Motor Vehicle Insurance - United States

The Motor Vehicle Insurance market market in the United States is projected to reach a market size (gross written premium) of US$341.60bn by 2024.
This represents a significant growth in the market.
Furthermore, the average spending per capita in the Motor Vehicle Insurance market market is expected to amount to US$999.30 in 2024.
This indicates that individuals the United States are willing to invest a considerable amount in insuring their vehicles.
Looking ahead, the Motor Vehicle Insurance market market is predicted to exhibit an annual growth rate (CAGR 2024-2029) of 2.18%.
This steady growth is anticipated to result in a market volume of US$380.50bn by 2029.
In comparison to other countries, the United States is set to generate the highest gross written premium in the Motor Vehicle Insurance market market, with an estimated value of US$341.60bn in 2024.
This showcases the dominance of the United States in this market segment.
The United States motor vehicle insurance market is highly competitive, with a wide range of coverage options and insurers vying for customers.

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 United States is experiencing significant growth and evolution.

Customer preferences: Customers in the United States are increasingly valuing convenience and personalized services when it comes to motor vehicle insurance. With the rise of digitalization, there is a growing demand for online platforms that offer easy comparison tools, quick claims processing, and 24/7 customer support.

Trends in the market: One noticeable trend in the Motor Vehicle Insurance market in the United States is the increasing adoption of usage-based insurance. This innovative approach uses telematics technology to track driving behavior, allowing insurance companies to offer more tailored and potentially lower-cost policies to drivers based on their actual risk profiles. Additionally, there is a rising interest in eco-friendly and electric vehicles, leading to the development of specialized insurance products for this segment of the market.

Local special circumstances: The United States has a diverse regulatory environment across its states, which influences the motor vehicle insurance market. Each state has its own set of insurance laws and requirements, leading to variations in coverage options, pricing, and competitiveness. This decentralized system creates opportunities for insurance companies to tailor their products to specific state regulations and consumer needs.

Underlying macroeconomic factors: The overall economic conditions in the United States play a significant role in shaping the Motor Vehicle Insurance market. Factors such as employment rates, disposable income levels, and consumer confidence directly impact the demand for insurance products. As the economy fluctuates, so does the purchasing power and risk tolerance of consumers, influencing their decisions regarding insurance coverage and premiums. Additionally, regulatory changes at the federal level can also have a profound effect on the insurance market landscape, driving insurers to adapt their offerings and strategies accordingly.

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.