Market Size of India Car Insurance Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.37 Billion |
| Market Size (2029) | USD 4.62 Billion |
| CAGR (2024 - 2029) | 6.56 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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India Car Insurance Market Analysis
The India Car Insurance Market size in terms of direct written premiums value is expected to grow from USD 3.37 billion in 2024 to USD 4.62 billion by 2029, at a CAGR of 6.56% during the forecast period (2024-2029).
The sales volume of cars in India has continuously increased over the years. As per the Motor Vehicle Act, vehicles operating in Indian public spaces must have compulsory motor insurance coverage. this is leading to a rising car insurance business with rising sales of cars in India. As the demand for protection coverage by car owners is increasing car insurance providers are coming up with a wide range of insurance products consisting of personal injury insurance, third-party insurance, and comprehensive car insurance policy coverage. Small cars, SUVs are among the passenger car segment in India with the highest sales making them an essential segment of the car insurance market.
General insurance companies exist as insurance providers offering car insurance products in India. Participation of private insurers in the car insurance business is increasing its share with a declining share of public insurance companies. A large segment of car owners in India are located in urban centers of Delhi, Bengaluru, Chennai, and Mumbai leading to the continuous expansion of car insurance provider branches in these centres and raising the car insurance premium generated through them.
India is observing an increasing share of the population purchasing online insurance policies from Online aggregators, insurance company websites, and other online modes, resulting in an increasing number of car owners preferring to purchase, renew, and claim their car insurance through online channels. To reduce the asymmetric information and moral hazard existing in the Indian car insurance market insurance providers are launching usage-based car insurance with telematics for calculating the insurance premium based on data generated from the vehicle. These innovations are still at a nascent stage for the Indian car insurance market with existing concerns of multiple drivers, privacy and price consciousness in the Indian insurance market.
