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. |
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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.
Note: Segment shares of all individual segments available upon report purchase
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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.
Note: Segment shares of all individual segments available upon report purchase
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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.
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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
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Allianz SE
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Ping An Insurance
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State Farm Mutual Automobile Insurance Co.
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AXA SA
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Zurich Insurance Group
- *Disclaimer: Major Players sorted in no particular order
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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.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines the global motor insurance market as the total gross written premiums collected worldwide for policies that protect private and commercial road-going vehicles, passenger cars, light vans, two-wheelers and heavy trucks, against own damage and third-party liability losses. We cover policies sold directly by carriers, through agent/broker networks and emerging digital platforms, aggregating personal as well as fleet business.
Scope Exclusion: The estimate omits marine, aviation, crop or life covers and strips out reinsurance treaties placed above primary carriers.
Segmentation Overview
- 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
- North America
Detailed Research Methodology and Data Validation
Primary Research
Structured interviews with underwriting heads, broker groups, fleet managers and insurtech executives across North America, Europe, Asia-Pacific, Latin America and the Middle East let us test loss-ratio movements, price elasticity and telematics adoption, sharpening assumptions wherever public data proved thin.
Desk Research
We began by mapping regulator filings and statistical yearbooks from NAIC (United States), EIOPA (Europe) and IRDAI (India), then tied these to vehicle park and accident records issued by OICA, UN Road Safety and the Insurance Information Institute. Macro indicators, GDP per capita, fuel prices and new registration trends, were pulled from World Bank and OECD sets to normalize premiums across seventy nations. Our analysts also reviewed carrier 10-K filings and tapped D&B Hoovers and Dow Jones Factiva transcripts for commentary on rate hikes and claims inflation. A second sweep consulted customs codes on replacement parts, Questel patent feeds on telematics and national police crash datasets, adding guardrails around repair cost and usage-based pricing assumptions. This illustrative list is not exhaustive; many additional open and paid sources informed our desk phase.
Market-Sizing & Forecasting
Our model starts with a top-down reconstruction. Insured vehicle penetration is multiplied by average premium per policy for each country, then adjusted for exchange rates and inflation. Select bottom-up cross-checks, carrier premium roll-ups, channel checks and sampled average selling price by vehicle age, tighten totals before sign-off. Key variables feeding a multivariate regression blended with ARIMA smoothing include registered vehicle stock, mandated liability limits, claims cost inflation, accident frequency, new car sales and telematics policy uptake. Scenario testing gauges the impact of faster electric vehicle penetration or regulatory rate caps, and any local data voids are bridged with nearest peer ratios validated during expert calls.
Data Validation & Update Cycle
Outputs pass automated variance scans, senior analyst peer review and a follow-up expert call when anomalies persist. Reports refresh every twelve months, with interim updates triggered by major legislative or catastrophe events so clients receive the latest view.
Why Mordor's Global Motor Insurance Baseline Commands Reliability
Published estimates often diverge because research firms choose different policy scopes, premium bases and refresh cadences.
Mordor reports gross written premiums and refreshes mid-year, while some providers cite earned premiums or fold in reinsurance flows, inflating totals. Others assume rapid telematics uptake or hold currency rates static, skewing growth math.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 810.25 M | Mordor Intelligence | - |
| USD 877.75 M | Global Consultancy A | Includes reinsurance flows and ancillary assistance services |
| USD 911.64 M | Industry Research Firm B | Applies aggressive telematics penetration and fixed currency rates |
These contrasts show why decision-makers trust Mordor's disciplined scope selection, blended top-down and bottom-up validation and timely refresh to provide a transparent, repeatable baseline for strategic planning.
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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.
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