Auto insurance market size and thare manufacturers in 2025

Q: What factors drive the overall growth of the auto insurance market?

The primary growth drivers are rising vehicle sales, strict legal mandates for insurance, and innovations in telematics-based and customized insurance products.

Q: What are the major challenges in the auto insurance market?

Key challenges include increasing fraudulent claims, intense competition, and the complexity of pricing models for autonomous vehicles.

Q: Which regions are expected to lead in market share?

North America and Europe are expected to hold significant market shares due to mature automotive markets and strong regulatory frameworks.

Q: How is digitalization impacting the auto insurance industry?

Digital platforms and mobile apps are streamlining policy purchases and renewals, while AI and data analytics are improving risk profiling and claim management efficiency.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

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Auto insurance market size | Top Leaders and Market Insights 2025

Code: MTA4049

Publication Date: Jun 2025

What is the auto insurance market size?

According to 绿帽社 internal database and industry insights, the Global auto insurance market was valued at approximately USD 790 billion in 2024 and is projected to surpass a valuation of USD 980 billion by 2031.

The drivers of the market are increased car sales, more stringent laws requiring mandatory insurance, and technological developments in usage-based insurance models and telematics are all factors contributing to this growth. Furthermore, the global market is expanding due to growing awareness of the importance of financial protection against accidents.

Key Growth Factors

Growth in vehicle ownership and new car sales
Stringent government regulations mandating motor insurance
Increasing adoption of usage-based and pay-as-you-drive insurance
Rising penetration of digital platforms for policy purchase and renewal
Advancements in telematics and AI-driven claim processing
Growing awareness about financial and legal security

Market Trends (2025–2031)

The market for auto insurance expected to grow significantly between 2025 and 2031. The primary forces behind this growth are customized premium offerings, AI-based fraud detection, and the rapid digital transformation of policy distribution. Additionally, the emergence of autonomous and electric vehicles is expected to change underwriting models and risk assessments, promoting industry innovation.