Motor Insurance Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type, By User, By Policy Type, By Provider (Insurance Companies, Insurance Agents/Brokers, Others ), By Region & Competition, 2021-2031F

Description

The Global Motor Insurance Market to expand from USD 982.67 Billion in 2025 to USD 1608.52 Billion by 2031 at a CAGR of 8.56%. The Global Motor Insurance Market serves as a crucial financial safety net for vehicle owners, covering losses from accidents, theft, and natural disasters, alongside third-party liabilities. The sector's growth is primarily underpinned by stringent government regulations requiring mandatory liability coverage, ensuring steady demand across most regions. Furthermore, the persistent rise in global vehicle ownership and the continued development of the automotive industry significantly increase the volume of insurable assets, driving consistent market progress independent of technological advancements.

Market Overview
Forecast Period	2027-2031
Market Size 2025	USD 982.67 Billion
Market Size 2031	USD 1608.52 Billion
CAGR 2026-2031	8.56%
Fastest Growing Segment	New Vehicles
Largest Market	Europe

However, the industry faces substantial hurdles, as highlighted by the Association of British Insurers, which reported a record £11.7 billion in claim payouts in 2024 due to escalating theft rates and repair expenses. This data points to a major challenge impeding growth: the increasing severity of claims resulting from inflationary pressures and the high cost of repairing technologically complex vehicles. These rising expenses threaten underwriting margins and force insurers to adjust premiums, which may reduce affordability for price-sensitive consumers.

Market Driver

The rapid adoption of electric and hybrid vehicles is a transformative force reshaping the industry by modifying risk profiles and claims structures. As the push for sustainable mobility grows, the influx of these advanced vehicles compels insurers to adjust underwriting models to address higher repair severities. Electric vehicles (EVs) often require specialized labor and components, resulting in repair costs that exceed those of traditional combustion engines. Data from CCC Intelligent Solutions in April 2025 indicated that EV repair labor rates were approximately 30% higher in 2024, a gap that squeezes margins and necessitates premium hikes. This increase in asset value and repair expense has fueled broader market expansion, with Allianz Research noting a 7.7% rise in global property and casualty premiums in 2024, partly due to the evolving needs of this modern fleet.

Concurrent with vehicle evolution, the integration of telematics and usage-based insurance (UBI) is revolutionizing the market by transitioning pricing from static indicators to real-time behavioral data. Insurers utilize these tools to offer personalized rates that reward safe driving, attracting lower-risk policyholders and decreasing claim frequency. This technology acts as a vital buffer against rising costs by actively promoting safer road habits. For example, Cambridge Mobile Telematics reported in April 2025 that distracted driving incidents dropped by 8.6% in 2024, a decline attributed to the incentives provided by telematics programs. This data-centric approach enhances customer engagement and equips insurers with detailed insights to better manage risk in a fluctuating economy.

Market Challenge

A primary obstacle hindering the Global Motor Insurance Market is the intensifying severity of claims, driven by inflation and the steep costs associated with repairing high-tech vehicles. As modern cars increasingly feature complex sensors and advanced driver-assistance systems, the expense to repair even minor damage has surged disproportionately. This rapid escalation in costs erodes underwriting profitability, forcing insurers to absorb payouts that frequently outpace premium income. To preserve financial stability, carriers are often compelled to raise rates significantly, which diminishes affordability for the average consumer and limits the expansion of the addressable market.

According to the Insurance Information Institute, personal auto claim severity accelerated drastically in 2025, with the compound annual growth rate nearly tripling to 10.9 percent between 2019 and 2024. This statistic underscores the profound financial strain on the industry, where the rising cost per claim exceeds the pace of standard rate adjustments. Such economic pressure forces insurers to implement pricing corrections that may lead price-conscious policyholders to reduce coverage limits or decline optional policies, thereby dampening the sector's overall growth trajectory.

Market Trends

The deployment of Artificial Intelligence for automated claims processing is fundamentally changing the operational landscape by substituting manual reviews with algorithmic decision-making. Insurers are leveraging computer vision and machine learning to evaluate damage via images, verify coverage, and expedite payments, significantly reducing administrative costs and settlement times. This shift improves customer satisfaction through speed and enhances underwriting accuracy by identifying patterns often missed by human review. For instance, a March 2025 TradingView article noted that Lemonade achieved a 12 percentage point year-over-year improvement in its Q4 2024 gross loss ratio, a result largely attributed to the efficiency of its AI-driven systems.

Simultaneously, the rise of embedded insurance models through automotive OEMs is disrupting traditional distribution channels by integrating coverage directly into the vehicle purchase process. Manufacturers are using their access to vehicle data and point-of-sale interactions to offer seamless policy bundles that bypass intermediaries and simplify buying for consumers. This model meets the modern driver's demand for convenience, transforming dealerships and digital platforms into key sales avenues. A Dig-In article from January 2025 revealed that 84% of Millennial and Gen Z consumers prefer having insurance options included with their vehicle purchase, indicating a significant generational shift toward these integrated solutions.

Key Market Players

Allianz SE
Assicurazioni Generali
Bajaj Finserv
PICC Property & Casualty Co Ltd
AXA SA
GEICO
AllState
Ping An Insurance
State Farm
Zurich AG

Report Scope

In this report, the Global Motor Insurance Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Motor Insurance Market, By Vehicle Type

New Vehicles
Old Vehicles

Motor Insurance Market, By User

Personal Motor Insurance
Commercial Motor Insurance

Motor Insurance Market, By Policy Type

Third Party Motor Insurance
Fire & Theft Motor Insurance
Comprehensive Motor Insurance

Motor Insurance Market, By Provider

Insurance Companies
Insurance Agents/Brokers
Others (Insurtech Companies, etc.)

Motor Insurance Market, By Region

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Motor Insurance Market.

Available Customizations:

Global Motor Insurance Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Motor Insurance Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Vehicle Type (New Vehicles, Old Vehicles)
- 5.2.2. By User (Personal Motor Insurance, Commercial Motor Insurance)
- 5.2.3. By Policy Type (Third Party Motor Insurance, Fire & Theft Motor Insurance, Comprehensive Motor Insurance)
- 5.2.4. By Provider (Insurance Companies, Insurance Agents/Brokers, Others (Insurtech Companies, etc.))
- 5.2.5. By Region
- 5.2.6. By Company (2025)
5.3. Market Map

6. North America Motor Insurance Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Vehicle Type
- 6.2.2. By User
- 6.2.3. By Policy Type
- 6.2.4. By Provider
- 6.2.5. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Motor Insurance Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Vehicle Type
    - 6.3.1.2.2. By User
    - 6.3.1.2.3. By Policy Type
    - 6.3.1.2.4. By Provider
- 6.3.2. Canada Motor Insurance Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Vehicle Type
    - 6.3.2.2.2. By User
    - 6.3.2.2.3. By Policy Type
    - 6.3.2.2.4. By Provider
- 6.3.3. Mexico Motor Insurance Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Vehicle Type
    - 6.3.3.2.2. By User
    - 6.3.3.2.3. By Policy Type
    - 6.3.3.2.4. By Provider

7. Europe Motor Insurance Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Vehicle Type
- 7.2.2. By User
- 7.2.3. By Policy Type
- 7.2.4. By Provider
- 7.2.5. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Motor Insurance Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Vehicle Type
    - 7.3.1.2.2. By User
    - 7.3.1.2.3. By Policy Type
    - 7.3.1.2.4. By Provider
- 7.3.2. France Motor Insurance Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Vehicle Type
    - 7.3.2.2.2. By User
    - 7.3.2.2.3. By Policy Type
    - 7.3.2.2.4. By Provider
- 7.3.3. United Kingdom Motor Insurance Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Vehicle Type
    - 7.3.3.2.2. By User
    - 7.3.3.2.3. By Policy Type
    - 7.3.3.2.4. By Provider
- 7.3.4. Italy Motor Insurance Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Vehicle Type
    - 7.3.4.2.2. By User
    - 7.3.4.2.3. By Policy Type
    - 7.3.4.2.4. By Provider
- 7.3.5. Spain Motor Insurance Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Vehicle Type
    - 7.3.5.2.2. By User
    - 7.3.5.2.3. By Policy Type
    - 7.3.5.2.4. By Provider

8. Asia Pacific Motor Insurance Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Vehicle Type
- 8.2.2. By User
- 8.2.3. By Policy Type
- 8.2.4. By Provider
- 8.2.5. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Motor Insurance Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Vehicle Type
    - 8.3.1.2.2. By User
    - 8.3.1.2.3. By Policy Type
    - 8.3.1.2.4. By Provider
- 8.3.2. India Motor Insurance Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Vehicle Type
    - 8.3.2.2.2. By User
    - 8.3.2.2.3. By Policy Type
    - 8.3.2.2.4. By Provider
- 8.3.3. Japan Motor Insurance Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Vehicle Type
    - 8.3.3.2.2. By User
    - 8.3.3.2.3. By Policy Type
    - 8.3.3.2.4. By Provider
- 8.3.4. South Korea Motor Insurance Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Vehicle Type
    - 8.3.4.2.2. By User
    - 8.3.4.2.3. By Policy Type
    - 8.3.4.2.4. By Provider
- 8.3.5. Australia Motor Insurance Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Vehicle Type
    - 8.3.5.2.2. By User
    - 8.3.5.2.3. By Policy Type
    - 8.3.5.2.4. By Provider

9. Middle East & Africa Motor Insurance Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Vehicle Type
- 9.2.2. By User
- 9.2.3. By Policy Type
- 9.2.4. By Provider
- 9.2.5. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Motor Insurance Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Vehicle Type
    - 9.3.1.2.2. By User
    - 9.3.1.2.3. By Policy Type
    - 9.3.1.2.4. By Provider
- 9.3.2. UAE Motor Insurance Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Vehicle Type
    - 9.3.2.2.2. By User
    - 9.3.2.2.3. By Policy Type
    - 9.3.2.2.4. By Provider
- 9.3.3. South Africa Motor Insurance Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Vehicle Type
    - 9.3.3.2.2. By User
    - 9.3.3.2.3. By Policy Type
    - 9.3.3.2.4. By Provider

10. South America Motor Insurance Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Vehicle Type
- 10.2.2. By User
- 10.2.3. By Policy Type
- 10.2.4. By Provider
- 10.2.5. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Motor Insurance Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Vehicle Type
    - 10.3.1.2.2. By User
    - 10.3.1.2.3. By Policy Type
    - 10.3.1.2.4. By Provider
- 10.3.2. Colombia Motor Insurance Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Vehicle Type
    - 10.3.2.2.2. By User
    - 10.3.2.2.3. By Policy Type
    - 10.3.2.2.4. By Provider
- 10.3.3. Argentina Motor Insurance Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Vehicle Type
    - 10.3.3.2.2. By User
    - 10.3.3.2.3. By Policy Type
    - 10.3.3.2.4. By Provider

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global Motor Insurance Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Allianz SE
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. Assicurazioni Generali
15.3. Bajaj Finserv
15.4. PICC Property & Casualty Co Ltd
15.5. AXA SA
15.6. GEICO
15.7. AllState
15.8. Ping An Insurance
15.9. State Farm
15.10. Zurich AG