Auto Insurance Market Size, Share, Growth Analysis, By Application(Personal, Commercial), By Coverage(Third Party Liability Coverage, Collision/Comprehensive/ Other Optional Coverages), By Vehicle Age(New Vehicle, Used Vehicle), By Region - Industry Forecast 2024-2031

Global Auto Insurance Market size was valued at USD 710 billion in 2022 and is poised to grow from USD 771.77 billion in 2023 to USD 1504.26 billion by 2031, growing at a CAGR of 8.70% during the forecast period (2024-2031).

Auto insurance constitutes a contractual shield, safeguarding policyholders against financial setbacks arising from accidents or theft. Functioning as a legal pact between the insurer and the policyholder, this arrangement entails the insurance provider pledging to indemnify incurred losses as per policy terms, in exchange for a premium.

Auto insurance serves as a fiscal buffer, shielding individuals from physical harm resulting from traffic collisions and vehicular theft. Moreover, it encompasses expenses stemming from accidents where an insured vehicle owner is accountable for injuries, fatalities, or property impairment inflicted upon other drivers, vehicles, or third-party assets like buildings, fences, or utility structures. Although auto insurance laws vary across jurisdictions, many regions mandate the acquisition of bodily injury and property damage liability coverage prior to operating or maintaining a vehicle on public thoroughfares. Given the escalating occurrence of road-related incidents globally, the vehicle insurance sector presents substantial potential for growth.

The pivotal drivers propelling the global auto insurance market's advancement comprise heightened accident rates, stringent governmental regulations mandating auto insurance acquisition, and an upsurge in worldwide automobile sales attributed to enhanced per capita consumer income. Additionally, the advent of autonomous vehicles has posed challenges to market expansion. Furthermore, the forecasted period may unveil promising prospects for market enlargement due to the infusion of technology into existing product and service portfolios, coupled with an elevated demand for third-party liability coverage in emerging economies.

US Auto Insurance Market is poised to grow at a sustainable CAGR for the next forecast year.