As per MRFR analysis, the Canada Motorcycle Insurance Market Size was estimated at 7.04 (USD Billion) in 2023. The Canada Motorcycle Insurance Market is expected to grow from 7.5 (USD Billion) in 2024 to 11.5 (USD Billion) by 2035. The Canada Motorcycle Insurance Market CAGR (growth rate) is expected to be around 3.962% during the forecast period (2025 - 2035).
Numerous factors, most notably the rising number of motorbike registrations nationwide, are influencing the major trends that the Canadian motorcycle insurance market is currently experiencing. More Canadians are purchasing motorcycles as a result of provincial laws that encourage and support two-wheeled vehicles for both financial and environmental reasons.
The demand for motorbike insurance plans is directly impacted by this increase in ownership. Additionally, insurance companies are broadening their coverage options to accommodate both local riders and visitors as a result of the growing popularity of motorcycle tourism, which is being driven by Canada's varied landscapes and picturesque routes.
Increased awareness of motorcycle safety and the value of comprehensive coverage are two major market factors. More and more riders are looking for plans that provide better liability, theft, and accident protection. In order to satisfy these changing demands, insurance companies are modifying their offerings by adding services like customizable coverage options and roadside help.
Additionally, motorcyclists are finding it simpler to keep an eye on their safety because to technological improvements like telematics-based insurance policies, which lower premiums based on riding behavior. As more Canadians place a higher priority on environmentally friendly transportation, there are opportunities to be found in the expanding electric motorcycle market.
Insurance companies can take advantage of this trend by creating products specifically for owners of electric motorcycles. Additionally, the growth of online insurance platforms presents enormous market development possibilities, enabling insurers to use direct-to-consumer sales tactics to reach a larger client base.
Because online policy management is more convenient for consumers, there is a persistent trend toward an emphasis on digital transformation. All things considered, the Canadian motorcycle insurance market is expected to expand due to shifting customer tastes and an industry dedication to innovation.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Canada Motorcycle Insurance Market is seeing growth driven by an increasing number of motorcyclists across the country. According to Statistics Canada, there has been a steady growth in the number of registered motorcycles, with approximately 10% increase in motorcycle registrations over the past decade.
In 2022, there were over 750,000 registered motorcycles in Canada. This trend is expected to continue as younger generations show a growing interest in motorcycle riding as a form of recreation and transportation.
Organizations such as the Canadian Motorcycle Association actively promote motorcycle riding, further leading to an increase in the riding population. This growing demographic creates a larger customer base for motorcycle insurance products, consequently driving market growth.
The Canada Motorcycle Insurance Market is influenced by evolving legislation and safety regulations that require more comprehensive insurance coverage. Provinces like Ontario and British Columbia have introduced enhanced safety measures that mandate minimum insurance requirements for motorcyclists.
For instance, the introduction of the 'Mandatory Insurance Act' in several provinces has been aimed at reducing motorcycle accidents and ensuring that riders maintain adequate coverage.
The Insurance Bureau of Canada reported that provinces with stricter regulations have experienced a 15% decline in motorcycle fatalities over the past 5 years. This regulatory landscape stimulates demand for motorcycle insurance policies that comply with new safety standards.
The Canada Motorcycle Insurance Market is experiencing a shift towards eco-friendly motorcycle options, which is driving interest and demand. The Government of Canada has set a target to reduce greenhouse gas emissions significantly, and this has led to increased sales of electric motorcycles, which accounted for a 30% growth in sales in 2022 alone.
As more riders turn towards environmentally friendly models, insurance providers are adapting their offerings to capture this burgeoning market. Organizations such as the Electric Mobility Canada have been promoting electric vehicles and, as a result, insurance companies are likely to offer specialized policies for electric motorcycles, thereby expanding the overall motorcycle insurance market.
The Canada Motorcycle Insurance Market is benefiting from advancements in telemetry and the rise of usage-based insurance products. With the widespread deployment of telematics technology, insurers can gather data on motorcycle usage patterns, which helps in assessing risk more accurately.
According to the Insurance Bureau of Canada, about 25% of motorcyclists in Canada are already utilizing telematics-based insurance, which rewards safer driving practices with lower premiums.
This not only encourages safer riding behavior but also opens up more tailored insurance options, making policies more attractive for consumers. As technology continues to improve, it is expected that a larger segment of the market will shift towards these innovative insurance solutions.
The Canada Motorcycle Insurance Market demonstrates a well-defined structure concentrated on various types of coverage, which is critical for catering to the diverse needs of motorcycle owners across the country.
The primary components under the Type segment include Liability Insurance, Comprehensive and Collision Insurance, Medical Payments Insurance, Theft Insurance, and others, each of which serves unique purposes.
Liability Insurance is paramount as it is legally mandated in Canada, ensuring protection against damages or injuries caused to other parties in case of an accident. This type of coverage serves as a cornerstone for responsible riders and significantly contributes to overall traffic safety.
Comprehensive and Collision Insurance plays a vital role in protecting motorcycle owners from both collision-related repairs and non-collision incidents like theft or vandalism. The rising number of motorcycle thefts has heightened the importance of Theft Insurance, making it a significant segment within the market.
In Canada, theft rates for motorcycles often exceed that of other vehicles, reflecting the need for riders to include this coverage as part of their insurance plan. Medical Payments Insurance further enhances the safety net for riders by covering medical expenses resulting from motorcycle accidents.
Given the physically demanding nature of riding, this type of insurance alleviates some of the financial burdens that could arise, thus ensuring that riders are not left vulnerable in the event of an unforeseen incident.
In recent years, there has been a notable trend towards customizing insurance policies, making the "Others" category increasingly relevant. This segment encompasses a mix of alternative coverage options, catering to specific rider needs and preferences, reflecting the dynamic nature of the motorcycle community in Canada.
The demand for specialized products suggests an ongoing shift towards personalized insurance solutions, driven by consumer awareness and the desire for comprehensive protection tailored to individual lifestyles.
As the Canada Motorcycle Insurance Market evolves, awareness of the importance of each type of coverage is crucial for addressing the varying risks and responsibilities that motorcycle riders face across the nation. Monitoring these segments reveals the underlying trends and potential areas for growth due to their distinct characteristics and market dynamics.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Application segment of the Canada Motorcycle Insurance Market plays a critical role in addressing the unique insurance needs of riders, with a focus on Personal and Commercial applications.
Personal motorcycle insurance remains a significant aspect as it caters to individual riders who require coverage for their vehicles against accidents, theft, and damages, reflecting the growing enthusiasm for motorcycle riding in Canada. The increase in recreational riding during the summer months drives this demand, as many Canadians seek the freedom of the open road.
On the other hand, Commercial motorcycle insurance is essential for businesses that utilize motorcycles for delivery or transportation services, highlighting the need for specialized coverage to mitigate risks associated with business operations.
The importance of this segment is underscored by the diverse nature of motorcycle use across Canada, where urban centers and rural areas alike exhibit a robust motorcycle culture.
As such, understanding the Canada Motorcycle Insurance Market segmentation is vital for insurers to develop tailored products that meet the specific needs of personal riders and commercial users alike, providing a solid foundation for sustainable market growth.
Additionally, with changing regulations and increasing awareness about motorcycle safety, there are both challenges and opportunities that insurers must navigate to remain competitive in this evolving market landscape.
The Canada Motorcycle Insurance Market is characterized by a diverse and competitive landscape, where numerous companies strive to capture market share through innovative products and tailored customer service.
As the popularity of motorcycles continues to rise, particularly among younger demographics and urban dwellers seeking alternative modes of transportation, the demand for specialized motorcycle insurance has also increased.
This environment fosters intense competition, encouraging providers to differentiate themselves by offering flexible policies, competitive pricing, and value-added services. With an emphasis on digital transformation, companies are increasingly leveraging technology to streamline processes and enhance customer engagement, which further intensifies the competitive dynamics within the market.
Echelon Insurance stands out in the Canada Motorcycle Insurance Market with a strong focus on providing tailored insurance solutions that cater specifically to the needs of motorcyclists. The company is known for its expertise in underwriting, allowing it to assess risks effectively and offer competitive rates that appeal to a diverse clientele.
Echelon Insurance emphasizes exceptional customer support and claims handling services, which have helped in building a loyal customer base. The company operates within a wide geographical footprint across Canada, ensuring accessibility for customers seeking motorcycle insurance.
Its commitment to understanding the unique needs of motorcycle riders equips Echelon Insurance with a distinct advantage in crafting policies that resonate well with its target market.
CUMIS has established itself as a formidable player in the Canada Motorcycle Insurance Market by offering a comprehensive range of insurance products tailored for motorcycle owners. The company benefits from a robust network of partnerships, allowing it to extend its reach and enhance its market presence within the country.
CUMIS excels in creating customer-centric products, including customizable coverage options that meet the varied needs of riders. Its strong backing from cooperative organizations in Canada positions CUMIS favorably, enabling it to provide competitive pricing and flexible terms. The company has also engaged in strategic mergers and acquisitions to bolster its product offerings and expand its market influence.
This strategic growth approach is complemented by CUMIS's focus on risk management and customer satisfaction, solidifying its reputation within the motorcycle insurance industry in Canada.
In recent months, the Canada Motorcycle Insurance Market has shown significant activity with various companies adapting to changing regulations and customer needs.
Companies such as Intact Financial Corporation and Desjardins Insurance have been emphasizing increased digital services to enhance customer experience, especially in the wake of the growing preference for online interactions following the pandemic.
In September 2023, Echelon Insurance launched a new product designed to offer tailored coverage for electric motorcycles, addressing the emerging demand for sustainable vehicles.
Additionally, in October 2023, RSA Canada announced its acquisition of a regional agency to expand its market reach in Ontario, reflecting a trend towards consolidation among major players. Travelers Canada has also been increasing its market presence through strategic partnerships with local dealerships, thereby enhancing its distribution channels.
Economic fluctuations have led to varying growth rates across different insurers, with Aviva Canada reporting an increase in policy sales due to heightened consumer awareness of motorcycle safety and insurance need. The market continues to evolve with a focus on technology integration, risk management, and adapting to the needs of modernization in motorcycle insurance offerings.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 7.04 (USD Billion) |
| MARKET SIZE 2024 | 7.5 (USD Billion) |
| MARKET SIZE 2035 | 11.5 (USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 3.962% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Echelon Insurance, CUMIS, Hub International, Intact Financial Corporation, RSA Canada, Travelers Canada, Federated Insurance, The Cooperators, Desjardins Insurance, Allstate Insurance Company of Canada, Aviva Canada, Wawanesa Mutual Insurance, Economical Insurance, Amica Mutual Insurance |
| SEGMENTS COVERED | Type, Application |
| KEY MARKET OPPORTUNITIES | Rising motorcycle ownership rates, Increasing preference for customized coverage, Growth in recreational riding trends, Enhanced digital insurance services, Focus on younger demographics and urban riders |
| KEY MARKET DYNAMICS | Rising demand for motorcycle sales, Increasing awareness of safety measures, Regulatory changes in insurance policies, Competitive pricing among insurers, Growth of online insurance platforms |
| COUNTRIES COVERED | Canada |
Frequently Asked Questions (FAQ) :
In 2024, the Canada Motorcycle Insurance Market is expected to be valued at 7.5 USD Billion.
By 2035, the Canada Motorcycle Insurance Market is projected to reach 11.5 USD Billion.
The Canada Motorcycle Insurance Market is expected to grow at a CAGR of 3.962 percent from 2025 to 2035.
Liability Insurance is anticipated to hold the largest market share, valued at 3.0 USD Billion in 2024.
Comprehensive and Collision Insurance is expected to be valued at 2.0 USD Billion in 2024.
Major players include Intact Financial Corporation, RSA Canada, Echelon Insurance, and Allstate Insurance Company of Canada.
The Theft Insurance segment is expected to grow from 0.5 USD Billion in 2024 to 0.8 USD Billion in 2035.
Challenges may include regulatory changes and competition among key insurance providers.
Emerging trends include an increase in demand for customized insurance policies and digital insurance platforms.
Medical Payments Insurance is projected to be valued at 1.6 USD Billion in 2035.
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