Vehicle Insurance Market (By Coverage: Third Party Liability, Comprehensive; By Application: Personal Vehicle, Commercial Vehicle; By Distribution Channel: Insurance Agents/Brokers, Direct Response, Banks, Others; By Vehicle Type: New Vehicles, Used Vehicles) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022 – 2030


The global vehicle insurance market size was estimated at US$ 790 billion in 2021 and it is expected to hit US$ 1500 billion by 2030 with a registered CAGR of 7.38% from 2022 to 2030.

Vehicle Insurance Market Size 2021 to 2030

Growth Factors

The vehicle insurance market is growing at a steady rate owing to the rising affordability of the consumers, growing demand for personal mobility solutions, rising disposable income, improved standards of living, and rise of the middle class are some of the major factors that are boosting the demand for the automotive vehicles across the globe. Furthermore, the rising economic activities across the developing and developed nations are boosting the demand for the commercial vehicles. The rapid growth of the e-commerce industry across the globe has significantly boosted the demand for the transportation solutions that has significantly driven the demand for the commercial vehicles across the globe. The rising adoption of personal and commercial vehicles across the globe is expected to boost the demand for the vehicle insurance during the forecast period. In several countries, buying a vehicle insurance policy is a regulatory mandate. Therefore, the regulatory guidelines regarding the purchase of vehicles play a major role in the growth of the vehicle insurance market. Moreover, the rising cases of road traffic accidents across the globe have led to the adoption of vehicle insurance. The vehicle insurances provide financial protection the vehicle owners against physical damages due to accidents and auto theft.

The rapidly growing popularity of the ride sharing is boosting the insurance premium growth significantly. A rapid rise in the online cab services across the globe has significantly fostered the sales of commercial vehicles. Furthermore, the growing popularity and rising demand for the electric vehicles across the globe is expected to boost the growth of the vehicle insurance market. The adoption of the latest technologies such as artificial intelligence, internet of things, and big data analytics is creating a digital ecosystem for the vehicle insurance industry. The rapid emergence of the online insurance sellers and aggregators are positively boosting the sales of various types of vehicle insurances.

Report Scope of the Vehicle Insurance Market

Report Coverage Details
Market Size by 2030 USD 1500 Billion
Growth Rate from 2022 to 2030

CAGR of 7.38%

Largest Market North America
Fastest Growing Region Asia Pacific 
Base Year 2021
Forecast Period 2022 to 2030
Segments Covered Coverage, Application, Distribution Channel, Vehicle Type, Geography
Companies Mentioned PEOPLE’S INSURANCE COMPANY OF CHINA, ALLSTATE INSURANCE COMPANY, CHINA PACIFIC INSURANCE CO., ALLIANZ, STATE FARM MUTUAL, TOKIO MARINE GROUP, AUTOMOBILE INSURANCE, GEICO, PING AN INSURANCE (GROUP) COMPANY OF CHINA, LTD., ADMIRAL GROUP PLC, BERKSHIRE HATHAWAY INC.

 

Coverage Insights

Based on the coverage, the third party liability coverage segment dominated the global vehicle insurance market in 2021. The major benefits of this coverage type is that it compensates any damage caused to the third party like disability, death, or any loss to his/her property. The legal and financial care is taken care in case of third party liability coverage. The probability of the vehicle accidents and damage to the third party is a major reason behind the increased preference for the third party liability coverage insurance.

Vehicle Insurance Market Share, By Coverage, 2021 (%)

On the other hand, the comprehensive coverage is anticipated to be the fastest-growing segment during the forecast period. The comprehensive policy not only covers the third party damages but also the damages caused to the customers’ vehicles. This is a major benefit of the comprehensive insurance over the third party insurance coverage, which is propelling the demand for the comprehensive coverage across the globe.

Application Insights

Based on the application, the personal vehicle segment dominated the global vehicle insurance market in 2021. The huge number of personal vehicles across the globe has led to the increased demand for the vehicle insurance. The rising affordability owing to the easy financing and EMI options is further fueling the demand for the personal vehicles and consequently the demand for the vehicle insurance is also growing. The rapidly growing popularity of the electric vehicles is expected have a significant impact on the growth of the global vehicle insurance market in the forthcoming years.

Vehicle Insurance Market Share, By Application, 2021 (%)

The commercial segment is anticipated to witness the highest growth rate during the forecast period. The growing adoption of car rental services and online cab services, along with the growing adoption of electric public transport vehicles is boosting the growth of the commercial vehicles segment. Furthermore, the rising economic development and economic growth owing to rapid industrialization and growing number of economic activities in the developing and underdeveloped regions is significantly boosting the demand for the commercial vehicles and hence it is expected to boost the growth of the vehicle insurance market during the forecast period.

Region Insights

North America dominated the global vehicle insurance market in 2021. The presence of leading insurance providers, increased consumer awareness regarding the benefits of vehicle insurance, high disposable income, higher demand for vehicles, and rising affordability of the middle class is boosting the growth of the North America vehicle insurance market. The rising consumer awareness regarding the benefits of electric vehicles is anticipated to boost the demand for the EVs in the upcoming years and hence the demand for the vehicle insurance is expected to rise significantly in North America. The penetration of insurance sector is significantly high in the developed market of US and Canada. The rising adoption of the digital platforms for buying and renewing vehicle insurance policies is playing a significant role in the growth of the North America vehicle insurance market. Furthermore, the rising technological advancements and growing adoption of the digital technologies among the insurance providers is expected to have a positive effect on the growth of the vehicle insurance market during the forecast period.

Asia Pacific is expected to be the fastest-growing market during the forecast period. The rising demand for the vehicles owing to rising economic activities, increasing government investments in the infrastructural development, and rapid urbanization. The presence of huge population and rising middle class is fueling the demand for the vehicles in the region. The mandatory government regulations regarding the adoption of vehicle insurance in nation like India is exponentially contributing to the growth of the Asia Pacific vehicle insurance market. The rapidly rising demand for the alternative fuel vehicles in the developing nation like China is boosting the vehicle insurance market growth. China is the largest producer and consumer of the electric vehicles in the globe.

Key Market Developments

  • In August 2021, AXA S.A introduced itslatest digital claims solution,STeP, to simplify thevehicle insurance process.
  • In May 2021, GEICO partnered with Tractable, an AI technology companyto accelerate its vehicle claim and repair process. The AI are used to assess vehicle damage on the basis of photo, like a human appraiser.

The various developmental strategies such as new product launches, partnerships, acquisitions, and mergers are being adopted by the key market players to strengthen their position and gain market share. The major players are constantly looking to exploit the prevailing market opportunities and gain a competitive over others. These developmental strategies plays a crucial role in the growth of the vehicle insurance market.

Some of the prominent players in the global vehicle insurance market include:

  • PEOPLE’S INSURANCE COMPANY OF CHINA
  • ALLSTATE INSURANCE COMPANY
  • CHINA PACIFIC INSURANCE CO.
  • ALLIANZ
  • STATE FARM MUTUAL
  • TOKIO MARINE GROUP
  • AUTOMOBILE INSURANCE
  • GEICO
  • PING AN INSURANCE (GROUP) COMPANY OF CHINA, LTD.
  • ADMIRAL GROUP PLC
  • BERKSHIRE HATHAWAY INC.

Segments Covered in the Report

(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)

By Coverage

  • Third Party Liability
  • Comprehensive

By Application

  • Personal Vehicle
  • Commercial Vehicle

By Distribution Channel

  • Insurance Agents/Brokers
  • Direct Response
  • Banks
  • Others

By Vehicle Type

  • New Vehicles
  • Used Vehicles

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions

What is the current size of vehicle insurance market?
The global vehicle insurance market size was reached at US$ 790 billion in 2021 and is expected to rake around US$ 1500 billion by 2030.
What will be the CAGR of global vehicle insurance market?
The global vehicle insurance market is expected to grow at a CAGR of 7.38% from 2022 to 2030.
Who are the major players operating in the vehicle insurance market?
The major players operating in the vehicle insurance market are PEOPLE’S INSURANCE COMPANY OF CHINA, ALLSTATE INSURANCE COMPANY, CHINA PACIFIC INSURANCE CO., ALLIANZ, STATE FARM MUTUAL, TOKIO MARINE GROUP, AUTOMOBILE INSURANCE, GEICO, PING AN INSURANCE (GROUP) COMPANY OF CHINA, LTD., ADMIRAL GROUP PLC, and BERKSHIRE HATHAWAY INC.
Which are the driving factors of the vehicle insurance market?
The rising demand for the vehicles for transportation across the globe is expected to boost the growth of the global vehicle insurance market.
Which region will lead the global vehicle insurance market?
North America region will lead the global vehicle insurance market in the next ten years.
  • Report Code:1757
  • Category:ICT
  • No. of Pages:150+
  • Format:PDF/PPT/Excel
  • Status:Published

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