Short term Car Insurance Market Report 2025 (Global Edition)

Global Short term Car Insurance Market Report 2025 Market Size Split by Type (Rental car insurance, Nonowner's insurance, Guaranteed Auto Protection (GAP) insurance, Others), by Vehicle Type (Passenge...

Short term Car Insurance Market Report Description

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Short term Car Insurance Market Insights Video

Competitive Landscape of the Short term Car Insurance Market

In the Short term Car Insurance Market features a competitive landscape with several key players striving to differentiate their offerings through flexibility, digital platforms, and tailored services. Leading companies, including Cuvva, Veygo, and Tempcover, focus on providing on-demand, user-friendly insurance solutions that cater to varying customer needs. Insurtech firms leverage advanced technology like A.I. and data analytics to streamline the user experience, reduce costs, and offer competitive pricing.

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

• AXA
• Allstate Insurance
• Berkshire Hathaway
• Allianz
• AIG
• Generali
• State Farm Insurance
• Munich Reinsurance
• Metlife
• Nippon Life Insurance
• Ping An
• PICC
• China Life Insurance
• Cuvva
• Dayinsure Eco-Products Inc.
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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 Short term Car Insurance Market

Which Region Dominates the Short term Car Insurance Market in 2024?

According to Cognitive Market Research, North America currently dominates the Short term Car Insurance Market, and the region is expected to increase demand for flexible and affordable coverage options. In the U.S., the rising trend of car rentals, shared mobility, and short-term vehicle leasing boosts the market. Millennials and younger drivers seeking temporary coverage for road trips, seasonal use, or test driving contribute significantly to growth. In Canada, similar factors play a role, with the added demand for temporary insurance by individuals using imported vehicles or when lending a car. The presence of leading insurance providers and digital platforms offering quick, customizable plans also accelerates market expansion in the region.

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). The increasing urbanization, rising car ownership, and a growing demand for flexible insurance options. Countries like China, India, and Japan are key contributors, with significant market growth due to expanding middle-class populations and increased disposable incomes. The shift towards digitalization and the availability of on-demand insurance services are enhancing customer experience and accessibility. In emerging economies like Indonesia and Malaysia, short-term policies are becoming popular due to their affordability and adaptability to varying driving needs. The rise of car-sharing services and a preference for short-duration travel insurance also support market expansion.

The current report Scope analyzes Short term 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 Short term Car Insurance Market Analysis

According to Cognitive Market Research, the global Short term Car Insurance Market size was estimated at USD XX 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 XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 2.7% from 2024 to 2031.

• According to Cognitive Market Research, the U.S. had a major share in the Short term Car Insurance Market with a market size of USD XX million in 2024 and is projected to grow at a CAGR of 2.5% during the forecast period. The U.S. market's Stringent governmental regulations against plastic pollution.
• The Canada Short term Car Insurance Market had a market share of USD XX million in 2024 and is projected to grow at a CAGR of 3.5% during the forecast period. Canada’s rising awareness among the population.
• The Mexico Short term Car Insurance Market is projected to witness growth at a CAGR of 3.2% during the forecast period, with a market size of USD XX million in 2024.

Europe Short term Car Insurance Market Analysis

According to Cognitive Market Research, the global Short term Car Insurance Market size was estimated at USD XX Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.0% from 2024 to 2031.

• The United Kingdom Short term Car Insurance Market had a market share of USD XX million in 2024 and is projected to grow at a CAGR of 3.8% during the forecast period. In the U.K., short-term bio car insurance sales are witnessing an upswing due to the increasing focus on environmental sustainability.
• The France Short term Car Insurance Market is projected to witness growth at a CAGR of 2.2% during the forecast period, with a market size of USD XX million in 2024.
• According to Cognitive Market Research, the German Short term Car Insurance Market size was valued at USD XX million in 2024 and is projected to grow at a CAGR of 3.2% during the forecast period. In Germany, Short-term Car Insurance surged due to the Increased focus of the manufacturers and major market players.
• The Italy Short term Car Insurance Market is projected to witness growth at a CAGR of 2.4% during the forecast period, with a market size of USD XX million in 2024.
• The Russian Short term Car Insurance Market is projected to witness growth at a CAGR of 2.0% during the forecast period, with a market size of USD XX million in 2024.
• The Spain Short term Car Insurance Market is projected to witness growth at a CAGR of 2.1% during the forecast period with a market size of USD XX million in 2024
• The Luxembourg Short term Car Insurance Market is projected to witness growth at a CAGR of 3.1% during the forecast period, with a market size of USD XX million in 2024.
• The Portugal Short term Car Insurance Market is projected to witness growth at a CAGR of 2.8% during the forecast period, with a market size of USD XX million in 2024.
• The Greece Short term Car Insurance Market is projected to witness growth at a CAGR of 3.3% during the forecast period, with a market size of USD XX million in 2024.
• The Rest of Europe's Short term Car Insurance Market is projected to witness growth at a CAGR of 1.7% during the forecast period, with a market size of USD XX million in 2024.

Asia Pacific Short term Car Insurance Market Analysis

According to Cognitive Market Research, the global Short term Car Insurance Market size was estimated at USD XX Million, out of which Asia Pacific held the market share of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031.

• According to Cognitive Market Research, the China Short term Car Insurance Market size was valued at USD XX million in 2024 and is projected to grow at a CAGR of 6.0% during the forecast period. Short-term Car Insurance surged in China due to the Increased focus of the manufacturers and major market players.
• The Japan Short term Car Insurance Market is projected to witness growth at a CAGR of 5.0% during the forecast period, with a market size of USD XX million in 2024.
• The India Short term Car Insurance Market had a market share of USD XX million in 2024 and is projected to grow at a CAGR of 8.3% during the forecast period. India's rising awareness among the populations .
• The South Korean Short term Car Insurance Market is projected to witness growth at a CAGR of 5.6% during the forecast period, with a market size of USD XX million in 2024.
• The Australian Short term Car Insurance Market is projected to witness growth at a CAGR of 6.2% during the forecast period, with a market size of USD XX million in 2024.
• The South East Asia Short term Car Insurance Market is projected to witness growth at a CAGR of 7.5% during the forecast period, with a market size of USD XX million in 2024.
• The Rest of the Asia Pacific Short term Car Insurance Market is projected to witness growth at a CAGR of 6.3% during the forecast period, with a market size of USD XX million in 2024.

South America Short term Car Insurance Market Analysis

According to Cognitive Market Research, the global Short term Car Insurance Market size was estimated at USD XX Million, out of which Latin America held the market share of around 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.9% from 2024 to 2031.

• According to Cognitive Market Research, Brazil's Short term Car Insurance Market size was valued at USD XX million in 2024 and is projected to grow at a CAGR of 4.5% during the forecast period. Short term Car Insurance flourished in Brazil due to increasing demand for packaged food and beverages.
• Argentina's Short term Car Insurance Market had a market share of USD XX million in 2024 and is projected to grow at a CAGR of 4.8% during the forecast period. Argentina's rising personal disposable income .
• Colombia's Short term Car Insurance Market is projected to witness growth at a CAGR of 3.7% during the forecast period, with a market size of USD XX million in 2024.
• Peru Short term Car Insurance Market is projected to witness growth at a CAGR of 4.1% during the forecast period, with a market size of USD XX million in 2024.
• Chile's Short term Car Insurance Market is projected to witness growth at a CAGR of 4.2% during the forecast period, with a market size of USD XX million in 2024.
• The Rest of Latin America's Short term Car Insurance Market is projected to witness growth at a CAGR of 3.0% during the forecast period, with a market size of USD XX million in 2024.

Middle East Short term Car Insurance Market Analysis

According to Cognitive Market Research, the global Short term Car Insurance Market size was estimated at USD XX 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 XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031..

• The GCC Countries Short term Car Insurance Market is projected to witness growth at a CAGR of 5.0% during the forecast period, with a market size of USD XX million in 2024. Short-term Car Insurance sales flourish due to the presence of major market players.
• The Egypt Short term Car Insurance Market is projected to witness growth at a CAGR of 4.5% during the forecast period, with a market size of USD XX million in 2024.
• The South Africa Short term Car Insurance Market is projected to witness growth at a CAGR of 5.2% during the forecast period, with a market size of USD XX million in 2024. Short-term car insurance sales have flourished in South Africa due to increasing demand and regulatory support.
• The Turkey Short term Car Insurance Market is projected to witness growth at a CAGR of 3.7% during the forecast period, with a market size of USD XX million in 2024.
• The Nigeria Short term Car Insurance Market is projected to witness growth at a CAGR of 3.3% during the forecast period, with a market size of USD XX million in 2024.
• The Rest of the MEA Short term Car Insurance Market is projected to witness growth at a CAGR of 3.2% during the forecast period, with a market size of USD XX million in 2024.

Short term Car Insurance Market Analysis

Short term Car Insurance Market Type Segment Analysis

According to Cognitive Market Research, rent vehicles for a short duration. It typically includes protection against damages to the rental car, liability for third-party injuries or property damage, and personal accident insurance for the driver and passengers. The demand for rental car insurance is driven by frequent travelers, tourists, and business professionals who require temporary vehicle coverage. Its flexibility, ease of access, and the growing trend of car rentals due to travel needs are key factors influencing its growth.

The Nonowner's insurance protects against bodily injury and property damage to others without covering the vehicle itself. The segment is gaining traction among people who occasionally borrow cars or use car-sharing services. Rising urbanization, increased use of ride-sharing platforms, and the shift toward minimal car ownership among younger generations are significant factors contributing to the expansion of the Nonowner's insurance segment.

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 Short term Car Insurance Industry. Request a Free Sample PDF!

Short term Car Insurance Market Capacity Segment Analysis

According to Cognitive Market Research, passenger cars offer flexibility and cost-effectiveness, catering to individuals who require coverage for a limited period without committing to long-term policies. The growing popularity of car-sharing services and ride-hailing platforms has further fueled the demand in this segment, as users often opt for short-term coverage to safeguard against potential liabilities during their usage.

In the Short term Car Insurance Market, commercial vehicles are gaining traction, driven by businesses and fleet operators who need temporary coverage for vehicles used in specific projects or seasonal operations. This segment includes trucks, vans, and other commercial transport vehicles. Companies prefer short-term policies to manage costs efficiently, especially for vehicles that are not in constant use. The rising trend of e-commerce and logistics operations has increased the demand for short-term insurance in this segment, providing coverage for delivery vehicles and cargo transport during peak times.

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

Short term Car Insurance Application Segment Analysis

Short term Car Insurance Market Application Segment Analysis

According to Cognitive Market Research, the personal vehicles. It is typically utilized for various short-term needs, such as borrowing a car, renting a vehicle, or covering a newly purchased car for a brief period until a long-term policy is in place. The demand for personal use short-term car insurance is growing due to its flexibility, affordability, and convenience. It appeals particularly to younger drivers, infrequent drivers, or those who need immediate coverage for travel or special occasions.

In the Short term Car Insurance Market, the commercial vehicles. It includes coverage for vehicles used in logistics, transportation, and other business operations on a temporary basis. The commercial use segment is driven by companies that seek cost-effective and flexible insurance options for short-duration projects, seasonal activities, or when hiring temporary drivers. This type of coverage is crucial for businesses that operate with varying fleet sizes and need scalable solutions without long-term commitments.

• Personal Use
• Commercial Use
• Leisure/Travel
• Others

Short term Car Insurance Distribution channel Segment Analysis

Short term Car Insurance Market End-use Segment Analysis

According to Cognitive Market Research, the online channel offers customers the convenience of comparing multiple policies, receiving instant quotes, and purchasing insurance without visiting a physical location. The rise in smartphone usage, improved internet connectivity, and digital payment options have further boosted this segment. Customers find it easier to customize policies according to their needs, and the quick processing time for policy issuance and claims settlement adds to the appeal of online short-term car insurance.

Offline Short-Term Car Insurance, on the other hand, is characterized by traditional methods involving face-to-face interactions with agents or brokers. This segment appeals to consumers who prefer personalized service and in-depth consultations. Older demographics, in particular, may lean towards offline options for the assurance of expert guidance and the ability to ask questions directly. While this channel may lack the speed of online options, it often fosters trust and relationship-building, which can be crucial in insurance purchasing decisions..

• Online
• Insurance Company Websites
• Mobile Apps
• Others
• Offline
• Insurance Brokers/Agents
• Car Dealerships
• Others

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.

Author's Conclusion