Motor insurance market seen topping $1.53 trillion by 2030

The Business Research Company projects the global motor insurance market will surpass $1.53 trillion by 2030, growing about 10% a year as vehicle ownership, EV adoption and digital claims tools reshape the sector. North America is expected to remain the largest regional market, while liability coverage stays the biggest product line.

Why it matters: - Motor insurance is moving from a mature line of business to a larger digital and data-driven market. - The forecast points to strong demand from rising vehicle ownership, electric vehicles and connected-car technology. - The category is expected to remain central to the broader property and casualty insurance market through 2030.

What happened: - The Business Research Company released its Motor Insurance Global Market Report 2026, covering market size, trends and forecasts for 2026-2035. - The report says the global motor insurance market will exceed $1,534 billion by 2030. - The market is projected to grow at a 10% compound annual growth rate through 2030. - Motor insurance is expected to account for about 45% of the projected $3,433 billion property and casualty insurance market in 2030. - The segment will represent close to 3% of the projected $50,609 billion financial services market in 2030.

The details: - North America is forecast to remain the largest regional market in 2030, with premiums of $577 billion, up from $377 billion in 2025. - North America’s premium growth is projected at a 9% CAGR. - The report links that growth to high vehicle ownership, telematics adoption, usage-based insurance, advanced vehicle technology, mandatory insurance rules and demand for digital claims and customized coverage in the U.S. and Canada. - The U.S. is projected to be the largest national market in 2030 at $534 billion, up from $348 billion in 2025. - U.S. motor insurance premiums are forecast to rise at 9% a year. - Growth in the U.S. is tied to sales of new and premium vehicles, connected-car technologies, electric and autonomous vehicles, mobile-first policy management, instant claims and AI-powered underwriting. - Rising vehicle ownership from urbanization is expected to add about 1.9% to yearly market growth. - Sustainability initiatives are projected to contribute about 1.3% annually. - EV adoption is estimated to add about 0.8% to annual growth. - Liability insurance, comprehensive coverage, collision coverage and personal injury protection are expected to add more than $577 billion in value by 2030. - Liability insurance alone is projected to grow by $273 billion between 2025 and 2030. - Comprehensive coverage is projected to grow by $182 billion over the same period. - Collision coverage is projected to grow by $79 billion. - Personal injury protection is projected to grow by $43 billion. - The report cites AI-driven claims automation, connected vehicle diagnostics, roadside assistance, digital insurance ecosystems and shared or subscription-based vehicle ownership as growth enablers. - Liability insurance is forecast to dominate the market in 2030 with 43% of total premiums, equal to $659 billion. - The report says the market also segments by vehicle age and by vehicle type, including passenger cars, light commercial vehicles and heavy commercial vehicles. - The report says digital insurance platforms are changing claims processing, customer experience and policy management. - Kiwi General Insurance launched a proprietary digital platform in June 2026 with Super NCB, Flexi Repair, InstaCash and PayFirst to speed claims and simplify servicing. - The market is relatively fragmented, with the top 10 companies accounting for 19% of revenue in 2025. - State Farm Mutual Automobile Insurance Company and The Progressive Corporation each held 7% market share in 2025. - GEICO held 2% of the market. - Allianz SE, Berkshire Hathaway Inc. and AXA S.A. each held 1%. - Liberty Mutual Insurance Companies, Zurich Insurance Group Ltd. and Tokio Marine Holdings Inc. each held 0.4%. - The Allstate Corporation held 0.3%. - The report identifies digital platforms, artificial intelligence, telematics, usage-based insurance and automated claims as core competitive tactics. - State Farm ranked first globally in motor insurance sales in 2025 with a 7% market share. - The report says State Farm offers automobile insurance products, coverage solutions, claims management and digital platforms for personal and commercial vehicles and emerging mobility trends.

Between the lines: - The market forecast suggests insurers are competing less on basic coverage and more on speed, personalization and digital service quality. - Fragmentation leaves room for regional growth, product innovation and consolidation around data, distribution and claims technology. - EVs and autonomous vehicles are creating specialized underwriting needs that could reshape pricing and product design.

What’s next: - Insurers are likely to keep expanding usage-based pricing, digital claims tools and AI underwriting. - Growth should continue in liability and other core policy types as vehicle registrations rise and repair costs stay elevated. - Competition is expected to intensify around telematics, customer experience and mobile policy management. - The Business Research Company says the report includes new 2026 features such as market attractiveness scoring, TAM analysis, company scoring matrices, Excel forecasting dashboards, hotspots infographics and updated graphics and tables.

The bottom line: - Motor insurance remains a huge and growing global market, but the biggest gains are shifting toward insurers that can blend scale, digital tools and risk analytics.