Auto Insurance Market Research Report 2023

Auto Insurance Market Synopsis

The Global Auto Insurance Market size is expected to grow from USD 7,68,198.17 Million in 2023 to USD 13,59,820.03 Million by 2030, at a CAGR of 8.50% during the forecast period (2023-2030).

As the name suggests it is the kind of insurance that covers the automotive sector. This insurance is only for the vehicle. If any unfortunate incident happened with the car & it gets damaged badly then the insurance company will pay for that. It is a legal requirement in most states and countries for drivers to have at least a minimum amount of auto insurance coverage.

• It covers several policies which include liability of car, collision/ accident, and comprehensive.
• This coverage pays for damages or injuries you cause to others in an accident. It typically includes bodily injury liability and property damage liability.
• This coverage pays for damages to your vehicle that result from a collision with another vehicle or object.
• Auto insurance premiums are based on several factors, including the driver's age, driving record, location, type of vehicle, and coverage options. Drivers with a good driving record and a low-risk vehicle typically pay lower premiums than those with a history of accidents or violations.
• It's important to note that auto insurance policies have limits and exclusions. Drivers should carefully review their policies to understand what is and is not covered. Additionally, it’s important to shop around for auto insurance policies to ensure you're getting the best coverage for your needs at the best price.

Top Key Players Involved Are:

"State Farm (USA),  GEICO (USA),   Progressive (USA),   Allstate (USA),   USAA (USA),   Nationwide (USA),   Travelers (USA),   Liberty Mutual (USA),   Farmers Insurance (USA),   American Family Insurance (USA),   AIG (USA),   Zurich Insurance Group (Switzerland),   AXA (France),   Aviva (United Kingdom),   Admiral Group (United Kingdom),   Munich Re (Germany),   Berkshire Hathaway (USA),   Tokio Marine (Japan),   Ping An Insurance (China),   PICC (China) and Other Major Players."

Auto insurance market trend analysis

Promoting New Policies By The Government

• Regulatory support is a strength of the auto insurance market, as governments around the world require drivers to have auto insurance coverage. In most states and countries, drivers must have liability insurance to cover damages and injuries they may cause to others in an accident.
• The government is promoting various new policies for auto insurance which include, mandating the coverage area of the insurance, pricing of the insurance or premium to be paid by the policyholder, enhancement for the protection of consumer & sometimes it also gives incentive to the good policyholder.
• Moreover, regulatory support helps to ensure that insurance companies are solvent and able to meet their obligations to policyholders. Regulators oversee the financial health of insurers and require them to maintain certain capital and reserve levels to protect policyholders in the event of financial difficulties.
• Overall, regulatory support is an important strength of the auto insurance market, as it provides stability, predictability, and protection for both insurers and consumers.

Insurance For Autonomous Cars/ Self-Driving Cars

• Autonomous vehicles present a unique challenge for the auto insurance industry, as the risks and liabilities associated with self-driving cars are different from those associated with traditional cars. As a result, insurers are developing new products and services to address the specific needs of autonomous vehicle owners and operators.
• This is based on the idea that accidents caused by self-driving cars are likely the result of a technology malfunction, rather than driver error. In this scenario, the manufacturer or technology provider would be responsible for covering damages and injuries caused by the malfunction.
• Another approach is to offer specialized insurance products for autonomous vehicles, which may include features such as cybersecurity coverage and liability coverage for accidents caused by technology malfunctions.
• Overall, the insurance industry is still in the early stages of developing products and services for autonomous vehicles. As the technology continues to evolve and become more prevalent, insurers will need to be innovative and adaptable to meet the needs of this emerging market.

Segmentation Analysis Of the Auto Insurance Market

Auto insurance market segments cover vehicle age, type & distribution channel. By type Personal vehicle insurance is expected to dominate the market in the forecast period.

• Personal vehicle auto insurance is a type of insurance coverage that protects drivers against financial losses that may arise from accidents or damage to their vehicles. This type of insurance typically includes damages and injuries caused to other drivers or their property, as well as coverage for damage to the insured driver's vehicle.
• Collision coverage, which covers damages to a vehicle resulting from a collision, and uninsured/underinsured motorist coverage, which protects in the event of an accident caused by a driver who does not have sufficient insurance coverage, are also common types of optional coverage.
• The cost of personal vehicle auto insurance can vary based on factors such as the driver's age, driving history, the type of vehicle being insured, and the level of coverage chosen.
• Auto insurance is typically required by law in most states, although the minimum level of coverage required can vary by state. It is important for drivers to carefully consider their insurance needs and select a policy that provides adequate protection at a price they can afford.

Regional Analysis Of Auto Insurance Market

North America is anticipated to dominate the auto insurance market over the forecast period.

• North America is the region that has the highest rate of road accidents in the world. That’s why the rate of auto insurance is high in North America.
• In the United States, the auto insurance market is highly competitive, with a large number of insurance providers offering a wide range of coverage options and pricing models.
• In Canada, the auto insurance market is also highly regulated and competitive, with each province having its own set of insurance regulations and requirements. Insurance providers must meet certain requirements to operate in each province, and rates can vary widely based on factors such as the driver's age, driving record, and location.
• In Mexico, auto insurance is required by law and can be purchased from a variety of insurance providers. However, the market is less developed than in the United States and Canada, and insurance coverage options may be more limited.
• Overall, the auto insurance market in North America is an important and highly regulated industry that provides essential protection to drivers while also generating significant revenue for insurance providers.

Covid-19 Impact Analysis Of The Auto Insurance Market

• One of the primary impacts of the pandemic on the auto insurance market has been a decrease in driving due to lockdowns, remote work policies, and reduced travel. With fewer drivers on the road, the risk of accidents and claims has also decreased, leading to a decrease in demand for auto insurance. This has resulted in some insurance companies offering refunds or discounts to policyholders to reflect the reduced risk of accidents.
• Furthermore, during the pandemic many policyholders have to leave their jobs and become jobless. Which leads to cancellations or reductions in insurance coverage for saving money.
• The pandemic has also impacted the claims process, with some claims being delayed due to closures and social distancing measures. This has resulted in increased processing times and costs for insurance providers, which has further impacted their profitability.
• Overall, the impact of covid pandemic on the auto insurance market has been significant, with decreased demand and increased costs impacting both insurance providers and policyholders.

Top Key Players Covered In The Auto Insurance Market

• State Farm (USA)
• GEICO (USA)
• Progressive (USA)
• Allstate (USA)
• USAA (USA)
• Nationwide (USA)
• Travelers (USA)
• Liberty Mutual (USA)
• Farmers Insurance (USA)
• American Family Insurance (USA)
• AIG (USA)
• Zurich Insurance Group (Switzerland)
• AXA (France)
• Aviva (United Kingdom)
• Admiral Group (United Kingdom)
• Munich Re (Germany)
• Berkshire Hathaway (USA)
• Tokio Marine (Japan)
• Ping An Insurance (China)
• PICC (China) and Other Major Players.

Key Industry Developments Of the Auto Insurance Market

In March 2023, Insurify completes the acquisition of Compare.com. Insurify, Inc. (“Insurify”), America’s top-rated virtual insurance agent to compare, buy and manage insurance, has completed the acquisition of Inspop USA, LLC and its subsidiary, Compare.com Insurance Agency, LLC (“Compare.com”), a pioneer in the U.S. online auto insurance comparison market.

In July 2020, Ping A Signs an Agreement with Shionogi to Launch Joint Ventures. The joint ventures will become development centers for drugs that Shionogi is developing globally. With a focus on infectious disease and central nervous system (CNS) disorders, Shionogi has amassed a wealth of knowledge about the disease and strong drug-discovery capabilities. Combining these competencies with Ping An’s big data and artificial intelligence (AI) analytical technology, the joint ventures will establish a research and development platform to efficiently create high-value-added, innovative medicines and healthcare services and deliver customized solutions for customers.