The Global Motor Insurance Market is Segmented by Policy Type (Third-Party Liability Insurance, Comprehensive Coverage, and More), Distribution Channel (Insurance Agents/Brokers, Direct Response/Digital, Bancassurance, and More), Vehicle Type (Passenger Cars, Two-Wheelers, and More), Vehicle Age (New Vehicles (< 5 Years) and Used Vehicles (≥ 5 Years)), and Region. The Market Forecasts are Provided in Value (USD).

Vehicle Insurance Market size is growing with a CAGR of 8.4% in the prediction period and it crosses USD 1,896.22 bn by 2032 from USD 1,077.47 Bn in 2025.

Snapshot img

Motor Vehicle Insurance Market Size 2024-2028

The motor vehicle insurance market size is forecast to increase by USD 545.9 billion, at a CAGR of 10.44% between 2023 and 2028.

The market is experiencing significant shifts driven by increasing government regulations on mandatory insurance coverage in developing countries and the digitalization of the industry. These factors are shaping the market's strategic landscape, presenting both opportunities and challenges for insurance players. Government regulations in developing countries are pushing for mandatory insurance coverage, expanding the potential customer base for motor vehicle insurers. This trend is particularly noticeable in Asia Pacific and Latin America, where economic growth and urbanization are leading to increased car ownership. However, this regulatory environment also tightens the competitive landscape, as more players enter the market and compliance becomes a priority.
Simultaneously, the digitalization of the motor vehicle insurance industry is transforming the way insurers engage with customers and manage risk. Digital platforms enable real-time underwriting, claims processing, and customer service, enhancing the overall customer experience. However, this digital shift also brings challenges, such as data security concerns and the need for robust IT infrastructure. To capitalize on opportunities and navigate challenges effectively, insurers must stay abreast of regulatory changes and invest in digital capabilities.

What will be the Size of the Motor Vehicle Insurance Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
Request Free Sample

The market continues to evolve, shaped by dynamic market forces and advancements in technology. AI-powered claims processing streamlines underwriting and settlement negotiations, while digital insurance platforms offer convenience and personalized pricing. Data analytics and credit scoring inform risk assessment and customer segmentation, shaping insurance regulations and product offerings. Collision coverage and liability limits are subject to ongoing adjustments, influenced by factors such as driving record and insurable interest. Third-party administrators (TPAs) and legal counsel facilitate dispute resolution, ensuring regulatory compliance and comparative negligence assessments. Fraud detection and independent verification are essential components of claims processing, with advanced predictive modeling and accident reconstruction techniques aiding in claims investigation and policy administration.

How is this Motor Vehicle Insurance Industry segmented?

The motor vehicle insurance industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Personal
  Commercial


Distribution Channel

  Brokers
  Direct
  Banks
  Others


Vehicle Age

  New Vehicles
  Old Vehicles
  New Vehicles
  Old Vehicles


Coverage Type

  Liability Insurance
  Collision Insurance
  Comprehensive Insurance


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    Italy
    Spain
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Application Insights

The personal segment is estimated to witness significant growth during the forecast period.

Motor vehicle insurance is a crucial financial protection for vehicle owners and drivers. The insurance policy, which is a compulsory requirement under the Motor Policy, offers coverage for both comprehensive and third-party liability packages. Personal insurance, an optional add-on cover, safeguards the owner or driver against accidental injuries. Insurance agents and brokers play a significant role in advising clients on coverage limits and policy options. Actuarial modeling and predictive analytics are used to assess risk and determine personalized pricing. Liability coverage, including property damage and bodily injury, is a key component of motor vehicle insurance. Fraud detection and independent verification are essential for dispute resolution and maintaining regulatory compliance.

Digital insurance platforms and ai-powered claims processing streamline the claims management process. Data analytics and customer segmentation help insurers tailor policies to individual needs. Usage-based insurance and mobile apps provide real-time data for risk assessment and customer retention. Insurance regulations mandate coverage for medical payments and accident reconstruction, as well as policy administration and claims processing. Policy cancellation, clai

The Global Car Insurance Market is Segmented by Policy Coverage (Third Party, Comprehensive, Collision and More), Vehicle Type (Passenger Cars, Light Commercial Vehicles and More), Distribution Channel (Direct To Customer, Intermediated, and Embedded), and Region (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Across Australia, the car insurance landscape is entering a new era of digital competition and data-driven risk management. Recent results show premium growth under pressure from higher claims costs, even as demand holds steady, with online platforms pulling consumer attention towards faster, more transparent service. Telematics-based pricing and app-driven claims are becoming the norm, reshaping the customer experience and forcing traditional players to lift their tech game. The car insurance market has also faced more frequent natural disasters and tighter regulatory scrutiny, pushing insurers to bolster capital resilience and risk analytics. A clear signal of the shift came in late 2024, when Suncorp announced a $560.0 million digital upgrade to embed AI and power its next chapter of expansion. Rising costs and expanding exposure have defined the market’s performance. Comprehensive premiums rose about 42% since 2019, to an average of roughly $1,052 in 2024, while claims costs climbed about 42% from mid-2019 to mid-2024. Higher repair prices, more expensive parts and labour and surging vehicle values fed a tighter premium cycle and a growing number of registered vehicles widened the insured base. The rise of online aggregators and digital competitors intensified price pressure, squeezing margins and pushing firms to differentiate with tailored coverage and quicker, more transparent claims handling. Nonetheless, the industry benefited from a larger pool of customers and the accelerating use of data to price risk more accurately. Overall, industry revenue is expected to climb at an annualised 2.7% over the five years through 2025-26 to reach $32.7 billion, including an upswing of 0.8% in the current year. Looking ahead, digital disruptions and climate risks are set to shape the industry’s trajectory. Telematics, AI underwriting and insurtech entrants will keep driving efficiency and personalised pricing, while regulators push for stronger climate risk disclosures and resilience planning. Product innovation – usage-based plans, EV-focused coverage and tailored bundles – will help insurers attract and retain customers in a crowded market. Premiums may stabilise as inflation eases, but claims costs tied to extreme weather will keep pressure on pricing. With competition unlikely to abate, firms will pursue scale, partnerships and data-driven cross-selling to defend market share and some consolidation is likely as players invest in digital capabilities to stay competitive. Overall, industry revenue is forecast to expand at an annualised 1.6% through the end of 2030-31 to total $35.3 billion.

The statistic presents the value of gross premiums written by motor vehicle insurance companies in the United Kingdom from 2009 to 2013 and a forecast thereof until 2025. The value of motor vehicle insurance sector in the United Kingdom amounted to approximately 20.93 billion U.S. dollars in 2013 and it was projected to grow to approximately 42.54 billion U.S. dollars in 2025.

From 2017 to 2023, the global motor vehicle insurance market grew by ** percent. It is forecasted to grow by only about ** percent between 2023 and 2028, reaching nearly a total gross written premium of **** trillion U.S. dollars.

The United States car insurance market, a substantial sector valued at approximately $194.15 billion in 2025, is projected to experience steady growth, fueled by a Compound Annual Growth Rate (CAGR) of 4.21% from 2025 to 2033. This growth is driven by several key factors. The increasing number of vehicles on the road, coupled with rising vehicle prices and repair costs, necessitates higher insurance premiums. Furthermore, stricter regulations regarding minimum insurance coverage and a growing awareness of the risks associated with uninsured or underinsured motorists are contributing to market expansion. Technological advancements, such as telematics and usage-based insurance, are also influencing market dynamics, offering personalized premiums based on driving behavior and promoting safer driving practices. The market is segmented by coverage type (third-party liability, collision/comprehensive, and other optional coverages), vehicle type (personal and commercial), and distribution channel (agents, banks, brokers, and others). Competition within the sector is fierce, with major players like State Farm, Berkshire Hathaway, Progressive, Allstate, and USAA vying for market share through innovative products and targeted marketing campaigns. The market's robust growth is expected to continue, driven by sustained economic activity and the ongoing need for reliable vehicle insurance protection. The regional distribution of the US car insurance market mirrors the population density and economic activity across the nation. While precise regional breakdowns are not provided, it can be reasonably inferred that states with larger populations and higher vehicle ownership rates, such as California, Texas, and Florida, constitute significant portions of the overall market. The market's segmentation by distribution channels reflects the evolving preferences of consumers and the strategies employed by insurance providers. The rise of online platforms and digital insurance brokers is gradually challenging the dominance of traditional agents, leading to greater competition and potentially lower prices for consumers. However, the personal interaction offered by agents remains a valuable service for many policyholders. Future growth will depend on factors such as economic fluctuations, evolving regulatory landscapes, and technological innovation within the insurance industry. Understanding these dynamics is crucial for both insurers and consumers navigating this significant and dynamic market. Recent developments include: August 2023: AXA S.A. introduced its latest digital claims solution, STeP, which simplifies the car insurance process., May 2022: GEICO partnered with Tractable, an AI technology company, to accelerate its car claim and repair process. The AI is used to assess car damage.. Key drivers for this market are: Rising Number of Accidents Drives The Market, An increase in Road Traffic Accidents Drives The Market. Potential restraints include: Rising Number of Accidents Drives The Market, An increase in Road Traffic Accidents Drives The Market. Notable trends are: Rise In Number Of Traffic Accidents.

Motor Vehicle Insurance revenue is forecast to rise at a compound annual rate of 3.3% over the five years through 2024-25 to £26.9 billion, including an estimated growth of 19.7% in 2024-25. Often, insurers invest the premiums earned from insurance activities to generate additional income. Since the Solvency II EU directive came into force on January 1 2016, profitability has been constrained as the level of regulation regarding investment picked up. This was worsened by changes to the Ogden rate in March 2017, which lifted the payout due to a claimant compared to the same settlement at the old rate. Rising tax rates in recent years has also resulted in less fruitful operating conditions. The COVID-19 outbreak dampened demand as consumers and businesses reined in vehicle usage amid lockdown restrictions. Yet, this also reduced the number of claims and payouts processed by insurers. Since the COVID-19 outbreak, insurers have had to contend with high claims costs as the inflationary environment ratcheted up the price of key components used to repair cars, hurting profitability. This resulted in premiums picking up in 2023-24 as insurers sought to offset elevated claims costs, driving revenue growth and a return to profitability for many insurers. Motor premiums are set to remain elevated in 2024-25 but begin to drop as inflationary pressures subside and claims volumes slump, with ABI reporting a reduction for the first time in two years in June 2024. Motor Vehicle Insurance revenue is forecast to climb at a compound annual rate of 5.3% over the five years through 2029-30 to reach £34.8 billion. The total number of registered vehicles in the UK will pick up, driven by the production of electric vehicles, which bring additional challenges to insurers, requiring more complex and expensive repairs. Investors are also optimistic about capital markets as corporate earnings and economic growth look on the up, supporting stock markets. Fixed income is also set to benefit in the higher interest rate environment despite expected rate cuts, aiding coupon income. The growing adoption of AI will also support revenue growth in the coming years, allowing insurers to improve risk estimations and speed up decision-making.

The global car insurance market, valued at $629.45 million in 2025, is projected to experience robust growth, driven by a rising number of vehicle owners globally, increasing urbanization leading to higher vehicle density, and stricter government regulations mandating insurance coverage. The market's Compound Annual Growth Rate (CAGR) of 5.13% from 2025 to 2033 indicates a steady expansion, fueled by technological advancements such as telematics and usage-based insurance (UBI) that offer personalized premiums and improved risk assessment. The increasing adoption of online distribution channels is also streamlining the purchasing process and broadening market reach, attracting a wider customer base. Segmentation within the market reveals significant opportunities in both personal and commercial vehicle insurance, with third-party liability coverage remaining a cornerstone, while collision and comprehensive coverage are witnessing growth due to rising vehicle values and consumer preference for greater protection. Competition among major players such as State Farm, GEICO, and Progressive is fierce, leading to innovative product offerings and competitive pricing strategies. Geographic variations in market size and growth potential are significant. North America and Europe are expected to remain dominant regions, owing to high vehicle ownership rates and established insurance markets. However, developing economies in Asia-Pacific and certain regions in Africa are poised for substantial growth, propelled by rising middle-class populations and increasing vehicle sales. Challenges facing the market include fluctuating fuel prices impacting consumer spending, economic downturns affecting insurance purchases, and the increasing complexity of claims processing. Addressing these challenges requires insurers to implement efficient claims management systems and offer flexible, affordable insurance products tailored to diverse consumer needs. This adaptability will be key to continued success in this dynamic market. Recent developments include: June 2022: StoneRidge Insurance Brokers (SIB) has formed a new partnership deal with K5 Insurance, a full-service insurance brokerage. The partnership with K5 Insurance expands its personal and commercial presence in both Manitoba and Saskatchewan., January 2023: Tekion, the innovator of the Automotive Retail Cloud, partnered with Polly, the leading insurance marketplace for automotive retail. Through this partnership, dealers can access Polly’s insurance quotes directly from Tekion ARC.. Key drivers for this market are: Increase in Sales of Car, Increase in Number of Car Accidents. Potential restraints include: Increase in Sales of Car, Increase in Number of Car Accidents. Notable trends are: Rising Number of Road Accidents in America Region.

The global motor vehicle insurance market, valued at $849.02 billion in 2025, is projected to experience robust growth, driven by a compound annual growth rate (CAGR) of 10.44% from 2025 to 2033. This expansion is fueled by several key factors. Rising vehicle ownership, particularly in developing economies across Asia-Pacific and South America, significantly contributes to increased demand for insurance coverage. Furthermore, stringent government regulations mandating minimum insurance coverage in many regions are bolstering market growth. Technological advancements, such as telematics and usage-based insurance (UBI) programs, are also transforming the industry, offering personalized premiums and improved risk assessment, thereby attracting a wider customer base. The increasing prevalence of connected cars and the adoption of advanced driver-assistance systems (ADAS) are further contributing to this growth trajectory. The market is segmented by application (personal and commercial) and distribution channel (brokers, direct sales, banks, and others). Competition is intense, with major players like Allianz, AIG, and Berkshire Hathaway vying for market share through strategic partnerships, product diversification, and technological innovation. While growth is promising, potential restraints include economic downturns that may impact consumer spending on insurance and the increasing prevalence of fraud. The market's regional distribution reveals significant variations in growth potential. North America, particularly the US, currently holds a substantial market share, driven by high vehicle ownership and a mature insurance sector. The Asia-Pacific region, especially China and Japan, is experiencing rapid expansion due to rising affluence and increasing vehicle sales. Europe, with established insurance markets in the UK and France, is expected to contribute consistently to the overall market growth. The South American and Middle East & Africa regions, while currently smaller contributors, present significant untapped potential for future growth as their economies develop and vehicle ownership rates increase. The forecast period (2025-2033) will likely witness a continued shift towards digital distribution channels and innovative product offerings, fostering both competition and market expansion. Companies are adopting digital platforms, data analytics, and AI to enhance customer experience and operational efficiency.

In 2024, the leading ten motor insurers in the United Kingdom (UK) accounted for about 75 percent of the total UK market. Admiral Group, which includes Admiral, Bell, Diamond, elephant.co.uk, Veygo, and Gladiator, had the highest market share at 13 percent. This was followed by Aviva and the Direct Line Group at 12 percent market share. After Germany and France, the UK is the third-biggest motor insurance market in Europe. Motor insurance in the UK In the United Kingdom, it is mandatory to have motor insurance to drive a vehicle on UK roads. Motor insurance covers the costs incurred if one is in an accident which causes injury to oneself, another person or animal, or causes damage to one’s own or another’s vehicle or property. In 2018, the vast majority of households in the UK had motor insurance. As of 2019, gross premiums written on motor insurance in the UK amounted to over 20 billion euros. Motor insurance industry in Europe Home to one of the world’s leading insurance markets, Europe’s motor insurance industry is also quite extensive. As of 2019, total motor premiums written on the European insurance market amounted to a value of over 100 billion euros. At that time, Germany had the highest value of total motor claims expenditure paid on the insurance market in Europe, with claims paid amounting to about 25 billion euros.

In the five-year period spanning from 2017 through 2022, the loss ratio of general insurance companies in Brazil was relatively stable, hovering around the 50 percent market. In 2023, the loss ratio increased to roughly 44.2 percent; this increase was forecast to continue, with the loss ratio projected to reach 40.9 percent by 2030. Asia was seen to follow a similar trajectory beginning in 2017 at a loss ratio of 56 percent; it has been forecast that this rate will increase to 67.6 percent. The United States, on the other hand, saw a relatively stable loss ratio hovering within the 40 percent range.

The number of motor insurance companies in Italy decreased in recent years, especially in the land vehicle segment. In 2021, there were 44 insurers offering land vehicle insurance, down from 65 in 2012. The motor insurance segment in Italy is divided into two categories: motor liability (in Italian responsabilita' civile auto), and land vehicle (in Italian corpi veicoli terrestri). Motor liability insurance provides protection for damages caused while driving in case of accidents and covers injuries or damages to third parties and their property. On the other hand, land vehicle insurance is not mandatory and provides a coverage in case of theft, fire, and damage to own vehicle.

The global motor vehicle insurance market, valued at $784.1 million in 2025, is projected to experience robust growth, driven by a compound annual growth rate (CAGR) of 4.3% from 2025 to 2033. This expansion is fueled by several key factors. The increasing number of vehicles on the road globally, particularly in developing economies experiencing rapid motorization, significantly contributes to market growth. Furthermore, stricter government regulations mandating minimum insurance coverage in many regions are bolstering demand. Rising awareness of potential financial liabilities associated with accidents and the increasing affordability of insurance policies, particularly through digital platforms, are also driving market penetration. Competitive pricing strategies employed by major players like Allianz, Allstate Insurance, American International Group, Berkshire Hathaway Homestate, People’s Insurance of China, and Ping An Insurance further stimulate market expansion. However, the market faces certain headwinds. Fluctuations in fuel prices can impact vehicle usage and consequently insurance premiums. Economic downturns can reduce consumer spending on discretionary items like insurance. Furthermore, advancements in autonomous driving technology, while presenting long-term opportunities, also pose a challenge in the near term by potentially reducing accident rates and thus insurance claims. Despite these challenges, the long-term outlook for the motor vehicle insurance market remains positive, supported by sustained growth in vehicle ownership and the enduring need for risk mitigation in the transportation sector. The market segmentation (data not provided) likely reflects variations in policy types (comprehensive, liability, etc.) and customer demographics, offering further opportunities for tailored product development and targeted marketing strategies.

The United States Motor Insurance Market is Segmented by Coverage Type (Liability, Collision, Comprehensive, Personal Injury Protection (PIP) and More), Vehicle Type (Passenger Cars, Light Commercial Vehicles, Motorcycles, and More), Policy Type (Commercial, Personal), Distribution Channel (Agency, Direct, Bancassurance, and More), and Region. The Market Forecasts are Provided in Terms of Value (USD).

The statistic displays the aggregate value of motor claims paid on the European insurance markets from 2004 to 2020. The total worth of motor insurance claims paid out by the insurance providers in Europe amounted to over 97 billion euros in 2020.

The Automobile Insurance industry provides individuals and businesses with various lines of insurance needed to operate an automobile legally and invests a portion of underwritten premiums in financial instruments. The industry has experienced rising premium prices as operators have contended with higher claims volumes because of renewed traffic activity and higher costs to repair or replace a vehicle. Despite premium growth during most of the period, dropping consumer confidence and investment income in 2025 due to newly implemented tariffs and high interest rates have threatened ongoing industry operations. Overall, revenue has been rising at a CAGR of 0.7% to $385.4 billion over the past five years, including a small rise of 0.2% in 2025. While industry product segments typically do not fluctuate as a share of revenue on a year-to-year basis, individual lines of insurance can outpace the larger market. For example, plans for commercial entities outpaced personal auto policies as commercial automotive usage increased in the latter part of the period. Yearly fluctuations in each line of auto insurance's portion of industry premiums are expected to continue as “pay as you drive” pricing schemes, which provide quotes based on consumer-specific driving habits, grow in popularity. The industry is expected to continue experiencing a hardening price cycle over the next five years as profit is expected to remain high. During a hardening price cycle, insurers focus on shoring up their financial positions and increasing premium rates. High interest rates and an improving economic landscape are expected to benefit investment conditions for auto insurers. Overall, revenue is forecast to grow at a CAGR of 0.8% to $401.2 billion over the five years to 2030.

The global motor insurance market is a substantial and dynamic sector, exhibiting consistent growth driven by several key factors. Rising vehicle ownership, particularly in developing economies with expanding middle classes, fuels demand for insurance coverage. Technological advancements, such as telematics and AI-powered risk assessment, are transforming the industry, leading to more personalized pricing and improved fraud detection. Stringent government regulations mandating minimum insurance coverage in many regions also contribute to market expansion. However, the market faces challenges, including intense competition among established players and the emergence of new insurtech companies. Fluctuations in fuel prices and economic downturns can impact consumer spending on insurance, creating periods of slower growth. The market is segmented by various factors, including vehicle type (personal, commercial), coverage type (liability, comprehensive), and distribution channel (online, offline). Major players, including Clements Worldwide, Zhongan Insurance, and several large multinational insurers, compete fiercely for market share, often leveraging technological innovation and strategic partnerships to gain a competitive edge. The forecast period of 2025-2033 anticipates continued growth, though potentially at a moderated rate compared to previous years. This moderation may result from market saturation in some developed regions and economic uncertainties impacting consumer spending habits. The focus on innovation will likely remain crucial for success, with companies investing in data analytics, personalized services, and enhanced customer experiences to attract and retain policyholders. The integration of autonomous vehicle technology presents both opportunities and challenges, requiring insurers to adapt their risk models and pricing strategies to accommodate this evolving landscape. Regional variations will continue to exist, with developing markets showing higher growth potential than mature markets. The long-term outlook remains positive, suggesting continued expansion driven by increasing vehicle ownership, technological advancements, and evolving regulatory landscapes.

The global vehicle insurance market is set to grow from USD 928.09 billion in 2024 to USD 2053.05 billion by 2034, registering a CAGR of 8.26%. Explore key trends and insights.