The automotive usage-based insurance market is growing rapidly, with a forecasted increase from $41.48 billion in 2023 to $48.90 billion in 2024, reflecting a CAGR of 17.9%. This growth is driven by the rise of connected vehicles and the need for improved risk assessment. Expectations indicate the market will reach $95.28 billion by 2028, at a CAGR of 18.1%. The integration of AI and telematics will further enhance market dynamics.
The growing vehicle ownership trend is likely to boost the automotive usage-based insurance market. This growth stems from rising disposable incomes, urbanization, and an increasing need for personal mobility. Usage-based insurance offers personalized premiums based on driving habits, providing incentives for safe driving. Statistics Canada reported that the total number of registered road motor vehicles in Canada reached 26.3 million in 2022, a 0.3% increase from 2021. This trend reflects a greater interest in innovative insurance solutions tailored to modern driving behaviors.
Request A Free Sample Of The Automotive Usage Based Insurance Market ReportState Farm, MetLife Services and Solutions LLC, Nationwide Mutual Insurance Company, Allstate Insurance Company, Progressive Casualty Insurance Company, Chubb Limited, The Travelers Indemnity Company, Aviva plc, Government Employees Insurance Company (GEICO), MAPFRE SA, American Family Insurance, Mitsui Sumitomo Insurance Group, Bajaj Finserv Limited, Verisk Analytics Inc., Liberty Mutual Group Inc., Root Insurance Company, The Zebra, Lemonade Inc., Berjaya Sompo Insurance Berhad, Arity LLC, Octo Telematics S.p.A, Insurethebox limited, Flock Limited, Mile Auto Inc.
In the automotive usage-based insurance market, companies are focusing on technology-driven insurance solutions for enhanced customer experience. Carro and Mitsui Sumitomo Insurance (MSI) partnered in February 2021 to introduce AI-powered behavior-based car insurance. This innovative model analyzes driver behavior through data science, incentivizing safe driving and providing a seamless app-based experience for users.
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The automotive usage-based insurance market covered in this report is segmented –
1) By Type: Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), Manage-How-You-Drive (MHYD)
2) By Vehicle Type: Passenger Cars, Commercial Vehicles
3) By Technology: Black Box, On-Board Diagnostics (OBD)-II, Embedded, Smartphone, Other Technologies
4) By Distribution Channel: Insurance Companies, Aggregator Platforms
4) By End-User: Individual Consumers, Fleet Owners Or Managers
By Geography:The regions covered in the automotive usage-based insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the automotive usage based insurance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
The Automotive Usage Based Insurance Global Market Report 2024 furnishes information about the global automotive usage based insurance market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.