USD 689.72 Billion
Report ID:
SQMIG40P2004 |
Region:
Global |
Published Date: July, 2025
Pages:
190
|Tables:
86
|Figures:
71
Global Motor Insurance Market size was valued at USD 689.72 Billion in 2023 poised to grow between USD 78.34 Billion in 2024 to USD 876.61 Billion by 2032, growing at a CAGR of 2.7% in the forecast period (2025-2032).
The global motor insurance market is significantly influenced by the factors of increasing vehicle ownership, accident rates, and growing mandatory insurance requirements all around the world. As personal mobility expands and traffic issues are exacerbated in growing metropolitan areas, insurers faced with greater claim numbers push both premium growth and the implementation of digital insurance practices. Furthermore, the emergence of autonomous vehicles and connected car technology is substantially changing risk exposures in the insurance segment, driving a reconfiguration of pricing, regulations, and policies.
Moreover, regulatory environments around the world are changing quickly. Countries across Europe, the Asia-Pacific, and North America are requiring the use of motor liability insurances with more strict compensation systems and digital claims infrastructure. This is driving a regulatory environment encouraging behaviours consistent with usage-based insurance (UBI), telematics, and new tools for real time policy management; all are reshaping the expectations of consumers as well as operational efficiencies. Along with compliance and personalization slowly being built into the policies of today, insurers are utilizing AI and automation to improve underwriting, reduce fraud, and improve customer service underpinning motor insurance as an important part of the global property and casualty insurance market.
How is AI Revolutionizing Risk Assessment in the Global Motor Insurance Market?
Artificial Intelligence (AI) is radically changing the global motor insurance sector by enabling precise, statistically based risk assessments and a more personalized policy selling. Insurers have begun using AI to examine real-time driving behavior and telemetry from the vehicle, as well as historical claims to set premiums, instantly detect fraud, and correctly underwrite. With AI-powered telematics, dash-cams, and connected car technology, insurers are able to understand details about driver behavior, including speed, braking, and mileage, in minute detail leading to better prediction, and efficiency which not only optimizes the pricing of the policy, but also develops safer drivers for their customers.
In April 2025, Allianz collaborated with a telematics provider to deliver an innovative dynamic motor insurance product with monthly premium adjustments based on AI analysed driving behavior. The initiative involves rewarding low-risk drivers with lower premiums and greater transparency regarding data inputs into policy pricing. Through this innovation, they are shaping a new course for usage-based insurance (UBI) models and furthering the digitalisation of motor insurance.
Market snapshot - 2025-2032
Global Market Size
USD 689.72 Billion
Largest Segment
Comprehensive Insurance
Fastest Growth
Third-Party Liability
Growth Rate
2.7% CAGR
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The global motor insurance market is segmented based on coverage type, distribution channel, vehicle type, and region. In terms of coverage type, the market is divided into third-party liability and comprehensive Insurance. Based on distribution channel, the market is bifurcated into agents & brokers and direct response. Based on vehicle type, the market is trifurcated into passenger vehicles, commercial vehicles, and electric vehicles. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Central & South America, and the Middle East and Africa.
Based on the global motor insurance market forecast, comprehensive insurance remains the most dominant segment due to its wide-ranging benefits, including protection against theft, fire, vandalism, and damages to one's own vehicle. As a result of increased market penetration of the value-added features (e.g., zero-depreciation / engine protection / roadside assistance) the numbers show comprehensive coverage is now the leading preference for a consumer seeking full-spectrum financial protection for their vehicle in an urban city.
Third party liability insurance is anticipated to be the fastest growing segment especially in developing markets where regulations are enforcing stricter minimum legal compliance. The relatively low cost of third-party coverage and the heightened awareness of car owners is constantly increasing adoption. As legal frameworks for road safety and compliance become stricter, insurers are offering a value chain experience on third party plans by bundling legal analysis and digital claim settlement tools for efficiency and compliance.
Agents & brokers remain the dominant channel within the distribution landscape of the global motor insurance market, particularly those markets that favor personal interaction and advice. The ability to provide custom solutions and guide customers through complicated policy selections is critical in the personal and commercial segments of vehicle insurance. Their role is only increasing in importance with plans for strategic partnerships and other regional outreach programs to add to and capture more market share.
Direct response channels, including online channels, are the fastest growing channels, due to digitally native consumers and cost-efficiency, but also with the advancement of real-time policy issuance, instant premium quotes, and UBI integrated with telematics. The direct response channels have flexibility, transparency, and speed in their workflow and delivery, which continues to frame and reshape how modern consumers navigate and manage their motor insurance policy.
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North America is the largest motor insurance market in the world due to high vehicle penetration, state laws requiring insurance, telematics integration, and a mature automobile industry. Innovations in insurance solutions such as usage-based or behavior-based policies will only come to existence due to connected car technology today. The increasing understanding of digital claims made by today's consumers, and their increasing partnerships with insurers and automakers, are sure to improve customer experiences and make North America the most lucrative regional market.
The United States dominates the North American motor insurance market, thanks to its large vehicle fleet, and by laws requiring state mandated insurance. There is significant demand for digital-first insurance platforms and AI-assisted claims automation, which will further spur regional motor insurance market growth. Leading providers are offering customizable, real-time pricing based on driving behaviours. The growing adoption of electric vehicles (EVs), as well partnerships with auto-tech companies, are shifting traditional underwriting processes, legitimizing the U.S. market's leading position.
Canada’s motor insurance market is also evolving fast because insurance (at a provincial level) is mandatory and vehicle ownership is rising. There is a significant move toward digital policy management and integration of real-time driving data. Publicly funded and private insured model ownership groups and government-led road safety initiatives are promoting transparency and competition. As insurers increasingly equip their insurers with telematics and predictive analytics, Canada's motor insurance market will start contributing to North America's regional motor insurance market outlook.
Based on the global motor insurance market analysis, Asia Pacific is becoming the leading player on the global stage of motor insurance, given the trends of increasing urbanization, middle-class vehicle ownership, and regulatory reform in the largest economies. Governments across China, India, Japan, and South Korea are even promoting awareness of insurance and digital use. In addition, the growth of the automotive ecosystem, along with pay-as-you-drive models and AI or computer-based underwriting, gives the region the position of being a leading growth engine in the global market.
Japan is significant to Asia Pacific's motor insurance market, as it has an advanced automotive industry that's technologically capable, as well as a higher density of vehicles. Increasing dependence on driver assistance systems (ADAS) and autonomous technology also affects policy pricing and structure. Japanese insurers are bundling mobility support, EV-specific coverage, and positive accident prevention into various comprehensive packages. Innovation around claim settlement and AI-led risk analytics keeps Japan ahead about the development of motor insurance in the Asia Pacific region.
The motor insurance market in South Korea is continuing to grow rapidly, aided by demand for smart coverage options and the growing number of connected cars. Government support for digital transformation of both financial services and automotive safety is encouraging insurers to adopt telematics and real-time monitoring tools. This market is built on dynamic pricing models, ever-improving customer engagement platforms, and a data driven consumer base, making South Korea one of the fastest growing motor insurance markets in the Asia Pacific Region.
Europe's motor insurance market is experiencing continuous expansion due to emplacing strict vehicle safety regulations, a rise in EV adoption, and cross border driving. It also benefits from strong regulatory regimes like Solvency II and eCall providing clarity on claims responsiveness and risk transparency. Countries like Germany, the UK and France are leading the way in creating digital innovation like multiplatform or multi-channel distribution, eco-driving discounts, and personalized insurance options, making Europe essential to the global motor insurance market.
Germany's dominance arises from its worldwide stature as a premier automotive manufacturer, its rigorous insurance regulations, and its proactive use of digitalization. Insurers are using up-to-the-second vehicle diagnostics and predictive analytics to design precision-based covers. As the EV infrastructure develops with increasing investment and collaboration between insurers and OEMs (original equipment manufacturers), Germany will remain dominant in proactive solutions for the future of motor insurance.
The UK motor insurance market is shaped by a well-regulated environment and an especially competitive and growing digital ecosystem. Consumers use price comparison websites, online aggregators, and AI-enabled claims services to enhance their consumer choice and ultimately speed up the settlement process. Specifically, the focus on green vehicles and road safety is supporting the development of specialized motor insurance products. Altogether, the UK's robust insurance infrastructure and quick uptake of technology indicate that it is one of the leading markets in Europe.
In Italy, the motor insurance market is beginning to shift gear, owing to policy incentives promoting safer motoring and digital policyholder engagement. Innovations such as telematics based on black boxes, and anti-fraud technology, are improving claims management systems. Government-supported awareness schemes are increasing global motor insurance market penetration, especially in southern regions of the country. All these advancements, along with a better pricing approach and customer experience, are evidence of steady overall growth for the Italian motor insurance market.
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Rising Vehicle Ownership and Urbanization
Regulatory Mandates for Vehicle Insurance
High Claim Settlement Costs
Fraudulent Claims and Risk of Moral Hazard
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The competitive landscape of the global motor insurance market trends is defined by technological integration, customer-centric innovations, and strategic collaborations. Key international players include Allianz, AXA, State Farm, Progressive, and GEICO. For instance, Progressive is enhancing its telematics programs to refine risk-based pricing, while AXA is investing in digital platforms to improve customer engagement. Allianz continues to develop usage-based insurance (UBI) models to personalize premiums. These strategies aim to boost underwriting efficiency, policyholder satisfaction, and respond to the changing mobility ecosystem.
The global motor insurance market is also undergoing accelerated innovation through the rise of insurtech startups, which are using advanced analytics, AI, and telematics to create flexible insurance solutions adapted to the fast-evolving needs of consumers. These companies are going to market with digital-first models that can provide seamless claims processing, monitor the risk in real-time, and use adaptive pricing; this is increasing the competitiveness of the marketplace and forcing incumbents to centralize and modernize their legacy insurance models.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global motor insurance market is undergoing a significant transformation driven by rising vehicle ownership, urbanization, and stringent regulatory mandates for vehicle coverage. Disruptive innovations, such as usage-based insurance (UBI), telematics, and AI-based analytics, are changing the game for risk assessment, underwriting, and customer engagement. Insurers are now able to provide immediate, behavioral pricing and expedite the claims process, improving both accuracy and customer experience.
Regional markets. including North America, Europe, and Asia-Pacific, have various growth drivers, from digital infrastructure and connected vehicles to changing mobility trends and regulatory changes. The competitive environment, created by Insurtech and legacy insurers, allows for continuous innovation and digital disruption.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 689.72 Billion |
Market size value in 2032 | USD 876.61 Billion |
Growth Rate | 2.7% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Motor Insurance Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Motor Insurance Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Motor Insurance Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Motor Insurance Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Global Motor Insurance Market size was valued at USD 689.72 Billion in 2023 poised to grow between USD 78.34 Billion in 2024 to USD 876.61 Billion by 2032, growing at a CAGR of 2.7% in the forecast period (2025-2032).
The competitive landscape of the global motor insurance market trends is defined by technological integration, customer-centric innovations, and strategic collaborations. Key international players include Allianz, AXA, State Farm, Progressive, and GEICO. For instance, Progressive is enhancing its telematics programs to refine risk-based pricing, while AXA is investing in digital platforms to improve customer engagement. Allianz continues to develop usage-based insurance (UBI) models to personalize premiums. These strategies aim to boost underwriting efficiency, policyholder satisfaction, and respond to the changing mobility ecosystem. 'Allianz (Germany)', 'AXA (France)', 'State Farm (USA)', 'Progressive Corporation (USA)', 'GEICO (USA)', 'Liberty Mutual (USA)', 'Mapfre (Spain)', 'Nationwide (USA)', 'Sompo Holdings (Japan)', 'Tokio Marine Group (Japan)', 'Direct Line Group (United Kingdom)', 'Mitsui Sumitomo Insurance (Japan)', 'Root Insurance (USA)', 'Cuvva (United Kingdom)', 'Metromile (USA)'
The continuous rise in vehicle ownership globally, particularly in emerging economies, is increasing the need for motor insurance. The high rate of urbanization increased disposable income, and larger middle-class population are driving this growth, as people buy both personal and commercial vehicles and causing the motor insurance industry to grow.
Adoption of Telematics and Usage-Based Insurance: Telematics technology and usage-based insurance models (UBI) are being adopted globally in the motor insurance sector to measure a driver’s behavior in real-time. By utilizing telematics data, insurers can create individual premiums based on a driver’s actual driving activity, such as speed, braking, and distance travelled. This improves pricing accuracy, encourages safer driving and customer retention using premium structures that are fairer to consumers.
What Strategic Advantages Make North America the Global Leader in the Motor Insurance Market?
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