Car Insurance Market Size

Car Insurance Market size was valued at USD 910.9 Billion in 2023 and is poised to grow from USD 978.12 Billion in 2024 to USD 1728.96 Billion by 2032, growing at a CAGR of 7.38% during the forecast period (2025-2032).

The rise in the number of accidents on roads greatly boosts the market opens for car insurance. The increase in vehicle congestion and roads can only mean that the risk of accidents will increase even higher and more so in urban regions. Due to this upsurge in the number of driving accidents, it has dawned on most drivers about the importance that a person should have comprehensive insurance. This has caused an increase in taking up auto insurance plans as people try to protect themselves from potential financial losses due to accidents by ensuring auto repair, medical expenses, and legal liabilities. Insurance companies actually worked at improving their claims procedures and diversifying their product lines due to the increasing demand for reliable and speedy coverage. 

Another factor fuelling the market's expansion is the growing use of telematics, which is used in car technology to track driving patterns and gather data. Due to this technology, insurers can provide UBI policies, where rates are based on current knowledge about a driver as far as driving behavior is concerned. Such plans enable insurers to arrive at far better estimates about the risk the policy carries while attracting safe drivers who get premium discounts for their safety. It is expected that telematics will dramatically change the car insurance market in future developments. Therefore, as governments push all around for more adoption and incentivization of electric vehicles, investments are being made by insurers to come up with specific plans for EVs.

US Car Insurance Market is poised to grow at sustainable CAGR for the next forecast year