Global Electric Vehicle (EV) Insurance Market Report and Forecast 2024-2032

Global Electric Vehicle (EV) Insurance Market Report and Forecast 2024-2032

Global Electric Vehicle (EV) Insurance Market Report and Forecast 2024-2032

Market Outlook

According to the report by Expert Market Research (EMR), the global electric vehicle (EV) insurance market size reached a value of USD 72.77 billion in 2023. Aided by the rapid adoption of electric vehicles worldwide and the specific insurance requirements these vehicles entail, the market is projected to further grow at a CAGR of 17.3% between 2024 and 2032 to reach a value of USD 307.49 billion by 2032.

Electric vehicle insurance covers a range of unique aspects that differentiate it from traditional car insurance, including coverage for batteries, electric motor parts, and potential liability issues related to electric powertrains. As electric vehicles become more mainstream, the need for specialized insurance products that reflect the distinct characteristics and value of EVs is increasingly critical.

The primary driver of the electric vehicle (EV) insurance market growth is the surging sales of electric vehicles, propelled by global efforts to reduce carbon emissions and the attractive incentives offered by various governments to encourage EV adoption. Additionally, the higher initial cost and specialised repair services required for EVs necessitate more comprehensive insurance coverage, further driving market growth.

Another significant factor propelling the electric vehicle (EV) insurance market expansion is the increasing awareness among consumers and insurers about the specific risks and needs associated with electric vehicles, such as battery damage, power system failure, and the need for specialised charging infrastructure. This awareness is prompting insurers to develop tailored insurance products that address these unique challenges.

Insurance providers across the world are increasingly offering customised insurance policies tailored to the specific needs of EV owners. As per the electric vehicle (EV) insurance market analysis, these policies may include coverage for battery replacement and repair, roadside assistance tailored for EVs, and coverage for home charging stations.

Insurers are integrating telematics and Internet of Things (IoT) technology to gather detailed data on driving behaviour and vehicle usage, which allows them to offer usage-based and behaviour-based insurance premiums. This technology adoption not only helps in accurately assessing risks but also promotes safer driving habits among EV owners.

As per the electric vehicle (EV) insurance market outlook, as electric vehicles feature advanced connectivity technologies, they are susceptible to cybersecurity risks. Insurers are now offering policies that cover threats related to data breaches and cyber-attacks, addressing a critical concern for modern EV owners. The EV insurance market is witnessing significant activity, with new entrants and existing insurers expanding their offerings to include electric vehicle coverage. Innovations in policy offerings, such as inclusive insurance that covers both the vehicle and charging infrastructure, are setting new standards in the market.

Collaborations between EV manufacturers and insurance companies in the electric vehicle (EV) insurance market are becoming common, aiming to offer bundled services that include insurance as part of the purchase price of an electric vehicle. These partnerships often provide enhanced coverage options at competitive rates, improving customer satisfaction and loyalty.

Governments worldwide are not only promoting the adoption of electric vehicles but also encouraging the development of insurance policies that support EV ownership. Regulatory bodies are working to establish standards that ensure fair practices and adequate coverage for EV owners.

Looking forward, the electric vehicle insurance market share is poised for substantial growth, driven by ongoing advancements in EV technology, increasing vehicle sales, and evolving consumer preferences. As the market matures, insurers will likely focus more on customer-centric products, cybersecurity, and integrating new technologies to enhance service delivery and risk management.

Market Segmentation

The market can be divided based on propulsion type, vehicle type, coverage type, distribution channel, vehicle age, and region.

Market Breakup by Propulsion Type

• Battery Electric Vehicles (BEV)
• Hybrid Electric Vehicles (HEV)

Market Breakup by Vehicle Type

• Passenger Cars
• Commercial Vehicles

Market Breakup by Coverage Type

• First Party Liability Coverage
• Third Party Liability Coverage

Market Breakup by Distribution Channel

• Insurance Companies
• Banks
• Insurance Agents/ Brokers
• Others

Market Breakup by Vehicle Age

• New Vehicle
• Used Vehicle

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global electric vehicle (EV) insurance market. Some of the major players explored in the report by Expert Market Research are as follows:

• Allianz SE
• AXA SA
• Zurich Insurance Group Ltd.
• The Travelers Companies, Inc.
• Liberty Mutual Insurance Company
• MAPFRE S.A.
• American International Group, Inc.
• Aviva plc
• Lemonade, Inc.
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.