Car Insurance Market Report 2025 (Global Edition)

Global Car Insurance Market Report 2025 Market Size Split by Type Outlook: (Third-Party Liability Coverage, Collision/Comprehensive/Other Optional Coverages), by Application Outlook: (Personal, Commer...

Car Insurance Market Report Description

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Competitive Landscape of the Car Insurance Market

The competitive landscape of the car insurance market is highly fragmented, with numerous players offering a variety of coverage options. Key players include global insurers like State Farm, Allstate, Geico, and Progressive, alongside regional and digital-first companies. Competition is driven by pricing, customer service, and the ability to offer personalized policies. The rise of InsurTechs and digital platforms has intensified the market, providing innovative, tech-driven solutions that appeal to tech-savvy consumers. Additionally, factors such as claim processing efficiency, customization of policies, and customer satisfaction are crucial in determining market share and success in the sector.

In May 2021, GEICO, a major auto insurance provider, partnered with Tractable, an AI technology startup, with the aim of streamlining its auto claims and repair process. This collaboration leverages the power of Artificial Intelligence to assess vehicle damage efficiently and accurately. By analyzing photographs of the damaged vehicle, the AI system functions similarly to a human appraiser, providing an initial assessment of the extent and severity of the damage. This AI-powered evaluation not only expedites the claims process but also enhances accuracy and consistency in damage assessments, ultimately leading to faster and more efficient repairs for policyholders. (Source: https://tractable.ai/en/resources/geico-partners-with-tractable-to-accelerate-accident-recovery-with-ai)

Top Companies Market Share in Car Insurance Industry: (In no particular order of Rank)

• Allianz
• Allstate Insurance Company
• Admiral Group Plc
• Berkshire Hathaway Inc.
• CHINA PACIFIC INSURANCE CO.
• GEICO
• People's Insurance Company of China
• Ping An Insurance (Group) Company of China Ltd.
• State Farm Mutual Automobile Insurance
• Tokio Marine Group
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the Car Insurance Market

Which Region Dominates the Car Insurance Market in 2024?

According to Cognitive Market Research, North America currently dominates the Car insurance market, and the region is expected to have significant growth during the projected period. This is due to high vehicle ownership rates, a well-defined regulatory framework, and a competitive insurance landscape. The US market, in particular, benefits from increasing demand for both new and used vehicles, contributing to its substantial market share. Additionally, the rising costs of vehicle repairs further bolster the growth of the North American car insurance market.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific is expected to make significant gains during the projected period, with the greatest compound annual growth rate (CAGR). This growth is driven by rapid urbanization, a burgeoning middle class, and increasing disposable incomes, leading to higher vehicle ownership in countries like China and India. Additionally, the region's swift adoption of digital platforms has enhanced the accessibility and distribution of insurance products, further propelling market expansion.

The current report Scope analyzes Car Insurance Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Car Insurance Market Analysis

According to Cognitive Market Research, the global Car Insurance market size was estimated at USD 662142.6 Million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 264857.04 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.2% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Car Insurance market with a market size of USD 208972.20 million in 2024 and is projected to grow at a CAGR of 7.0% during the forecast period. The US market's rising vehicle ownership regulations.
• The Canada Car Insurance market had a market share of USD 31782.84 million in 2024 and is projected to grow at a CAGR of 8.0% during the forecast period. Canada's Car Insurance market is growing due to increased vehicle ownership and regulations.
• The Mexico Car Insurance market is projected to witness growth at a CAGR of 7.7% during the forecast period, with a market size of USD 24101.99 million in 2024.

Europe Car Insurance Market Analysis

According to Cognitive Market Research, the global Car Insurance market size was estimated at USD 662142.6 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 198642.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.5% from 2024 to 2031.

• The United Kingdom Car Insurance market had a market share of USD 33371.99 million in 2024 and is projected to grow at a CAGR of 8.3% during the forecast period. In the UK, car insurance sales are witnessing an upswing due to technological advancements and regulations.
• The France Car Insurance market is projected to witness growth at a CAGR of 6.7% during the forecast period, with a market size of USD 18275.14 million in 2024.
• According to Cognitive Market Research, the German Car Insurance market size was valued at USD 39331.27 million in 2024 and is projected to grow at a CAGR of 7.7% during the forecast period. In Germany, Car Insurance surged due to strong regulations, innovation, and demand.
• The Italy Car Insurance market is projected to witness growth at a CAGR of 6.9% during the forecast period, with a market size of USD 17083.28 million in 2024.
• The Russian car Insurance market is projected to witness growth at a CAGR of 6.5% during the forecast period, with a market size of USD 30789.63 million in 2024.
• The Spain Car Insurance market is projected to witness growth at a CAGR of 6.6% during the forecast period with a market size of USD 16288.71 million in 2024
• The Luxembourg Car Insurance market is projected to witness growth at a CAGR of 7.6% during the forecast period, with a market size of USD 6157.93 million in 2024.
• The Portugal Car Insurance market is projected to witness growth at a CAGR of 7.3% during the forecast period, with a market size of USD 4171.50 million in 2024.
• The Greece Car Insurance market is projected to witness growth at a CAGR of 7.8% during the forecast period, with a market size of USD 2383.71 million in 2024.
• The Rest of Europe's Car Insurance market is projected to witness growth at a CAGR of 6.2% during the forecast period, with a market size of USD 30789.63 million in 2024.

Asia Pacific Car Insurance Market Analysis

According to Cognitive Market Research, the global Car Insurance market size was estimated at USD 662142.6 Million, out of which Asia Pacific held the market share of around 23% of the global revenue with a market size of USD 152292.80 million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.0% from 2024 to 2031.

• According to Cognitive Market Research, the China Car Insurance market size was valued at USD 68531.76 million in 2024 and is projected to grow at a CAGR of 10.5% during the forecast period. Car Insurance surged in China due to increased vehicle ownership and regulations.
• The Japan Car Insurance market is projected to witness growth at a CAGR of 9.5% during the forecast period, with a market size of USD 21016.41 million in 2024.
• The India Car Insurance market had a market share of USD 18275.14 million in 2024 and is projected to grow at a CAGR of 12.8% during the forecast period. India's car insurance market grows due to rising vehicle ownership rates .
• The South Korean Car Insurance market is projected to witness growth at a CAGR of 10.1% during the forecast period, with a market size of USD 15229.28 million in 2024.
• The Australian Car Insurance market is projected to witness growth at a CAGR of 10.7% during the forecast period, with a market size of USD 7919.23 million in 2024.
• The South East Asia Car Insurance market is projected to witness growth at a CAGR of 12.0% during the forecast period, with a market size of USD 10508.20 million in 2024.
• The Rest of Asia Pacific Car Insurance market is projected to witness growth at a CAGR of 10.8% during the forecast period, with a market size of USD 10812.79 million in 2024.

South America Car Insurance Market Analysis

According to Cognitive Market Research, the global Car Insurance market size was estimated at USD 662142.6 Million, out of which Latin America held the market share of around 5% of the global revenue with a market size of USD 33107.13 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.4% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil Car Insurance market size was valued at USD 14169.85 million in 2024 and is projected to grow at a CAGR of 9.0% during the forecast period. Car Insurance flourished in Brazil due to increasing vehicle ownership rates.
• Argentina's Car Insurance market had a market share of USD 5562.00 million in 2024 and is projected to grow at a CAGR of 9.3% during the forecast period. Argentina's Car Insurance market grows due to rising vehicle ownership regulations .
• Colombia's Car Insurance market is projected to witness growth at a CAGR of 8.2% during the forecast period, with a market size of USD 2946.53 million in 2024.
• Peru Car Insurance market is projected to witness growth at a CAGR of 8.6% during the forecast period, with a market size of USD 2714.78 million in 2024.
• Chile's Car Insurance market is projected to witness growth at a CAGR of 8.7% during the forecast period, with a market size of USD 2382.71 million in 2024.
• The Rest of Latin America's Car Insurance market is projected to witness growth at a CAGR of 7.5% during the forecast period, with a market size of USD 5330.25 million in 2024.

Middle East Car Insurance Market Analysis

According to Cognitive Market Research, the global Car Insurance market size was estimated at USD 662142.6 Million, out of which the Middle East and Africa held the major market share of around 2% of the global revenue with a market size of USD 13242.85 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.7% from 2024 to 2031..

• The GCC Countries Car Insurance market is projected to witness growth at a CAGR of 9.5% during the forecast period, with a market size of USD 5667.94 million in 2024. Car Insurance sales flourish due to rising vehicle ownership and regulatory improvements.
• The Egypt Car Insurance market is projected to witness growth at a CAGR of 9.0% during the forecast period, with a market size of USD 1390.50 million in 2024.
• The South Africa Car Insurance market is projected to witness growth at a CAGR of 9.7% during the forecast period, with a market size of USD 2092.37 million in 2024. Car Insurance sales flourished in South Africa due to increased vehicle ownership.
• The Turkey Car Insurance market is projected to witness growth at a CAGR of 8.2% during the forecast period, with a market size of USD 1138.89 million in 2024.
• The Nigeria Car Insurance market is projected to witness growth at a CAGR of 7.8% during the forecast period, with a market size of USD 1390.50 million in 2024.
• The Rest of the MEA Car Insurance market is projected to witness growth at a CAGR of 7.7% during the forecast period, with a market size of USD 1562.66 million in 2024.

Car Insurance Market Analysis

How are Segments Performing in the Global Car Insurance Market?

Car Insurance Market Type Segment Analysis

According to Cognitive Market Research, Third-party liability coverage is the fastest-growing segment in the car insurance market due to its mandatory nature in many regions, providing essential protection against legal claims for bodily injury or property damage caused to others in an accident. The rising number of vehicles, coupled with increasing road accidents, is driving demand for this coverage. Additionally, growing awareness about the financial risks of accidents and legal obligations has contributed to the market's expansion. As governments impose stricter regulations on insurance coverage, third-party liability continues to grow in popularity, particularly in emerging markets where vehicle ownership is rising rapidly.

Collision coverage is a dominant segment in the car insurance market because it provides financial protection for vehicle repairs or replacement after a collision, regardless of who is at fault. As accidents are a common cause of damage, many drivers prioritize collision insurance for peace of mind. This coverage is particularly popular among those with newer, expensive vehicles or those who rely heavily on their cars for daily commuting. With rising vehicle repair costs and the increasing frequency of accidents, collision insurance has become a key component of comprehensive car insurance policies, contributing significantly to market growth.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Car Insurance Industry. Request a Free Sample PDF!

Car Insurance Market Application Segment Analysis

According to Cognitive Market Research, The personal car insurance market is growing rapidly due to several factors. Increasing awareness of the importance of insurance, rising vehicle ownership, and higher disposable incomes are driving demand. Consumers are seeking tailored policies that offer comprehensive coverage and value-added services. Additionally, the shift towards digital platforms has made it easier for individuals to compare policies and purchase insurance online. Personalized plans, which are customized based on individual needs and preferences, are attracting more customers. Moreover, the growing prevalence of vehicle-related risks, such as accidents and thefts, further accelerates the demand for personal car insurance.

In the Car Insurance Market, The commercial segment is dominating the car insurance market due to its growing demand among businesses and fleet owners. As more companies rely on vehicles for logistics, transportation, and service delivery, the need for commercial car insurance has surged. Policies tailored to fleets, higher coverage limits, and specialized options for businesses provide significant advantages over personal car insurance. Additionally, the increasing number of small and medium-sized enterprises (SMEs) incorporating vehicles into their operations and the expansion of the e-commerce sector further drive the demand for commercial car insurance, making it a key market segment.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Car Insurance Distribution Channel Outlook: Segment Analysis

Car Insurance Market Distribution Channel Segment Analysis

According to Cognitive Market Research, Insurance agents and brokers are driving the fastest-growing segment of the car insurance market by acting as intermediaries between consumers and insurance companies. They leverage their expertise to offer personalized solutions, helping customers navigate through complex insurance policies. With increased consumer demand for tailored coverage and competitive pricing, agents and brokers facilitate comparisons across multiple providers, ensuring better deals. Additionally, their role in digital transformation, using online platforms and advanced tools, enhances customer engagement and convenience. This combination of personalized service and technology-driven solutions is fueling the rapid growth of the car insurance market.

In the Car Insurance market, the rapidly growing sector is Direct response marketing dominates the car insurance market by offering a streamlined, cost-effective approach to acquiring customers. Through digital channels like websites, social media, and TV ads, insurers can directly reach consumers with tailored offers and quick quotes. This eliminates intermediaries, reduces costs, and enables insurers to pass savings onto customers. The convenience of online applications and immediate policy purchases, combined with personalized promotions, attracts consumers seeking fast, affordable insurance solutions. Additionally, the rise of comparison tools and easy access to reviews strengthens direct response methods, positioning them as a preferred choice for many drivers.

• Insurance Agents/Brokers
• Direct Response
• Banks

Car Insurance Vehicles Age Outlook: Segment Analysis

Car Insurance Market Vehicle Age Segment Analysis

According to Cognitive Market Research, The New Vehicles segment is the fastest-growing in the car insurance market due to the increasing number of vehicle registrations and advancements in automotive technology. New cars often come with higher value, advanced safety features, and manufacturer warranties, making them attractive to insurers. As more consumers opt for newer models, insurers are offering customized policies that cover modern features such as autonomous driving systems and electric vehicle-specific needs. Additionally, the growth in e-commerce and online car sales drives demand for instant insurance coverage, further boosting the new vehicle insurance segment's rapid growth in the market.

Used vehicles dominate the car insurance market due to their increasing ownership and affordability. As more consumers opt for pre-owned cars, insurers tailor policies to suit these vehicles' lower value and higher risk profiles. The demand for used car insurance is driven by cost-conscious buyers who seek comprehensive coverage at competitive rates. Additionally, the rising number of used car transactions, especially in emerging markets, creates a substantial customer base for insurers. Insurers adjust premiums based on vehicle age, model, and condition, thus making used vehicles a key driver in the growth and demand for car insurance.

• New Vehicles
• Used Vehicles

Author's Detail

Swasti Dharmadhikari

Research associate at Cognitive Market Research

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Swasti Dharmadhikari, an agile and achievement-focused market researcher with an innate ardor for deciphering the intricacies of the Service & Software sector. Backed by a profound insight into technology trends and consumer dynamics, she has committed herself to meticulously navigating the ever-evolving terrain of digital Services and software solutions.

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