Global Automotive Insurance Market Size, Share, Forecast Report, 2020-2027
Auto insurance is a contract between the insurance company and vehicle owner that protects vehicle owner against financial loss in the event of vehicle theft or accident. The insurance company agrees to pay the covered amount of the losses in exchange for paying a premium. Automotive insurance covers the coverage and loss of property (car damage or theft), liability (bodily injury), and medical (injury and rehabilitation cost). Collision insurance, gap insurance, comprehensive insurance, rental reimbursement collision, classic car insurance, medical payments coverage, and uninsured motorist insurance are some of the most popular automotive insurance options available in the market.
Increasing awareness among end users, introduction of innovative technologies and products, and the availability of third-party insurance providers in developing nations such as India, Vietnam, Indonesia, and China to provide substantial traction for the automotive insurance industry over the forecast period. Automotive insurance companies are working with software providers to offer big data-based solutions to satisfy the end user’s concerns and untapped market demand during a car-related transaction.
Furthermore, digital technologies and mobile internet are transforming the vehicle industry and so the vehicle/automotive insurance industry. The automotive industry is undoubtedly undergoing significant changes that will help increase asset utilization, change vehicle ownership models, and improve vehicle safety, which will eventually impact the global automotive insurance market. Additionally, the introduction of autonomous technology has made cars increasingly safer, which is expected to reduce the vehicle accidents by significant percent during the forecast period. Moreover, a rise in on-demand transportation and the shifting of liability to manufacturers are some of the factors that are expected to hinder the growth of global automotive insurance during the forecast period.
The global automotive insurance market is segmented based on vehicle type, insurance type, and region. On the basis of vehicle type, the global market has been segmented into passenger cars, light commercial vehicle (LCV), and heavy commercial vehicle (HCV). On the basis of insurance type, the global market has been segmented into third-party, comprehensive, third-party theft and fire, and others.
Geographically, the global automotive insurance industry has been segmented into four major regions, which are North America, Europe, Asia-Pacific, and the rest of the world. The auto insurance market in Asia-Pacific is expected to dominate the global market, owing to the significant increase in the sale of vehicles across China, India, and ASEAN countries and the presence of a large number of insurance providers and third-parties in Asia-Pacific. Furthermore, South America and the Middle East & Africa is expected to witness considerable growth in the global automobile insurance market over the next decade.
The players involved in the global automotive insurance industry are Allstate Insurance Company (US), RAC Motoring Services (UK), Progressive Casualty Insurance Company (US), Clements Worldwide (US), GEICO (US), NFU Mutual (UK), Zhongan Insurance (China), ABIC Inc. (China), CPIC (China), State Farm Mutual Automobile Insurance Company (US), RSA Insurance Group plc (UK), and Zurich Insurance Group (Switzerland).