Global Ridesharing Insurance Market 2023-2030

Global Ridesharing Insurance Market 2023-2030

Global Ridesharing Insurance Market Size, Share & Trends Analysis Report by Type (Peer-to-Peer Ridesharing, and Real-Time Ridesharing), by Coverage (Liability Coverage, Collision Coverage, Underinsured/Uninsured Motorist Coverage, and Comprehensive Coverage), and by Application (Personal and Commercial) Forecast Period (2023-2030)

The global ridesharing insurance market is anticipated to grow at a CAGR of 11.1% during the forecast period. Rideshare insurance is a sort of additional coverage that protects the car, the occupants, and any other individuals or property involved in an accident. This ride-hailing insurance endorsement can fill up the gaps between a person's motor insurance policy and the business policy of a ridesharing firm (also known as a transportation network company, or TNC).

Due to the growing demand for ridesharing, drivers sign up to work for rideshare companies, insurance providers are recognizing the need to offer specialized coverage to protect these drivers and passengers. Many insurance companies now offer rideshare-specific policies that cover drivers when they are working for a rideshare company. In addition to traditional rideshare insurance policies, some insurance companies are now offering hybrid policies that provide coverage for both personal and commercial use of a vehicle. This type of policy can be especially useful for drivers who use their cars for both ridesharing and personal use. Additionally, insurance companies are also leveraging new technology to offer innovative products and services to rideshare drivers. For example, some companies are using telematics data to offer usage-based insurance policies that provide coverage based on how much a driver uses their car for ridesharing. Thus, these factors propel the growth of the rideshare insurance market.

An increase in product launches is expected to promote the rideshare insurance market growth. For instance, in December 2021, car insurance startup Ride Protect launched a new innovative rideshare insurance offering. The policy covers rideshare and private use. As a result, consumers no longer need two separate policy types for their vehicle insurance. In addition, the application process uses technology from uBind, which includes a seamless digital experience for rideshare drivers. Moreover, the uBind platform provides a customer portal enabling rideshare and delivery drivers to login and manage their policies, renew their policies online, make adjustments to add other drivers and access their documents.

Segmental Outlook

The global ridesharing insurance market is segmented based on type, coverage, and application. Based on type, the market is bifurcated into peer-to-peer ridesharing and real-time ridesharing. By coverage, the market is sub-segmented into liability coverage, collision coverage, underinsured/uninsured motorist coverage, and comprehensive coverage. Further, by application, the market is sub-segmented into personal, and commercial. Among these, the comprehensive coverage sub-segment accounted for the dominant share of the market during the forecast period. The growth of this sub-segment is attributed to the fact that this policy generally will protect the car if it is crushed by a collapsing garage or destroyed by a tornado. Further, rideshare companies are increasingly providing insurance policies that provide comprehensive coverage for their drivers. These policies generally cover damage and losses to the driver’s vehicle caused by events other than collisions.

Commercial Sub-Segment is Anticipated to Hold a Prominent Share of the Global Ridesharing Insurance Market

The commercial sub-segment accounted for the dominant share of the market during the forecast period. This can be attributed to the increasing number of e-commerce businesses, online food delivery services across the globe, and new product launches. For instance, in October 2020, Allstate Insurance Company has been selected to provide commercial auto coverage to Lyft in California, Iowa, Indiana, Kansas, Kentucky, Missouri, Ohio, and West Virginia. The policies, managed by Allstate Business Insurance, provide coverage throughout the cycle of a Lyft trip, from when a driver turns on the Lyft driver app, to pick up and trip completion.

Regional Outlook

The global Ridesharing Insurance market is further segmented based on geography including North America (the US and Canada), Europe (UK, Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East and Africa, and Latin America). Among these, the Asia-Pacific region is projected to expand at a significant CAGR during the forecast period. This is attributed to a combination of regulatory requirements, technological advancements, and increasing competition, as well as the growing adoption of ridesharing services across the region.

Global Ridesharing Insurance Market Growth, by Region 2023-2030

Source: OMR Analysis

North America is Anticipated to Hold a Significant Share of the Global Ridesharing Insurance Market

North America is expected to continue to account for a larger revenue share among other regional markets during the forecast period due to the increasing popularity of ridesharing services, the need for specialized insurance coverage for rideshare drivers, the increasing number of accidents, and stringent regulations laid down by governments across various states about safety norms for drivers and passengers. Additionally, the rise in product launches to develop better insurance plans and the adoption of advanced technologies also helped to augment the rideshare insurance market growth in North America. For instance, in September 2019, US-based ridesharing company Uber announced that it will offer free insurance to its riders in case of accidents while on a trip across categories such as cars, autos, and motorcycles. Riders would be insured for up to $6,093.8 in case of accidental death or disability and up to $2,437.5 for hospitalization, including an OPD benefit of up to $609.4.

Market Players Outlook

The major companies serving the global ridesharing insurance market include Allstate Insurance Company, NerdWallet, Inc., and State Farm Mutual Automobile Insurance Company. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, funding, collaborations, and new product launches to stay competitive in the market. For instance, in December 2021, Allianz Partners and Uber partnered to provide benefits and protection insurance for independent drivers in Europe. The coverage included on-trip benefits in cases of accidents, injury, or hospitalizations, as well as off-trip benefits such as sick pay and maternity/paternity payments.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global ridesharing insurance market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.