Car Insurance Market Size

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.