Car Insurance Market Size, Share & Trend Analysis Report By Coverage, By Distribution Channel, By Vehicle Age, By Application, By Region, And Segment Forecasts, 2024 - 2030

Car Insurance Market Size, Share & Trend Analysis Report By Coverage, By Distribution Channel, By Vehicle Age, By Application, By Region, And Segment Forecasts, 2024 - 2030

Car Insurance Market Size & Trends

The global car insurance market size was estimated at USD 730.1 million in 2023 and is projected to grow at a CAGR of 13.7% from 2024 to 2030. The rising number of road accidents is significantly contributing to the growth of the car insurance market. As urban areas become more congested and the number of vehicles on the road rises, the likelihood of accidents naturally increases. This surge in accidents has led to a heightened awareness among drivers about the need for comprehensive insurance coverage. Consequently, more consumers are purchasing car insurance policies to safeguard against the financial risks associated with accidents, such as vehicle repairs, medical expenses, and legal liabilities. Insurance companies are responding to this trend by expanding their product offerings and enhancing claims processes to meet the growing demand for reliable and swift coverage.

The rising adoption of telematics, which involves using in-car devices to monitor driving behavior and collect data, is also contributing to the growth of the market. This technology allows insurers to offer usage-based insurance (UBI) plans, where premiums are determined based on real-time data about driving habits. These personalized plans appeal to safer drivers who can benefit from lower premiums while also providing insurers with more accurate risk assessments. As telematics becomes more sophisticated, it is expected to play a pivotal role in reshaping the car insurance landscape.

The growing popularity of Electric Vehicles (EVs) is also contributing to the market growth. With governments worldwide pushing for greener transportation and offering incentives for EV adoption, insurers are developing specialized policies tailored to these vehicles. EV insurance policies often consider factors unique to electric cars, such as battery life, charging infrastructure, and specialized repair costs. Insurers are also considering the environmental benefits of EVs, potentially offering lower premiums for these vehicles. This shift towards EVs prompts insurers to rethink traditional underwriting models and create new products catering to the changing automotive landscape.

The car insurance industry is also being shaped by the increasing prevalence of autonomous vehicles (AVs). As AV technology advances and becomes more widespread, traditional risk models based on human driving behavior are becoming less relevant. Insurers are now focusing on the technological reliability of AV systems and the liability of manufacturers in the event of a malfunction. This shift from driver-centric to vehicle-centric insurance is expected to lead to new types of policies and coverage options. The rise of AVs presents both challenges and opportunities for insurers as they navigate uncharted territory in risk management.

Digital disruption is another major trend impacting the car insurance market, with a growing number of customers preferring online platforms for purchasing policies and managing claims. Insurtech companies are leading the charge, offering seamless digital experiences and innovative products that challenge traditional insurers. The convenience and transparency of digital platforms are driving higher customer satisfaction and retention rates. Additionally, artificial intelligence and machine learning are being used to automate underwriting processes and improve fraud detection. This digital shift is enhancing operational efficiency and enabling insurers to better cater to evolving consumer preferences, thereby contributing to the market's growth.

Global Car Insurance Market Report Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the car insurance market based on coverage, distribution channel, vehicle age, application, and region.

• Coverage Outlook (Revenue, USD Million, 2018 - 2030)
• Third Party
• Comprehensive
• Collision
• Others
• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)
• Insurance Agents/Brokers
• Direct Response
• Banks
• Others
• Vehicle Age Outlook (Revenue, USD Million, 2018 - 2030)
• New Vehicle
• Used Vehicle
• Application Outlook (Revenue, USD Million, 2018 - 2030)
• Personal
• Commercial
• Regional Outlook (Revenue, USD Million, 2018 - 2030)
• North America
• U.S.
• Canada
• Mexico
• Europe
• Germany
• UK
• France
• Asia Pacific
• China
• India
• Japan
• South Korea
• Australia
• Latin America
• Brazil
• Middle East & Africa (MEA)
• UAE
• Kingdom of Saudi Arabia (KSA)
• South Africa

Please note The report will be delivered in 4-8 business days upon order notification.