Car Insurance Market Size
| Study Period | 2020-2029 |
| Market Size (2024) | USD 629.45 Billion |
| Market Size (2029) | USD 808.34 Billion |
| CAGR (2024 - 2029) | 5.13 % |
| Fastest Growing Market | Asia |
| Largest Market | Asia |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Car Insurance Market Analysis
The Car Insurance Market size in terms of gross written premiums value is expected to grow from USD 629.45 billion in 2024 to USD 808.34 billion by 2029, at a CAGR of 5.13% during the forecast period (2024-2029).
With the rise in the volume of car sales post-pandemic, the car insurance industry is also observing positive growth, raising the car insurance premium in global comparison with the leading sales of cars, with SUVs and medium cars having the largest share in sales. Non-life insurance penetration is creating opportunities for the expansion of car insurance products.
Post-COVID-19, to overcome challenges, insurers established new tendencies in current policies such as pay-as-you-drive, usage-based insurance, and telematics insurance plans. They adopted technologies to enhance the claim approaches and grant a higher user experience. The increase in the market size of the insurtech industry post-pandemic has resulted in an increasing number of users making online claims and buying insurance products for their cars online.
Rising economic inequality and declining employment have led to an increase in the motor vehicle theft rate, resulting in an increasing number of car owners opting for preventive measures of car insurance. With the rise in inflation and interest rates, business strategy car insurance providers are declining their insurance premiums rates to attract an increasing number of car buyers for insurance. With rising car sales and efforts by insurance companies to expand their insurance products, the car insurance market is expected to have positive growth over the coming period.
Car Insurance Market Trends
Rising Number of Road Accidents in America Region
United States, Georgia, and Chile are among the American countries with the largest number of car accidents and the fatalities associated with them. As the price of cars is observed, a continuous increase cost of damage, even in minor car accidents, is becoming expensive, resulting in an increasing number of car owners opting for insurance to prevent unseen losses. Speeding, drunk driving, and distraction have emerged as some of the major reasons for car accidents, and they have increased human fatalities as well. Considering these events, car insurance is coming up with various types of insurance products covering car damage, hospitalization and treatment of third parties, personal accident cover, and others, with an expanding market for car insurance providers.
Rising Digital Innovation
With a rising penetration of digital technologies in the insurance market, car insurance products have also increased their online presence with which an increasing number of users can claim, purchase, and renew their insurance through the online channels of the insurance providers. For example, in the United Kingdom, the share of motor insurance premiums written online is observing a continuous rise, existing at more than 60% and driving digital insurance in the car segment. In addition, telematics and usage-based insurance have created a new revolution in the car insurance market, resulting in insurance companies calculating the insurance premium based on the driving habits of the user. As the market size of Insurance technology is expanding globally innovations in digital cash insurance products are expected to increase over the period.
Car Insurance Industry Overview
The car insurance market is fragmented with an increasing number of players in the market. The market has a large number of players existing in different regional markets. Technological innovations are resulting in the creation of customized car insurance policies based on collected driving details of the driver. Some of the existing players in the car insurance market are State Farm, GEICO, Progressive Corporation, Allstate Corporation, and Berkshire Hathaway.
Car Insurance Market Leaders
-
State Farm
-
GEICO
-
Progressive Corporation
-
Allstate Corporation
-
Berkshire Hathaway
*Disclaimer: Major Players sorted in no particular order
Car Insurance Market News
- June 2022: StoneRidge Insurance Brokers (SIB) has formed a new partnership deal with K5 Insurance, a full-service insurance brokerage. The partnership with K5 Insurance expands its personal and commercial presence in both Manitoba and Saskatchewan.
- January 2023: Tekion, the innovator of the Automotive Retail Cloud, partnered with Polly, the leading insurance marketplace for automotive retail. Through this partnership, dealers can access Polly’s insurance quotes directly from Tekion ARC.
Car InsuranceMarket Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increase in Sales of Car
4.2.2 Increase in Number of Car Accidents
4.3 Market Restraints
4.3.1 Regulations are Posing Barriers to Entry for New Players
4.4 Market Opportunities
4.4.1 Digital Technology Creates Opportunities for New Entrants
4.5 Industry Attractiveness: Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Technological Innovations in Car Insrance Market
4.7 Insights on Regulatory Trends Shaping the Market
4.8 Impact of COVID 19 on the Market
5. MARKET SEGMENTATION
5.1 By Coverage
5.1.1 Third-Party Liability Coverage
5.1.2 Collision/Comprehensive/Other Optional Coverage
5.2 By Application
5.2.1 Personal Vehicles
5.2.2 Commercial Vehicles
5.3 By Distribution Channel
5.3.1 Direct Sales
5.3.2 Individual Agents
5.3.3 Brokers
5.3.4 Banks
5.3.5 Online
5.3.6 Other Distribution Channels
5.4 By Region
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Rest of North America
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Russia
5.4.2.5 Spain
5.4.2.6 Italy
5.4.2.7 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 India
5.4.3.2 China
5.4.3.3 Japan
5.4.3.4 Australia
5.4.3.5 Rest of Asia-Pacific
5.4.4 South America
5.4.4.1 Brazil
5.4.4.2 Argentina
5.4.4.3 Rest of South America
5.4.5 Middle East
5.4.5.1 United Arab Emirates
5.4.5.2 South Africa
5.4.5.3 Rest of Middle East and Africa
5.4.6 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 State Farm
6.2.2 GEICO
6.2.3 Progressive Corporation
6.2.4 Allstate Corporation
6.2.5 Berkshire Hathaway
6.2.6 USAA (United Services Automobile Association)
6.2.7 Zurich Insurance Group
6.2.8 AXA
6.2.9 Liberty Mutual Group
6.2.10 Nationwide Mutual Insurance Company
6.2.11 Travelers Companies Inc.
6.2.12 American Family Insurance Group
6.2.13 Farmers Insurance Group
6.2.14 Generali Group
6.2.15 Direct Line Insurance Group*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Car Insurance Industry Segmentation
Car insurance is a contract between the car owner and the insurance company where the car owner agrees to pay a fixed premium rate over some time for protection against financial loss in the event of any damage or loss to the car.
The study gives a brief description of the car insurance market and includes details on car insurance premiums, investment by car insurance companies, and the launch of new car insurance products.
The car insurance market is segmented by coverage, by application, by distribution channel, and by region. By coverage, the market is segmented into third-party liability coverage and collision/comprehensive/other optional coverage. By application, the market is segmented into personal vehicles and commercial vehicles. By distribution channel, the market is segmented into individual agents, brokers, banks, online, and other distribution channels. By region, the market is segmented into north america, europe, asia-pacific, south america, middle east and africa, rest of the world.
The report also covers the market sizes and forecasts for the car insurance market in value (USD) for all the above segments.
| By Coverage | |
| Third-Party Liability Coverage | |
| Collision/Comprehensive/Other Optional Coverage |
| By Application | |
| Personal Vehicles | |
| Commercial Vehicles |
| By Distribution Channel | |
| Direct Sales | |
| Individual Agents | |
| Brokers | |
| Banks | |
| Online | |
| Other Distribution Channels |
| By Region | |||||||||
| |||||||||
| |||||||||
| |||||||||
| |||||||||
| |||||||||
| Rest of the World |
Car InsuranceMarket Research FAQs
How big is the Car Insurance Market?
The Car Insurance Market size is expected to reach USD 629.45 billion in 2024 and grow at a CAGR of 5.13% to reach USD 808.34 billion by 2029.
What is the current Car Insurance Market size?
In 2024, the Car Insurance Market size is expected to reach USD 629.45 billion.
Who are the key players in Car Insurance Market?
State Farm, GEICO, Progressive Corporation, Allstate Corporation and Berkshire Hathaway are the major companies operating in the Car Insurance Market.
Which is the fastest growing region in Car Insurance Market?
Asia is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Car Insurance Market?
In 2024, the Asia accounts for the largest market share in Car Insurance Market.
What years does this Car Insurance Market cover, and what was the market size in 2023?
In 2023, the Car Insurance Market size was estimated at USD 597.16 billion. The report covers the Car Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Car Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Car InsuranceIndustry Report
Statistics for the 2024 Car Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Car Insurance analysis includes a market forecast outlook to for 2024 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
