Motor Insurance Market Size, Share, Trends and Forecast by Policy Type, Premium Type, Distribution Channel, and Region, 2025-2033

The global motor insurance market size was valued at USD 911.64 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 1,685.92 Billion by 2033, exhibiting a CAGR of 7.1% from 2025-2033. North America currently dominates the market owing to the rise of usage-based insurance (UBI) powered by telematics, increasing digitalization through mobile apps and online platforms, and the integration of artificial intelligence (AI) to enhance risk assessment, claims processing, and customer service, all leading to more personalized and efficient offerings.

Motor insurance is an automotive insurance policy that offers coverage to the owner of cars, two-wheelers, commercial trucks, and other road vehicles against financial losses caused by accidents or physical damages. It also includes protection against legal liabilities arising due to an accident and resulting in death, body injuries, or property damage to a third party. Nowadays, insurance companies are offering different plans and add-ons, such as cashless claims, depreciation cover, 24/7 road assistance, and towing facility, to provide better coverage and assistance during the claiming process.

Motor Insurance Market Trends:

Vehicles have currently become a crucial means of transportation around the world. However, a significant rise in the number of private cars has escalated the risk of road accidents and vehicle damage. This represents one of the key factors catalyzing the demand for motor insurance across the globe. Apart from this, governing agencies of various countries are mandating businesses to purchase a motor insurance policy for their commercial vehicles, such as auto-rickshaws, cabs, school buses, tractors, vans, and trucks. Moreover, the increasing use of commercial vehicles for inter-city passenger tour and travel, and heavy-duty vehicles for bulk transportation of goods is creating a positive outlook for the market. Besides this, insurers are offering online insurance solutions with hassle-free and fully digital insurance comparing, buying, and renewing platforms. This, in confluence with the growing internet penetration and the rising reliance on smartphones, is promoting the adoption of motor insurance worldwide. Furthermore, the introduction of usage-based vehicle insurance (UBI) that employs individualized data gathered by the Internet of Things (IoT) sensors to determine insurance premiums is anticipated to influence the market positively.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global motor insurance market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on policy type, premium type, and distribution channel.

Breakup by Policy Type:

• Liability Insurance
• Comprehensive Coverage
• Collision Coverage
• Personal Injury Protection

Breakup by Premium Type:

• Personal Insurance Premiums
• Commercial Insurance Premiums

Breakup by Distribution Channel:

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

Breakup by Region:

• North America
• United States
• Canada
• Asia-Pacific
• China
• Japan
• India
• South Korea
• Australia
• Indonesia
• Others
• Europe
• Germany
• France
• United Kingdom
• Italy
• Spain
• Russia
• Others
• Latin America
• Brazil
• Mexico
• Others
• Middle East and Africa

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players being American International Group Inc., Assicurazioni Generali S.p.A., AXA Cooperative Insurance Company (Gulf Insurance Company K.S.C.), Bajaj Allianz General Insurance Company Limited, China Ping An Insurance Co. Ltd., Government Employees Insurance Company (Berkshire Hathaway Inc.), Reliance General Insurance Company Limited (Reliance Capital Limited ), State Farm Mutual Automobile Insurance Company, The Hanover Insurance Group Inc. (Opus Investment Management), The Progressive Corporation, Universal Sompo General Insurance Company Limited and Zurich Insurance Group Ltd.

Key Questions Answered in This Report

1.What is motor insurance?

2.How big is the motor insurance market?

3.What is the expected growth rate of the global motor insurance market during 2025-2033?

4.What are the key factors driving the global motor insurance market?

5.What is the leading segment of the global motor insurance market based on policy type?

6.What is the leading segment of the global motor insurance market based on distribution channel?

7.What are the key regions in the global motor insurance market?

8.Who are the key players/companies in the global motor insurance market?