Global Vehicle Insurance Market was valued at US $ 852.53 billion in 2023 and is expected to reach US $ 1593.87 billion by 2032 growing at a CAGR of 7.20% during the forecast period 2024 – 2032
Increasing affordability of consumer goods, growing need for personal mobility solutions whether or not a family owns car itself, rising disposable income and living standards along with the rise of middle class are just some factors spurring demand on cars around the world as well as contributing to vehicle insurance market steady growth. In addition, rapidly expanding economic activity both developed and developing countries means growing demand for commercial vehicles. As the global e-commerce industry has grown exponentially, this growth in demand for shipping solutions created a need for commercial cars and increased them throughout the world. Rising numbers of personal and business vehicles over the forecast period are likely to bring about a corresponding increase in demand for auto insurance. In many countries, the law requires purchasing auto insurance.. As a result, one of the important reasons behind car insurance market expansion has been related to legislative rules governing purchase of vehicles. Moreover, the growing number of accidents on our roads has brought about a demand for auto insurance. It provides financial coverage against bodily harm due to collisions and theft for the owner of a car.
Vehicle Insurance Market Trend
Segmentation Analysis of the Vehicle Insurance Market
Coverage Insights
As regards proportion of coverage, the auto insurance market worldwide in 2022 was dominated by third party liability. Perhaps its best characteristic is the fact that this type of coverage insures against any damage, harm or death to a third party. Third party liability insurance covers both the legal and financial problems.. Another key factor making third party liability coverage insurance an inescapable necessity is the high rate of possibility that auto accidents will cause damage to third parties.
Nonetheless, over the forecast period it is expected that this comprehensive coverage category will grow at the fastest rate. Damage to customers 'vehicles, in addition to third parties is also covered by the comprehensive policy. This is one of the big advantages about comprehensive insurance over third-party coverage, which drives world demand for it.
Application Insights
According to her application, respectively in 2022 the international vehicle insurance market was dominated by personal automobiles. The enormous private-vehicle population of the world has made auto insurance necessary. Easy financing and EMI options are making personal vehicles more affordable, further driving demand for auto insurance. In the years to come, rapid growth of electric vehicles is expected to play a significant role in determining the momentum of global auto insurance.
During the projection period, the commercial segment is estimated to increase at the fastest pace. Because of the popularity of online taxi services, car rental companies and electric public transportation vehicles growing by leaps and bounds, commercial automobile market has been expanding. What is more, commercial vehicles are required in growing numbers as industrialization advances rapidly and economic activities proliferate. Therefore, the market for motor insurance is expected to increase over the forecast period.
Regional Analysis of the Vehicle Insurance Market
As of 2022, North America accounted for the largest market share worldwide in auto insurance. The existence of several large insurance companies, increased consumer understandings of the benefits of auto insurance, high personal income and growing demand for cars (especially from rural families), as well as expansion in suburban middle-class family affordability--these five factors are transforming North America's vehicle insurance industry. Experts believe that in the years to come, as consumers realize their advantages over ordinary cars, demand for electric vehicles will climb steeply throughout North America. The need for auto insurance would rise sharply at the same time. The insurance industry here is very highly developed in the United States and Canada. As more and more consumers go digital to buy or renew their polices, North America's auto insurance sales are on the rise. Moreover, in the projected age the technical developments and achievements of insurance firms will greatly influence automobile insurance.
Recent Developments
Top Key Players
| Report Components | Details |
|---|---|
| Base Year | 2022 |
| Forecast Period | 2023-2030 |
| Quantitative Units | Revenue in US $ |
| Segments Covered | By Coverage: Third Party Liability, Comprehensive By Application: Personal Vehicle, Commercial Vehicle By Distribution Channel: Insurance Agents/Brokers, Direct Response, Banks, Others By Vehicle Type: New Vehicles, Used Vehicle |
| Countries Covered | U.S. and Canada in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the APAC, Others include Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA), Brazil, Argentina, Mexico, and Rest of South America as part of South America |
| Market Players Covered | PEOPLE’S INSURANCE COMPANY OF CHINA, ALLSTATE INSURANCE COMPANY, CHINA PACIFIC INSURANCE CO., ALLIANZ, STATE FARM MUTUAL, TOKIO MARINE GROUP, AUTOMOBILE INSURANCE, GEICO, PING AN INSURANCE (GROUP) COMPANY OF CHINA, LTD., ADMIRAL GROUP PLC, BERKSHIRE HATHAWAY INC. |
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