Introduction
According to a 2025 report on the Motor Insurance Market by Mordor Intelligence, the market is projected to grow from USD 2.13 trillion in 2025 to USD 2.95 trillion by 2030, at a CAGR of 6.73% during the forecast period.
The motor insurance market play a crucial role in protecting vehicle owners against financial losses arising from accidents, theft, or damage. It includes various types of coverage such as third-party liability, which is mandatory in most countries, and comprehensive insurance that covers own damages and additional risks. Driven by rising vehicle ownership, stricter regulatory mandates, and increasing road traffic globally, the market continues to grow steadily.
Key Market Trends
Growing Adoption of Usage-Based Insurance (UBI)
One of the notable trends in the motor insurance market is the expanding adoption of usage-based insurance models. Insurers are increasingly offering telematics-driven policies that calculate premiums based on real-time driving behavior, distance covered, and risk exposure rather than fixed annual premiums.
Rapid Digitalization of Distribution Channels
Insurers are focusing on digital distribution channels to enhance customer acquisition and retention. Companies are integrating online sales platforms, AI-based customer support, and mobile applications to simplify policy purchase, claim processing, and renewals.
Increased Demand for Comprehensive Policies
With rising vehicle prices and repair costs globally, consumers are increasingly opting for comprehensive motor insurance policies over third-party covers. Comprehensive plans offer broader protection, including own damage, theft, fire, and natural disasters, making them preferable for high-value personal vehicles and fleet operators aiming to mitigate repair cost risks.
Market Segmentation
By Type
Third-Party Liability Insurance Third-party liability insurance remains a mandatory requirement in most countries worldwide. This segment covers damage or injuries caused to other people or property by the insured vehicle.
Comprehensive Insurance Comprehensive insurance covers both third-party liabilities and own damages to the insured vehicle. This type of policy provides broader protection, including coverage against theft, vandalism, fire, natural disasters, and accidental damages.
By Distribution Channel
Agents and Brokers Traditional agents and brokers continue to hold a significant share in the distribution of motor insurance. Their personalized approach helps consumers understand policy terms, compare coverage options, and manage renewals efficiently.
Direct Response Direct response channels, including company-owned online platforms, call centres, and mobile apps, are gaining traction in the motor insurance market. These channels enable insurers to reduce operational costs, reach urban and tech-savvy consumers directly, and simplify the policy of purchase and claims process. The growing preference for seamless digital interactions is expected to strengthen this segment further.
By Vehicle Type
Passenger Vehicles The passenger vehicles segment includes personal cars and two-wheelers insured by individual consumers. It dominates market revenue due to the large and rising ownership of private vehicles globally
Commercial Vehicles This segment comprises insurance for trucks, buses, vans, and fleet vehicles owned by businesses. Coverage typically includes third-party liability, goods-in-transit, and comprehensive policies to ensure operational continuity and compliance with road safety regulations.
By Geography
North America In North America, the motor insurance market is mature with widespread vehicle ownership and regulatory compliance. Insurers are focusing on telematics-based usage policies and enhanced digital services to improve customer retention and operational efficiency.
Europe Europe maintains stable market growth due to strict regulatory mandates for third-party insurance and strong consumer preference for comprehensive coverage. Companies are investing in direct response channels and value-added services to differentiate offerings.
Market Major Players
Allianz SE A leading global insurer, Allianz offers a wide range of motor insurance products for private and commercial vehicles. It features in the top five global carriers in this segment
Ping An Insurance (Group) Co. of China Ltd One of the largest insurers in Asia, Ping An delivers extensive motor coverage through tech-enhanced services and strong regional reach
State Farm Mutual Automobile Insurance Co. A dominant player in the U.S. market, State Farm offers a comprehensive suite of personal vehicle policies and retains one of the largest market shares
AXA SA Operating globally with significant penetration in Europe and Asia-Pacific, AXA focuses on both liability and comprehensive motor insurance
Conclusion
The motor insurance market is poised for steady growth driven by rising vehicle ownership, mandatory third-party liability regulations, and increasing consumer preference for comprehensive coverage. Insurers are focusing on expanding their digital capabilities to provide seamless policy purchases, renewals, and claims management, catering to tech-savvy customers who expect convenience and transparency
For More Information Visit: https://www.mordorintelligence.com/industry-reports/global-motor-insurance-market?utm_source=abnewswire
Industry Related Reports
India Motor Insurance Market: The India Motor Insurance Market report segments the industry into By Motor Insurance Type (Own Damage, Third Party), By Application (Private Motor Insurance, Commercial Motor Insurance), By Distribution Channel (Brokers, Individual Agents, Banks, Online, Other Distribution Channels), and By State (Tamil Nadu, Maharashtra, Karnataka, Gujarat, Uttar Pradesh, Other States).
Saudi Arabia Motor Insurance Market: The Saudi Arabian Motor Insurance Market report segments the industry by Insurance Type (Third Party Liability and Comprehensive) and Distribution Channel (Agents, Brokers, Banks, Online, and Other Distribution Channels). The report provides market sizes and forecasts in value (USD) for each of these segments.
For More Insights: https://www.mordorintelligence.com/industry-reports/saudi-arabia-motor-insurance-market?utm_source=abnewswire
United States motor insurance Market: The United States Motor Insurance Market is segmented by Coverage Type (Liability, Collision, Comprehensive, Personal Injury Protection (PIP), and others), Vehicle Type (Passenger Cars, Light Commercial Vehicles, Motorcycles, and others), Policy Type (Personal, Commercial), Distribution Channel (Agency, Direct, Bancassurance, and others), and Region. Market forecasts are provided in terms of value (USD).
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