Global Vehicle Insurance Market Size, Share & Trends Analysis Report, By Coverage, By Application, By Distribution Channel, By Vehicle Type, By Region Forecasts, 2024 – 2032

Global Vehicle Insurance Market Size, Share & Trends Analysis Report, By Coverage, By Application, By Distribution Channel, By Vehicle Type, By Region Forecasts, 2024 – 2032

Global Vehicle Insurance Market was valued at US $ 852.53 billion in 2023 and is expected to reach US $ 1593.87 billion by 2032 growing at a CAGR of 7.20% during the forecast period 2024 – 2032.

The rising cost of consumer products and the expanding need for personal mobility solutions Whether or not a family owns a car, there are a number of factors driving up demand for automobiles globally and supporting the steady growth of the vehicle insurance market, including increased disposable income, rising living standards, and the rise of the middle class. Additionally, the demand for commercial cars is rising due to the rapidly expanding economies of both developed and emerging nations. Commercial automobile demand has surged globally as a result of the e-commerce industry's explosive growth and growing need for shipping solutions. Over the course of the projection period, there will probably be a rise in the number of personal and commercial automobiles, which will raise demand for auto insurance. Getting auto insurance is required by law in several nations. Therefore, laws governing the purchasing of automobiles have been a major factor in the growth of the auto insurance business. In addition, there is a growing need for auto insurance due to the rise in accidents on our roadways. It offers car owners financial protection against physical injury brought on by collisions and theft.

“Third party liability segment, by coverage, to be dominating market from 2023 to 2030.”

In terms of coverage percentage, third party liability led the global vehicle insurance market in 2022. The fact that this kind of coverage protects against any damage, harm, or death to a third party may be its strongest feature. Legal and financial issues are covered by third-party liability insurance. The likelihood that third parties would suffer harm as a result of auto accidents is another important aspect that makes third party liability coverage insurance an absolute requirement.

However, this extensive coverage category is anticipated to develop at the quickest rate during the projected period. The comprehensive policy also covers damage to clients' vehicles and other parties. One of the main benefits of comprehensive insurance over third-party coverage is this, which fuels demand for it globally.

“Personal Vehicle segment, by application, to be dominating market from 2023 to 2030.”

As per her application, personal vehicle held a dominant position in the international vehicle insurance market in 2022. The world's vast private automobile population necessitates auto insurance. The affordability of personal autos due to easy financing and EMI alternatives is increasing demand for auto insurance. The swift expansion of electric cars is anticipated to have a big impact on how the global auto insurance market develops in the coming years.

The commercial segment is predicted to grow at the quickest rate during the projection period. The commercial automotive market has been developing as a result of the increased popularity of online taxi services, car rental firms, and electric public transportation vehicles. Furthermore, as economic activity increases and modernization advances quickly, the need for commercial vehicles grows. As a result, during the course of the forecast period, the market for auto insurance is anticipated to grow.

“North America to be largest region in Vehicle Insurance market.”

North America has the biggest global market share for vehicle insurance as of 2023. The vehicle insurance market in North America is changing due to a number of factors, including the emergence of several large insurance companies, growing consumer awareness of the advantages of auto insurance, high personal income and rising car demand, particularly from rural families, and the expansion of middle-class affordability in suburban areas. Experts predict that demand for electric vehicles will rise sharply across North America in the coming years as buyers become aware of their advantages over regular cars. At the same time, the demand for motor insurance would skyrocket. Both in the US and Canada, the insurance sector is extremely advanced. Vehicle insurance are rising in North America as more and more customers purchase or renew their policies online. Furthermore, in the anticipated future, insurance companies' technological advancements and successes will have a significant impact on auto insurance.

Vehicle Insurance Competitive Landscape

The competitive landscape of the Vehicle Insurance market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Vehicle Insurance technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Vehicle Insurance market is highly competitive, with numerous companies vying for market share. Prominent companies in the Vehicle Insurance Market include:

Major Players:

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

Recent Developments:

One of the biggest insurance firms in the world, AXA S.A., has also unveiled STeP, its newest digital claims solution, to streamline auto insurance.

In May 2021, GEICO teamed with Tractable, an AI technology firm, to expedite its auto claim and repair process. AI is used to evaluate vehicle damage based on pictures, just like a human appraiser would.

The ""revolutionary"" ""Pay as You Drive"" (PAYD) policy, introduced by New India Assurance (NIA) on Monday, January 20, 2023, includes features including discounts on renewals, coverage beyond a certain distance, and additional protections like zero depreciation, roadside assistance, return to invoice, etc. The policy offers a number of advantages. For example, if the car stays within the allotted mileage, the customer can save money by receiving a discount on the renewal charges. Applying the discount to the baseline ""own damage premium"". Moreover, even if the car has been driven over the threshold limit, the coverage will endure for the balance of the term. The biggest non-life insurance company in India stated in a press statement that customers can still receive a renewal discount, albeit at a reduced applicable range.

In addition to these savings, the policyholder can pay extra for additional protections like engine protection, zero depreciation, return to invoice, roadside assistance, etc.