Motor Vehicle Insurance - Mexico | Statista Market Forecast

The Motor Vehicle Insurance market market in Mexico is expected to reach a projected market size (gross written premium) of US$7.07bn in 2024.
On average, each person in Mexico is projected to spend US$54.66 on Motor Vehicle Insurance market in the same year.
The market is anticipated to experience an annual growth rate of 3.18% (CAGR 2024-2029), leading to a market volume of US$8.27bn by 2029.
When compared globally, the United States is projected to generate the highest gross written premium of US$341.6bn in 2024.
Mexico's motor vehicle insurance market is experiencing a surge in demand due to the country's high rate of road accidents and the need for comprehensive coverage.

Definition:

Motor vehicle insurance, often referred to as auto insurance, is a type of coverage that offers financial protection to individuals who own or operate vehicles like cars, motorcycles, or trucks. When you have motor vehicle insurance, you pay regular premiums to an insurance company, and in return, the insurer helps cover the costs associated with accidents, damages, and injuries related to your vehicle. This insurance market is essential for providing security and financial assistance in case of accidents, ensuring that individuals can repair or replace their vehicles.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Insurance of land motor vehicles

Accident insurance
Insurance for aerial vehicles
Insurance for watercraft
insurance for spacecraft
All other insurance types, such as life insurance and health insurance
Reinsurance

The Motor Vehicle Insurance market in Mexico is experiencing significant growth and evolution. Customer preferences in the Mexican Motor Vehicle Insurance market are shifting towards more comprehensive coverage options as consumers become more aware of the benefits of having adequate protection for their vehicles. This trend is in line with global patterns where customers are increasingly looking for tailored insurance solutions to meet their specific needs and provide them with peace of mind. Trends in the Mexican Motor Vehicle Insurance market indicate a rise in the adoption of telematics and usage-based insurance policies. This trend is driven by advancements in technology that allow insurance companies to collect data on driving behavior, leading to more personalized pricing models and incentives for safer driving practices. Additionally, there is a growing focus on digitalization in the distribution and servicing of motor vehicle insurance policies, making it more convenient for customers to purchase and manage their coverage online. Local special circumstances in Mexico, such as the high rate of motor vehicle theft and the prevalence of road accidents, play a significant role in shaping the Motor Vehicle Insurance market. These factors contribute to the increasing demand for insurance coverage among Mexican drivers, driving competition among insurance providers to offer innovative products and services to attract and retain customers. Underlying macroeconomic factors, including the overall economic growth of Mexico and the stability of the automotive industry, also influence the development of the Motor Vehicle Insurance market. As the economy continues to expand and more people purchase vehicles, the demand for insurance coverage is expected to increase, presenting opportunities for insurers to expand their customer base and market share in the country. Additionally, regulatory changes and government initiatives aimed at improving road safety and insurance penetration further drive the growth and development of the Motor Vehicle Insurance market in Mexico.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

As the population of the United States grows, so too does the number of drivers on the road and thus the customer base for motor insurance. In 2022, there were over 280 million registered vehicles on the roads in the United States. Of those millions of registered vehicles, each year there are also millions of vehicle crashes. Road traffic fatalities in the U.S. peaked in 2021. So while many individuals feel secure in their vehicles, the statistics indicate the importance of automobile insurance and in most cases, auto insurance is required by law. Auto insurance is important because it not only covers any physical damage that may occur in an accident, but also any damage or injury that might be caused because of a vehicular accident or which may be done upon oneself or one’s vehicle by another vehicle or accident – a falling tree for example.