Auto Insurance Market

Auto Insurance Market Size By Coverage (Collision/Comprehensive/Other Optional Coverages and Third Party Liability Coverage), By Distribution Channel (Direct Response, Insurance Agents/Brokers, Banks, and Others), By Vehicle Age (Used Vehicles and New Vehicles), and By Application (Commercial and Personal) Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2023 to 2032

Base Year: 2022 Historical Data: 2019-21
  • Report ID: TBI-13803
  • Published Date: Nov, 2023
  • Pages: 236
  • Category: Information Technology & Semiconductors
  • Format: PDF
Buy @ $4700.00 Request Sample PDF

The global auto insurance market was valued at USD 810.0 billion in 2022, growing at a CAGR of 8.1% from 2023 to 2032. The market is expected to reach USD 1764.9 billion by 2032. Given the rising rate of traffic accidents in most of the world's nations, the vehicle insurance market has a lot of room to develop.

Market Introduction:

Auto insurance covers vehicles on the road, including cars, trucks, motorbikes, and others. Its main function is to offer financial protection against bodily harm or physical damage sustained in auto accidents, as well as against potential liability resulting from similar situations involving vehicles. In addition to financial protection against traffic collision damage, motor insurance may provide coverage against theft, weather-related or natural disaster-related damage, and damage resulting from collisions with stationary objects. The global auto insurance market is expanding due to increased accidents, strict government regulations requiring auto insurance, and a global upsurge in car sales. The auto insurance sector dominates the market for non-life insurance. Since auto vehicle insurance premiums are the most heavily collected by insurers, growth in this market segment generally plays a significant role in explaining overall trends in the non-life sector. In several nations, this business category was shown to be a major force behind advancements in the non-life divisions. Approximately 36.3% of non-life insurance premiums worldwide are contributed by auto vehicle insurance.

Auto Insurance Market Size

Get an overview of this study by requesting a free sample

Recent Development

In August 2021, AXA S.A., a major insurance provider, unveiled STeP, a new digital claims solution designed to make clients' vehicle insurance processes easier. According to AXA, STeP has reduced the time from partner arrangements for repair or salvage to client notice to only a few minutes.

In May 2021, GEICO collaborated with AI startup Tractable to expedite its auto claim and repair procedures. A patented computer vision technique developed by Tractable has been trained on millions of past claims. Like a human assessor, the AI can evaluate vehicle damage based on photographs. GEICO wants to use Tractable's technology to assess estimates more quickly and correctly while cutting down on administrative work.

Market Dynamics:


Rise in traffic accidents- Pressure to invest in and develop such products that have less proliferation, high coverage, and provide financial security in the form of medical injury or any other damages is increasing as the market for auto insurance on accidents such as traffic collision, physical damage or bodily injury, theft, and fire grows. Auto insurance has become more necessary in light of the rise in traffic injuries, drunk driving, and distracted driving due to speeding in recent years. Most car owners rely on auto insurance to shield them from future financial losses like injuries to other drivers, passengers, or pedestrians.


Lack of awareness- Lack of knowledge and comprehension of auto insurance coverage is a major factor impeding the expansion of the auto insurance industry. Of the approximately 18 crore registered cars on Indian roadways, just 6.5 to 7 crore have insurance, according to the Insurance Information Bureau. Consumer experiences with frequent traffic accidents and low auto insurance adoption represent the primary challenge that needs to be addressed by eliminating knowledge gaps in the field of auto insurance.


Digital transformation- Auto insurance firms can now offer their clients extremely customized user experiences owing to digital transformation. In addition, because of social alienation, digital technologies like cell telematics and photo estimating tools are increasingly used in claim resolutions. Therefore, it is anticipated that these technologies will present the insured with profitable and remunerating opportunities during the forecast period.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the largest global auto insurance market, with a 41.4% market revenue share in 2022.

In North America, the population's increasing disposable income drives the auto insurance market. Due to advancements in technology and ongoing research and development into the security of autonomous vehicles, the market will grow. The increase in traffic accidents, collisions, injuries, and property damage in this area has also contributed to the popularity of auto insurance. Increased auto sales and laws mandating insurance for all vehicles are also anticipated to raise the demand for auto insurance and spur market expansion.

North America Region Auto Insurance Market Share in 2022 - 41.4%

Check the geographical analysis of this market by requesting a free sample

Coverage Segment Analysis

The coverage segment is divided into collision/comprehensive/other optional coverages and third-party liability coverage. The third-party liability coverage segment dominated the market, with a market share of around 58% in 2022. A policy of third-party liability insurance is purchased to protect against lawsuits from third parties. The Motor Vehicles Act mandates the purchase of third-party liability insurance. Owners of both new and used cars must be present at the time of vehicle registration, which is a major factor driving the global market expansion.

Distribution Channel Segment Analysis

The distribution channel segment is divided into direct response, insurance agents/brokers, banks, and others. The direct response dominated the market, with a market share of around 32% in 2022. Selling insurance to customers directly over the phone, on television, through direct mail, or other methods is known as "direct response." Furthermore, auto insurance companies research novel approaches for selling auto insurance to customers and focus on expanding their customers while trying to get the most out of their investment.

Vehicle Age Segment Analysis

The vehicle age segment is divided into used vehicles and new vehicles. The new vehicles segment dominated the market, with a market share of around 65% in 2022. A brand-new car has never registered on the market or belonged to anyone other than a distributor, dealer, or manufacturer. In addition, new automobile buyers need to get long-term third-party auto insurance for a minimum of three or five years. Additionally, because the manufacturer, distributor, or dealer has connections to many other market participants, they provide several benefits to buyers who finance new cars.

Application Segment Analysis

The application segment is divided into commercial and personal. The personal segment dominated the market, with a  market share of around 59% in 2022. Eight passengers, including the driver, can fit in a car designated as a personal vehicle. These vehicles have experienced tremendous market expansion because of their great cost-effectiveness, enhanced comfort, and increased durability, propelling the segment’s growth.

Some of the Key Market Players:
  • State Farm
  • Ping An Insurance
  • Zurich AG
  • AllState
  • PICC Property & Casualty Co Ltd
  • Allianz SE
  • AXA SA
  • Assicurazioni Generali
  • Bajaj Finserv

Report Description:

Attribute Description
Market Size Revenue (USD Billion)
Market size value in 2022 USD 810.0 Billion
Market size value in 2032 USD 1764.9 Billion
CAGR (2023 to 2032) 8.1%
Historical data 2019-2021
Base Year 2022
Forecast 2023-2032
Region The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.
Segments Coverage, Distribution Channel,  Vehicle Age, Application

Frequesntly Asked Questions

As per The Brainy Insights, the size of the auto insurance market was valued at USD 810.0 billion in 2022 to USD 1764.9 billion by 2032.

The global auto insurance market is growing at a CAGR of 8.1% during the forecast period 2023-2032.

North America emerged as the largest auto insurance market.

Key players in the auto insurance market are State Farm, Ping An Insurance, Zurich AG, AllState, PICC Property & Casualty Co Ltd, Allianz SE, AXA SA, Assicurazioni Generali, GEICO, and Bajaj Finserv.

Request Table of Content


This study forecasts global, regional, and country revenue from 2019 to 2032. The Brainy Insights has segmented the global auto insurance market based on the below-mentioned segments:

Global Auto Insurance Market By Coverage:

  • Collision/Comprehensive/Other Optional Coverages
  • Third Party Liability Coverage

Global Auto Insurance Market By Distribution Channel:

  • Direct Response
  • Insurance Agents/Brokers
  • Banks
  • Others  

Global Auto Insurance Market By Vehicle Age:

  • Used Vehicles
  • New Vehicles

Global Auto Insurance Market By Application:

  • Commercial
  • Personal

Global Auto Insurance Market By Region:                                  

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
  • Asia-Pacific
    • Japan
    • China
    • India
  • South America
    • Brazil
  • Middle East and Africa  
    • UAE
    • South Africa


Research has its special purpose to undertake marketing efficiently. In this competitive scenario, businesses need information across all industry verticals; the information about customer wants, market demand, competition, industry trends, distribution channels etc. This information needs to be updated regularly because businesses operate in a dynamic environment. Our organization, The Brainy Insights incorporates scientific and systematic research procedures in order to get proper market insights and industry analysis for overall business success. The analysis consists of studying the market from a miniscule level wherein we implement statistical tools which helps us in examining the data with accuracy and precision. 

Our research reports feature both; quantitative and qualitative aspects for any market. Qualitative information for any market research process are fundamental because they reveal the customer needs and wants, usage and consumption for any product/service related to a specific industry. This in turn aids the marketers/investors in knowing certain perceptions of the customers. Qualitative research can enlighten about the different product concepts and designs along with unique service offering that in turn, helps define marketing problems and generate opportunities. On the other hand, quantitative research engages with the data collection process through interviews, e-mail interactions, surveys and pilot studies. Quantitative aspects for the market research are useful to validate the hypotheses generated during qualitative research method, explore empirical patterns in the data with the help of statistical tools, and finally make the market estimations.

The Brainy Insights offers comprehensive research and analysis, based on a wide assortment of factual insights gained through interviews with CXOs and global experts and secondary data from reliable sources. Our analysts and industry specialist assume vital roles in building up statistical tools and analysis models, which are used to analyse the data and arrive at accurate insights with exceedingly informative research discoveries. The data provided by our organization have proven precious to a diverse range of companies, facilitating them to address issues such as determining which products/services are the most appealing, whether or not customers use the product in the manner anticipated, the purchasing intentions of the market and many others.

Our research methodology encompasses an idyllic combination of primary and secondary initiatives. Key phases involved in this process are listed below:


Data Procurement:

The phase involves the gathering and collecting of market data and its related information with the help of different sources & research procedures.

The data procurement stage involves in data gathering and collecting through various data sources.

This stage involves in extensive research. These data sources includes:

Purchased Database: Purchased databases play a crucial role in estimating the market sizes irrespective of the domain. Our purchased database includes:

  • The organizational databases such as D&B Hoovers, and Bloomberg that helps us to identify the competitive scenario of the key market players/organizations along with the financial information.
  • Industry/Market databases such as Statista, and Factiva provides market/industry insights and deduce certain formulations. 
  • We also have contractual agreements with various reputed data providers and third party vendors who provide information which are not limited to:
    • Import & Export Data
    • Business Trade Information
    • Usage rates of a particular product/service on certain demographics mainly focusing on the unmet prerequisites

Primary Research: The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. Primary research mainly involves in telephonic interviews, E-mail interactions and face-to-face interviews with the raw material providers, manufacturers/producers, distributors, & independent consultants. The interviews that we conduct provides valuable data on market size and industry growth trends prevailing in the market. Our organization also conducts surveys with the various industry experts in order to gain overall insights of the industry/market. For instance, in healthcare industry we conduct surveys with the pharmacists, doctors, surgeons and nurses in order to gain insights and key information of a medical product/device/equipment which the customers are going to usage. Surveys are conducted in the form of questionnaire designed by our own analyst team. Surveys plays an important role in primary research because surveys helps us to identify the key target audiences of the market. Additionally, surveys helps to identify the key target audience engaged with the market. Our survey team conducts the survey by targeting the key audience, thus gaining insights from them. Based on the perspectives of the customers, this information is utilized to formulate market strategies. Moreover, market surveys helps us to understand the current competitive situation of the industry. To be precise, our survey process typically involve with the 360 analysis of the market. This analytical process begins by identifying the prospective customers for a product or service related to the market/industry to obtain data on how a product/service could fit into customers’ lives.

Secondary Research: The secondary data sources includes information published by the on-profit organizations such as World bank, WHO, company fillings, investor presentations, annual reports, national government documents, statistical databases, blogs, articles, white papers and others. From the annual report, we analyse a company’s revenue to understand the key segment and market share of that organization in a particular region. We analyse the company websites and adopt the product mapping technique which is important for deriving the segment revenue. In the product mapping method, we select and categorize the products offered by the companies catering to domain specific market, deduce the product revenue for each of the companies so as to get overall estimation of the market size. We also source data and analyses trends based on information received from supply side and demand side intermediaries in the value chain. The supply side denotes the data gathered from supplier, distributor, wholesaler and the demand side illustrates the data gathered from the end customers for respective market domain.

The supply side for a domain specific market is analysed by:

  • Estimating and projecting penetration rates through analysing product attributes, availability of internal and external substitutes, followed by pricing analysis of the product.
  • Experiential assessment of year-on-year sales of the product by conducting interviews.

The demand side for the market is estimated through:

  • Evaluating the penetration level and usage rates of the product.
  • Referring to the historical data to determine the growth rate and evaluate the industry trends

In-house Library: Apart from these third-party sources, we have our in-house library of qualitative and quantitative information. Our in-house database includes market data for various industry and domains. These data are updated on regular basis as per the changing market scenario. Our library includes, historic databases, internal audit reports and archives.

Sometimes there are instances where there is no metadata or raw data available for any domain specific market. For those cases, we use our expertise to forecast and estimate the market size in order to generate comprehensive data sets. Our analyst team adopt a robust research technique in order to produce the estimates:

  • Applying demographic along with psychographic segmentation for market evaluation
  • Determining the Micro and Macro-economic indicators for each region 
  • Examining the industry indicators prevailing in the market. 

Data Synthesis: This stage involves the analysis & mapping of all the information obtained from the previous step. It also involves in scrutinizing the data for any discrepancy observed while data gathering related to the market. The data is collected with consideration to the heterogeneity of sources. Robust scientific techniques are in place for synthesizing disparate data sets and provide the essential contextual information that can orient market strategies. The Brainy Insights has extensive experience in data synthesis where the data passes through various stages:

  • Data Screening: Data screening is the process of scrutinising data/information collected from primary research for errors and amending those collected data before data integration method. The screening involves in examining raw data, identifying errors and dealing with missing data. The purpose of the data screening is to ensure data is correctly entered or not. The Brainy Insights employs objective and systematic data screening grades involving repeated cycles of quality checks, screening and suspect analysis.
  • Data Integration: Integrating multiple data streams is necessary to produce research studies that provide in-depth picture to the clients. These data streams come from multiple research studies and our in house database. After screening of the data, our analysts conduct creative integration of data sets, optimizing connections between integrated surveys and syndicated data sources. There are mainly 2 research approaches that we follow in order to integrate our data; top down approach and bottom up approach.

Market Deduction & Formulation: The final stage comprises of assigning data points at appropriate market spaces so as to deduce feasible conclusions. Analyst perspective & subject matter expert based holistic form of market sizing coupled with industry analysis also plays a crucial role in this stage.

This stage involves in finalization of the market size and numbers that we have collected from data integration step. With data interpolation, it is made sure that there is no gap in the market data. Successful trend analysis is done by our analysts using extrapolation techniques, which provide the best possible forecasts for the market.

Data Validation & Market Feedback: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helps us finalize data-points to be used for final calculations.

The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. The data validation interview and discussion panels are typically composed of the most experienced industry members. The participants include, however, are not limited to:

  • CXOs and VPs of leading companies’ specific to sector
  • Purchasing managers, technical personnel, end-users
  • Key opinion leaders such as investment bankers, and industry consultants

Moreover, we always validate our data and findings through primary respondents from all the major regions we are working on.

Some Facts About The Brainy Insights


Free Customization


Fortune 500 Clients


Free Yearly Update On Purchase Of Multi/Corporate License


Companies Served Till Date