomprehensive, third-party theft and Fire, and others. The availability of such diverse insurance options has increased the overall demand at the global market level. During the forecasted period, these market segments would play an integral role and impact the growth of the automotive insurance market. Some of the chief auto insurance offerings that have gained high popularity in the prevailing market setting include collision insurance, comprehensive insurance, and gap insurance.


Regional evaluation 


The global market can be segmented into varying geographical segments such as the Americas, Europe, the Asia Pacific, the Middle East, Africa, and the rest of the world. The Asia Pacific geographical segment will likely dominate the global market and influence the automotive insurance market growth during the forecasted period. Some of the main reasons for the solid performance of the specific regional segment include a considerable increase in the sales of automobiles in Asian nations such as India, China, numerous insurance providers, and third-party insurance providers in the region. It is also expected that the Middle East and Africa, and South America would demonstrate strong performance during the forecasted period. The increase in the number of automobiles could act as a major factor that could strengthen the contribution of the market segment at the global level.  


Report Overview


The detailed report on the automotive insurance market sheds light on several factors in the global market setting and influences its performance. Various factors have accelerated the demand in the market, such as high awareness of auto insurance and a wider range of insurance providers. One of the major market trends that have been captured in the report revolves around the adoption of the latest digital technologies such as AI to offer improved and differentiated auto insurance solutions. 


Key Industrial segments


By Vehicle Type 



  • Passenger cars

  • LCV

  • HCV


By Insurance Type



  • Third-party

  • Comprehensive

  • Third-party theft and Fire 

  • Others



Report Scope:
Report Attribute/Metric Details
  Market Size   2027: Significant Value
  CAGR   Substantial CAGR (2020-2027)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Vehicle Type, Insurance Type, Region
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Allstate Insurance Company (US), RAC Motoring Services (UK), Progressive Casualty Insurance Company (US), Clements Worldwide (US), GEICO (US), NFU Mutual (UK), Zhongan Insurance (China), ABIC Inc. (China), CPIC (China), State Farm Mutual Automobile Insurance Company (US), RSA Insurance Group plc (UK), and Zurich Insurance Group (Switzerland).
  Key Market Opportunities

  • Rise in on-demand transportation and the shifting of liability to manufacturer
  • Automotive industry is undoubtedly undergoing significant changes that will help increase asset utilization, change vehicle ownership models, and improve vehicle safety
  • Introduction of autonomous technology has made cars increasingly safer, which is expected to reduce the vehicle accidents
  •   Key Market Drivers   Mounting awareness among end users, introduction of innovative technologies and products, and the availability of third-party insurance providers


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    Frequently Asked Questions (FAQ) :


    The Asia Pacific geographical segment is likely to dominate the global automotive insurance market during the forecasted period due to favorable market conditions such as the increase in the sale of automobiles and the presence of several insurance providers.

    High awareness of automobile insurance among end-users and the integration of innovative technologies act as the key market drivers that influence the performance of the automotive insurance market.

    Allstate Insurance Company, RAC Motoring Services, and Progressive Casualty Insurance Company are the major market players that have accelerated the automotive insurance market growth.