Motor Insurance Market Size, Share and Trends Research Report 2030

Name: Motor Insurance Market Size, Share and Trends Research Report 2030
Creator: Mordor Intelligence
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Global Motor Insurance Market Size and Share

Market Overview

Study Period	2019 - 2030
Market Size (2025)	USD 2.13 Trillion
Market Size (2030)	USD 2.95 Trillion
Growth Rate (2025 - 2030)	6.73% CAGR
Fastest Growing Market	Asia Pacific
Largest Market	North America
Market Concentration	Medium
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Global Motor Insurance Market (2025 - 2030) — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Global Motor Insurance Market Analysis by Mordor Intelligence

The global motor insurance market stands at USD 2.13 trillion in 2025 and is projected to reach USD 2.95 trillion by 2030, expanding at a 6.73% CAGR. Robust premium growth reflects rising vehicle ownership, accelerating digital distribution, and sustained regulatory enforcement in every major region. Third-party liability policies retain a 40.5% share because basic coverage remains compulsory in more than 150 jurisdictions. Yet comprehensive policy demand is rising quickly as drivers look for broader protection against weather events, theft, and sophisticated in-vehicle electronics. Insurer profitability is improving where AI automates claims triage and fraud screening, trimming loss-adjustment expense, and supporting sharper pricing. Competitive intensity is heightening as embedded offers from automotive OEMs, and insurtechs reduce friction at the point of sale, compelling incumbents to upgrade telematics capabilities and customer engagement.

Key Report Takeaways

• By policy type, third-party liability led to 40.5% of the global motor insurance market share in 2024, while comprehensive coverage is advancing at an 11.8% CAGR through 2030.

• By distribution channel, the agent/broker model held a 47.4% share of the global motor insurance market size in 2024; direct response and digital platforms are expanding at a 12.6% CAGR to 2030.

• By vehicle type, passenger cars dominated 72.3% of the global motor insurance market in 2024; light commercial vehicles are forecast to grow at an 8.3% CAGR on the back of e-commerce logistics demand.

• By geography, North America commanded 34.1% of global premiums in 2024, but Asia-Pacific is set to register the fastest 10.4% CAGR through 2030.

Global Motor Insurance Market Trends and Insights

Drivers Impact Analysis

Driver	( ~ ) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Telematics-driven usage-based insurance growth in Asia-Pacific	+1.2%	Asia-Pacific core, spill-over global	Medium term (2-4 years)
OEM-embedded insurance at vehicle point-of-sale	+0.8%	North America & Europe, expanding Asia-Pacific	Short term (≤ 2 years)
Strict third-party liability enforcement in emerging African economies	+0.6%	Africa & Latin America	Long term (≥ 4 years)
Booming e-commerce fleets in South America	+0.7%	South America & Asia-Pacific	Medium term (2-4 years)
Rising electric-vehicle (EV) penetration and need for battery cover	+0.9%	Europe & North America	Medium term (2-4 years)
AI-enabled claims automation cutting loss-adjustment expenses	+0.5%	Global	Short term (≤ 2 years)

Source: Mordor Intelligence

Shift toward Usage-Based Insurance Driven by Telematics Adoption in Asia-Pacific

Smartphone-enabled telematics has reduced hardware costs and helped insurers scale usage-based propositions across China, Singapore, India, and Australia. COVID-19 spurred personal vehicle reliance, while regulators in China and Singapore endorsed data-sharing frameworks that cement confidence in pay-how-you-drive models. As a result, Asia-Pacific is forecast to host more than half of global UBI subscribers by 2025, creating fresh underwriting capacity and lowering accident frequency for engaged drivers.^{[1]Swiss Re Group, “Usage‐Based Insurance to Dominate APAC,” swissre.com} Insurers reply by deploying self-service mobile dashboards that let users monitor driving scores, redeem rewards, and initiate claims—all of which drive retention and tailored pricing.

OEM-Embedded Insurance Partnerships Accelerating Policy Uptake in North America

U.S. car buyers increasingly expect seamless protection bundled inside the vehicle-purchase journey, with 60% stating a preference for connected services that include insurance. Partnerships such as Rivian–Nationwide, Toyota–Farmers, and Root–Hyundai integrate policy issuance into dealership or online checkout flows, shortening decision cycles and lifting bind rates.^{[2]Carrier Management, “Consumers Want Connected-Car Insurance,” carriermgmt.com} Analysts estimate that 20% of personal-auto premiums could be sold as embedded cover by 2030, eating into agent commissions and forcing incumbents to refine cross-sell strategies as EV technology shifts liability toward manufacturers.

Mandatory Third-Party Liability Enforcement Intensifying in Emerging African Markets

Sub-Saharan regulators are tightening proof-of-insurance checkpoints and digitizing police verification systems. Kenya’s Insurance (Motor Vehicle Third-Party Risks) (Digital Certification) Regulations mandate QR-coded e-certificates, while Nigeria expanded fines for uninsured motorists in 2024. These measures unlock premium growth in economies where motor penetration remains half the global mean, and pan-African groups are scaling low-denomination, mobile-money-enabled policies to serve mass segments.

Surge in E-commerce Logistics Fueling Commercial Motor Fleet Insurance Demand in South America

Latin America’s online shopping boom is spurring rapid fleet expansion among last-mile operators. Premium volume for commercial vans and light trucks has accelerated since late 2023, with Brazil, Chile, and Argentina posting the strongest exposure growth. Specialty insurers now provide usage-based fleet products, real-time driver coaching, and cargo-temperature guarantees to meet retailer service-level agreements.

Restraints Impact Analysis

Restraint	( ~ ) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Social-inflation jury awards pressuring U.S. auto liability margins	-1.8%	North America	Short term (≤ 2 years)
Parts-and-labor inflation raising claim severity	-1.1%	Europe & North America	Medium term (2-4 years)
Data-privacy laws limiting telematics usage	-0.7%	Europe & North America	Long term (≥ 4 years)
ADAS-driven frequency drops eroding premium pools	-0.9%	Developed markets	Medium term (2-4 years)

Source: Mordor Intelligence

Profitability Squeezed by Social Inflation & Nuclear Jury Awards in U.S. Auto Liability

In 2023, jury awards surpassing USD 10 million more than doubled the median payout, elevating it to a striking USD 44 million. This surge underscores the mounting financial repercussions of litigation on corporations. At the same time, plaintiff attorneys are leveraging the public's increasing skepticism towards large corporations to secure these inflated settlements, amplifying the financial strain on defendants.^{[3]Insurance Business, “Nuclear Jury Awards Double in Three Years,” insurancebusinessmag.com} As claims grow in severity, liability carriers have responded by hiking their rates. Yet, these premium increases have spurred consumers to hunt for better deals and have contributed to a rise in uninsured driving, exerting pressure on growth and presenting challenges for the insurance market.

Heightened Parts & Labor Inflation Elevating Claim Severity in Europe

In 2024, amid supply-chain frictions, OEM spare-part lists saw a surge, while repair shops reported a 4.7% wage increase. This increase in wages reflects the growing demand for skilled labor in the repair industry. Combined ratios inflated as average third-party bodily injury payouts climbed by 8%, highlighting the rising costs associated with insurance claims. The frequency of total-loss claims reached 22%, driven by repair costs frequently surpassing the actual cash value of older vehicles. This trend underscores the financial challenges faced by insurers and vehicle owners alike.

Segment Analysis

By Policy Type: Comprehensive Coverage Gaining Momentum Amid Rising Risk Complexity

Comprehensive policies, which cover own damage, theft, and severe weather, are growing at an 11.8% CAGR—significantly above the overall motor insurance market. Drivers embrace wider protection as ADAS and EV components raise average repair bills, while financiers mandate broader covers on leased vehicles. Third-party liability remains foundational, underpinning 40.5% of the 2024 global premium, but its relative share will decline as discretionary add-ons proliferate.

Demand for comprehensive cover is visible in mature markets where the average claim on collision lines rose to USD 5,992 in 2022. Higher deductibles and repair-shop network steering help carriers mitigate severity, yet the motor insurance market size devoted to own damage is forecast to capture more than half of new written premiums by 2028. Regulatory reform in India, lifting liability limits, also nudges customers toward bundled packages, reinforcing momentum.

Motor Insurance — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

By Distribution Channel: Digital Platforms Disrupting Traditional Agent Dominance

Agents and brokers still authored 47.4% of global premiums in 2024 due to high-touch consultative selling, especially for fleets and high-value vehicles. However, digital direct channels now grow at 12.6% CAGR, propelled by mobile quoting engines, AI chat, and instant binding. Roughly 47.4% of shoppers used online journeys in 2024, reflecting a structural shift in search behaviors.

Bancassurance retains weight in Latin America and Southeast Asia, where banking relationships drive trust. Yet insurers are accelerating embedded tie-ups with ride-hailing apps, marketplaces, and OEM digital showrooms. These partnerships may account for 20% of personal-auto premiums by 2030, shrinking acquisition costs and reallocating motor insurance market share toward tech-savvy carriers.

By Vehicle Type: Light Commercial Vehicles Accelerating on E-commerce Boom

Passenger cars supply the backbone of premium, commanding 72.3% of written cover in 2024. Last-mile growth nevertheless positions light commercial vehicles (LCVs) as the fastest climber at an 8.3% CAGR, as retailers pledge same-day delivery. Fleets seek telematics-based driver coaching, proactive maintenance alerts, and aggregated deductibles to control costs.

Commercial auto incurred combined ratios exceeded 100% in 11 of the past 12 years, urging carriers to adopt algorithmic rating and granular usage scores. Batteries and drivetrain coverage for electric vans extend risk complexity, yet LCV premium still presents attractive margins within the motor insurance market.

By Vehicle Age: Used Vehicles Outpacing New in Premium Growth

Vehicles older than five years generate robust growth, expanding at 9.5% CAGR, outpacing new-car insured values. Economic strain and supply-chain limits pushed buyers toward second-hand cars, prompting insurers to craft tiered plans catering to affordability without sacrificing essential protection. Nearly 45% of repairable claims originate from cars older than seven, explaining a record 22% total-loss frequency.

Pricing for aged cars hinges on parts scarcity and inflated labor, yet modular add-ons such as mechanical breakdown protection help secure retention. The collector-car niche within the motor insurance industry sees younger enthusiasts demanding flexible mileage caps and agreed-value upgrades, enhancing diversity within the motor insurance market.

Geography Analysis

North America generated 34.1% of the global premium in 2024, anchored by high per-capita vehicle ownership and strict compulsory insurance statutes. The U.S. segment endured USD 53 billion in underwriting losses during 2022-2023, prompting 14.3% average rate hikes, the highest in 15 years. Profit recovery is expected by 2025 as carriers embed telematics, refined claims automation, and calibrated pricing to mitigate cost inflation. Market leadership remains concentrated, with the top five writers holding 60% of the premium.

Asia-Pacific delivers the fastest 10.4% CAGR through 2030. Expanding middle classes, liberalized motor-tariff regimes, and smartphone penetration fuel telematics adoption. China, Japan, and India headline scale, yet Southeast Asian growth outpace as regulators champion pay-how-you-drive and micro-duration covers. The region will likely exceed 50% of global UBI subscribers by 2025, disrupting legacy pricing pools.

Europe retains deep premium pools, particularly in Germany, the UK, and France. Insurers confront 23% inflation in motor CPI and must factor EV repair complexity and supply-chain friction into loss forecasts. UK premium volume is projected to rise from USD 23.89 billion in 2024 to USD 31.65 billion by 2030 at a 4.8% CAGR. Pan-European carriers accelerate ecosystem partnerships to ensure batteries, chargers, and software LiDAR.

Latin America posts a 3.9% real growth outlook for 2025, supported by open insurance reforms and commercial fleet expansion. Generali’s restructuring in Brazil restored profitability, underscoring the appetite for disciplined risk selection and data analytics. Open architecture may cut acquisition costs and diversify choices, enlarging the motor insurance market.

Africa shows latent upside as the enforcement of third-party liability tightens. Mobile money and digital certificates streamline premium collection, promising to narrow the protection gap. South African insurers augment liquidity buffers to weather macro volatility while capturing incremental demand from ride-sharing drivers.

Global Motor Insurance — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Competitive Landscape

Competition is tightening as telematics, AI, and embedded distribution blur traditional boundaries. In the U.S. motor insurance market, State Farm, Progressive, Geico, Allstate, and USAA jointly hold the majority of the shares, indicating moderate concentration. These incumbents pour capital into machine-learning underwriting and digital claims to preserve scale advantages.

European multiline giants Allianz and Zurich invested in EV-specific products and connected-car ecosystems, while AXA piloted parametric battery degradation coverage for 2025. Asian heavyweights Ping An and CPIC leverage vast agent networks fused with super-app functionality to upsell roadside-assist micro-products. Insurtech challengers such as Root and Lemonade target younger demographics with usage-linked premiums and near-instant settlement, pressuring traditional acquisition economics.

Strategic partnerships proliferate among OEMs, embed coverage at checkout, ride-hailing apps broker per-trip micro-policies, and reinsurers back parametric cyber components. Carriers that own granular telematics data, advanced analytics pipelines, and API-ready distribution will consolidate motor insurance market positioning over the decade.

Global Motor Insurance Industry Leaders

Allianz SE
Ping An Insurance
State Farm Mutual Automobile Insurance Co.
AXA SA
Zurich Insurance Group
*Disclaimer: Major Players sorted in no particular order

Market Concentration — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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Recent Industry Developments

May 2025: Allianz SE expanded its AI-driven Insurance Copilot claims platform to 15 additional markets after reductions of 40% in cycle time and 25% gains in customer satisfaction.
April 2025: Root Insurance partnered with Hyundai Capital America to embed policies at the point of financing, reversing prior losses with USD 30.9 million in 2024 net income.
March 2025: AXA unveiled dedicated EV insurance for Europe, covering battery, charger, and software vulnerabilities.
February 2025: Ping An introduced a telematics-based motor policy that prices in real-time and attracted 2 million users in its first month.
December 2024: Progressive launched specialized coverage for e-commerce delivery fleets with integrated telematics.
October 2024: Tokio Marine acquired an AI fleet-risk insurtech to enhance underwriting accuracy in North America.

Table of Contents for Global Motor Insurance Industry Report

1. Introduction

1.1 Study Assumptions & Market Definition
1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

4.1 Market Overview
4.2 Market Drivers
- 4.2.1 Shift toward Usage-Based Insurance Driven by Telematics Adoption in Asia-Pacific
- 4.2.2 OEM-Embedded Insurance Partnerships Accelerating Policy Uptake in North America
- 4.2.3 Mandatory Third-Party Liability Enforcement Intensifying in Emerging African Markets
- 4.2.4 Surge in E-commerce Logistics Fueling Commercial Motor Fleet Insurance Demand in South America
- 4.2.5 Rising EV Penetration Increasing Need for Specialized Battery & Software Coverage in Europe
- 4.2.6 AI-Powered Claims Automation Reducing Loss-Adjustment Expenses Globally
4.3 Market Restraints
- 4.3.1 Profitability Squeezed by Social Inflation & Nuclear Jury Awards in U.S. Auto Liability
- 4.3.2 Heightened Parts & Labor Inflation Elevating Claim Severity in Europe
- 4.3.3 Data-Privacy Regulations Restricting Telematics Data Utilization
- 4.3.4 Growing ADAS Penetration Reducing Claim Frequency & Premium Pool
4.4 Value / Supply-Chain Analysis
4.5 Regulatory Outlook
4.6 Technological Outlook
4.7 Porter's Five Forces
- 4.7.1 Threat of New Entrants
- 4.7.2 Bargaining Power of Buyers
- 4.7.3 Bargaining Power of Suppliers
- 4.7.4 Threat of Substitutes
- 4.7.5 Intensity of Competitive Rivalry

5. Market Size & Growth Forecasts (Value)

5.1 By Policy Type
- 5.1.1 Third-Party Liability Insurance
- 5.1.2 Comprehensive Coverage
- 5.1.3 Collision Coverage
- 5.1.4 Personal Injury Protection
5.2 By Distribution Channel
- 5.2.1 Insurance Agents / Brokers
- 5.2.2 Direct Response / Digital
- 5.2.3 Bancassurance
- 5.2.4 Embedded / Platform Partnerships
- 5.2.5 Aggregators & Comparison Portals
5.3 By Vehicle Type
- 5.3.1 Passenger Cars
- 5.3.2 Two-Wheelers
- 5.3.3 Light Commercial Vehicles
- 5.3.4 Medium & Heavy Commercial Vehicles
5.4 By Vehicle Age
- 5.4.1 New Vehicles (< 5 Years)
- 5.4.2 Used Vehicles (> 5 Years)
5.5 By Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Mexico
- 5.5.2 South America
- 5.5.2.1 Brazil
- 5.5.2.2 Peru
- 5.5.2.3 Chile
- 5.5.2.4 Argentina
- 5.5.2.5 Rest of South America
- 5.5.3 Europe
- 5.5.3.1 Germany
- 5.5.3.2 United Kingdom
- 5.5.3.3 France
- 5.5.3.4 Italy
- 5.5.3.5 Spain
- 5.5.3.6 BENELUX (Belgium, Netherlands, and Luxembourg)
- 5.5.3.7 Nordics (Sweden, Norway, Denmark, Finland)
- 5.5.3.8 Rest of Europe
- 5.5.4 Asia-Pacific
- 5.5.4.1 China
- 5.5.4.2 India
- 5.5.4.3 Japan
- 5.5.4.4 South Korea
- 5.5.4.5 Australia
- 5.5.4.6 South East Asia
- 5.5.4.7 Indonesia
- 5.5.4.8 Rest of Asia-Pacific
- 5.5.5 Middle East & Africa
- 5.5.5.1 United Arab Emirates
- 5.5.5.2 Saudi Arabia
- 5.5.5.3 South Africa
- 5.5.5.4 Nigeria
- 5.5.5.5 Rest of Middle East

6. Competitive Landscape

6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)
- 6.4.1 Allianz SE
- 6.4.2 Ping An Insurance
- 6.4.3 State Farm Mutual Automobile Insurance Co.
- 6.4.4 AXA SA
- 6.4.5 Zurich Insurance Group
- 6.4.6 Progressive Corporation
- 6.4.7 Berkshire Hathaway Inc. (GEICO)
- 6.4.8 Tokio Marine Holdings Inc.
- 6.4.9 China Pacific Insurance (CPIC)
- 6.4.10 PICC Property & Casualty Co. Ltd.
- 6.4.11 Assicurazioni Generali S.p.A.
- 6.4.12 Liberty Mutual Insurance
- 6.4.13 Aviva plc
- 6.4.14 Sompo Holdings
- 6.4.15 Direct Line Group plc
- 6.4.16 Admiral Group plc
- 6.4.17 Bajaj Allianz General Insurance
- 6.4.18 ICICI Lombard General Insurance
- 6.4.19 Intact Financial Corporation
- 6.4.20 QBE Insurance Group
- 6.4.21 MAPFRE SA

7. Market Opportunities & Future Outlook

7.1 White-Space & Unmet-Need Assessment

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Global Motor Insurance Market Report Scope

Motor insurance denotes the insurance for cars, trucks, motorcycles, or any other road vehicles. which, provides financial protection against physical damage or injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. The global motor insurance market can be segmented by Users; (Personal Motor Insurance and Commercial Motor Insurance), By Policy type;(Third Party Motor Insurance, Third Party, Fire & Theft Motor Insurance and Comprehensive Motor Insurance), and By Geography, Europe;( Germany, UK, France, Switzerland, Rest of Europe), North America;( USA, Canada), South America;( Brazil, Argentina), APAC;( China, India, Japan, South Korea, Indonesia, Rest of APAC), MENA;( UAE Saudi Arabia, Lebanon, Rest of North Africa). The report also offers a complete background analysis of the Global Motor Insurance market, including the analysis and forecast of market size, market segments, industry trends, major players, and growth drivers.

By Policy Type	Third-Party Liability Insurance
	Comprehensive Coverage
	Collision Coverage
	Personal Injury Protection
By Distribution Channel	Insurance Agents / Brokers
	Direct Response / Digital
	Bancassurance
	Embedded / Platform Partnerships
	Aggregators & Comparison Portals
By Vehicle Type	Passenger Cars
	Two-Wheelers
	Light Commercial Vehicles
	Medium & Heavy Commercial Vehicles
By Vehicle Age	New Vehicles (< 5 Years)
	Used Vehicles (> 5 Years)

By Geography	North America	United States
		Canada
		Mexico

	South America	Brazil
		Peru
		Chile
		Argentina
		Rest of South America

	Europe	Germany
		United Kingdom
		France
		Italy
		Spain
		BENELUX (Belgium, Netherlands, and Luxembourg)
		Nordics (Sweden, Norway, Denmark, Finland)
		Rest of Europe

	Asia-Pacific	China
		India
		Japan
		South Korea
		Australia
		South East Asia
		Indonesia
		Rest of Asia-Pacific

	Middle East & Africa	United Arab Emirates
		Saudi Arabia
		South Africa
		Nigeria
		Rest of Middle East

By Policy Type

Third-Party Liability Insurance

Comprehensive Coverage

Collision Coverage

Personal Injury Protection

By Distribution Channel

Insurance Agents / Brokers

Direct Response / Digital

Bancassurance

Embedded / Platform Partnerships

Aggregators & Comparison Portals

By Vehicle Type

Passenger Cars

Two-Wheelers

Light Commercial Vehicles

Medium & Heavy Commercial Vehicles

By Vehicle Age

New Vehicles (< 5 Years)

Used Vehicles (> 5 Years)

By Geography

North America	United States
	Canada
	Mexico
South America	Brazil
	Peru
	Chile
	Argentina
	Rest of South America
Europe	Germany
	United Kingdom
	France
	Italy
	Spain
	BENELUX (Belgium, Netherlands, and Luxembourg)
	Nordics (Sweden, Norway, Denmark, Finland)
	Rest of Europe
Asia-Pacific	China
	India
	Japan
	South Korea
	Australia
	South East Asia
	Indonesia
	Rest of Asia-Pacific
Middle East & Africa	United Arab Emirates
	Saudi Arabia
	South Africa
	Nigeria
	Rest of Middle East

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Key Questions Answered in the Report

What is the current size of the motor insurance market?

The global motor insurance market is worth USD 2.13 trillion in 2025 and is forecast to reach USD 2.95 trillion by 2030 at a 6.7% CAGR.

Which policy type is growing fastest?

Comprehensive coverage leads growth with an 11.8% CAGR as drivers seek wider protection for high-tech vehicles and climate-related damage.

Why are light commercial vehicles attracting more premium?

E-commerce logistics demands last-mile delivery, pushing light commercial vehicle insurance to grow at an 8.3% CAGR through 2030.

How is AI changing motor insurance claims?

AI-powered automation is cutting claim cycle times by up to 90% and reaching fraud-detection accuracy above 95%, lowering costs and improving customer experience.

Which region will grow fastest through 2030?

Asia-Pacific is projected to post a 10.4% CAGR owing to rising car ownership, supportive regulation, and rapid adoption of telematics-based products.