Report Overview

United States Motor Insurance Market – Industry Size, Trends & Forecast Report, 2031

United States Motor Insurance Market size was estimated at USD 809.51 billion in 2024. During the forecast period between 2025 and 2031, United States Motor Insurance Market size is projected to grow at a significant CAGR of 9.13% reaching a value of USD 1,492.22 billion by 2031. Prominent drivers of the market include evolving technological advancements, shifting vehicle ownership trends, and increasing digitalization. In 2022, the United States had approximately 280 million registered vehicles, highlighting the vast scale of the automotive sector and the corresponding demand for motor insurance. The rise of autonomous vehicles is reshaping traditional ownership models, fostering a shift toward shared mobility solutions that influence urban planning, infrastructure, and supply chains. Motor insurance, which falls under non-life insurance, accounts for around 51% of total premiums in the United States, reinforcing its significance. The industry is also experiencing rapid digital transformation, with 57% of United States consumers preferring businesses that offer digital payment options, while a J.D. Power report indicates that 90% of consumers are now open to purchasing auto insurance online. The digital distribution of auto insurance surged by 30% in the past year, prompting insurers to invest in advanced technological infrastructure and customer-focused digital solutions. Meanwhile, insurance costs have evolved due to vehicle technology advancements and rising repair expenses, with the average annual cost of owning and operating a 2022 model vehicle driven 15,000 miles reaching USD 10,728. Premiums vary based on vehicle type, with full-coverage insurance for a midsize sedan averaging USD 1,694, slightly higher than the USD 1,529 for a midsize SUV, while a 20-year-old male driver faced an average monthly premium of USD 142 in 2023. The United States Motor Insurance Market remains highly competitive, with established insurers and emerging insurtech players driving innovation. State Farm Mutual Automobile Insurance led the private passenger auto insurance market in 2022, capturing a 16.9% share of written premiums. The industry is witnessing increased adoption of telematics, IoT, and blockchain technologies, enabling insurers to develop personalized pricing models and enhance risk assessment. These advancements are fundamentally transforming the insurance landscape, improving efficiency, customer engagement, and overall market competitiveness.

Motor Insurance – Overview

Motor insurance is a type of insurance policy that provides financial protection against losses or damages incurred by a vehicle due to accidents, theft, natural disasters, or third-party liabilities. It covers private cars, commercial vehicles, and two-wheelers, ensuring compliance with legal requirements and safeguarding policyholders from unexpected financial burdens. Motor insurance typically includes third-party liability coverage (mandatory in many countries), comprehensive coverage, and own-damage coverage, depending on the policy type.

United States Motor Insurance Market

Growth Drivers

Increasing Number of Vehicles on the Road

The increasing number of vehicles on United States roads is a key driver of growth in the United States Motor Insurance Market. With more than 280 million registered vehicles in 2022, the rising vehicle ownership has led to heightened demand for insurance policies to ensure financial protection against accidents, theft, and liabilities. This surge in vehicles has also contributed to a higher frequency of accidents, increasing claims and reinforcing the need for robust coverage. Reckless driving, speeding, and distracted driving have further escalated accident rates, necessitating comprehensive motor insurance. Additionally, the adoption of telematics and IoT-based insurance models is transforming the industry, enabling insurers to offer personalized and usage-based policies. The shift towards digital solutions is evident, with 57% of United States consumers prioritizing digital payment options and 90% open to purchasing auto insurance online. Changing vehicle ownership patterns, including autonomous and shared mobility solutions, are reshaping the insurance landscape, compelling insurers to develop new coverage models. Despite these evolving trends, the continuous increase in vehicle registrations underscores the enduring demand for motor insurance, solidifying its crucial role in the United States insurance sector.

Challenges

Rising Claims Costs

Rising claims costs are significantly restraining the growth of the United States Motor Insurance Market. In 2024, car insurance premiums saw an increase of over 25%, driven by higher repair and replacement costs, as well as a surge in accidents, including fatal collisions, leading to larger insurer payouts. The complexity of modern vehicles has further escalated repair costs, outpacing inflation. These rising claims costs have forced insurers to raise premiums to maintain profitability, resulting in consumers spending a higher percentage of their income on insurance, with some states seeing premiums account for over 6% of wages. This growing financial strain is contributing to market stagnation, as many consumers are actively shopping for new plans in search of lower rates, further slowing market growth.

Impact of Escalating Geopolitical Tensions on United States Motor Insurance Market

Escalating geopolitical tensions could significantly impact the growth of United States Motor Insurance Market by exacerbating supply chain disruptions and inflation. As conflicts and trade uncertainties intensify, the cost of materials, such as auto parts and labor, has risen, leading to higher repair costs for insurers. Additionally, the volatility in global markets affects vehicle pricing, further driving up premiums. Insurance companies, facing increased operational costs, are compelled to raise rates, which burdens consumers. Consequently, geopolitical instability contributes to higher premiums, reduced affordability, and growing dissatisfaction among United States drivers, limiting the market’s growth potential.

United States Motor Insurance Market

Segmental Coverage

United States Motor Insurance Market – By Coverage Type

Based on coverage type, United States Motor Insurance Market is divided into Liability Coverage, Collision Coverage, Comprehensive Coverage, Medical Payments/Personal Injury Protection, and Uninsured/Underinsured Motorist Coverage segments. The liability coverage segment holds the highest share in United States Motor Insurance Market by coverage type. The segment's dominance is driven by legal requirements, as most states mandate drivers to have minimum liability coverage. The growth of this segment is fueled by an increase in accidents and rising claim severities. Third-party auto insurance covers losses caused to others by the policyholder’s actions, including bodily injury and property damage. Its strength is further bolstered by the fact that all states, except New Hampshire and Virginia, require this coverage for legal operation. Additionally, private third-party liability premiums significantly surpass commercial auto liability premiums, reflecting strong consumer adoption. Also, the liability coverage segment is sub-segmented into bodily injury liability and property damage liability. The bodily injury liability sub-segment holds a higher share in United States Motor Insurance Market. The significant valuation underscores its importance in safeguarding against claims related to third-party injuries, reflecting the rising demand for comprehensive liability coverage amid an increasingly litigious environment.

United States Motor Insurance Market – By Vehicle Type

United States Motor Insurance Market by vehicle type is segmented into Personal Vehicles, Commercial Vehicles, Motorcycles, and Recreational Vehicles. The personal vehicles segment holds the highest share in United States Motor Insurance Market by vehicle type. The dominance is largely attributed to mandatory auto insurance requirements in most states and the high volume of private vehicle ownership. The National Association of Insurance Commissioners (NAIC) reports significant growth in nationwide auto insurance spending, particularly in states like New York, Louisiana, and the District of Columbia. The segment’s strength is bolstered by comprehensive coverage options, including liability, collision, and comprehensive insurance. Leading companies in this space include State Farm Mutual Automobile Insurance, Berkshire Hathaway Inc., and Progressive Corporation. Additionally, the direct insurance channel has seen notable growth, with a 27% increase in 2023, reflecting consumers' growing preference for direct purchases. Meanwhile, The commercial vehicle insurance segment is expected to record the fastest growth rate during the forecast period. The growth is primarily fueled by the expanding commercial transportation sector and heightened awareness of the unique insurance needs for business vehicles. The increasing adoption of fleet insurance, which allows businesses to cover multiple vehicles under one policy, further supports this growth. Providers are responding by offering comprehensive coverage options, including liability and specialized coverage for various commercial vehicles. Additionally, insurers are integrating advanced technologies such as telematics and AI-driven risk assessment tools to improve pricing accuracy and enhance risk management for fleet operators.

United States Motor Insurance Market – By Policy Type

On the basis of policy type, United States Motor Insurance Market is segmented into Annual Policies, Monthly Policies, and Short-term Policies segments.

United States Motor Insurance Market – By Distribution Channel

By distribution channel, United States Motor Insurance Market is segmented into Agents, Brokers, Direct-to-Consumer (D2C), and Online Aggregators segments. The agents segment holds the highest share in United States Motor Insurance Market by distribution channel. Insurance agents act as key intermediaries, offering personalized services and expert advice in policy selection. This channel is particularly strong in states like Texas, Florida, and California, where insurance sales agents are in high demand. The success of this distribution method is also reflected in high customer satisfaction rates, especially among Baby Boomers and Generation X, who appreciate the personalized approach. Agents have adapted to modern trends by integrating digital tools while maintaining the personal service valued by customers, especially for complex insurance needs.

Competitive Landscape

Major players operating in United States Motor Insurance Market include Nationwide, Geico, State Farm, Progressive Corp., Zurich Insurance, Allstate, Liberty Mutual, USAA, Allianz, Travelers Companies Inc., Generali, Old Republic International Corp., Chubb, Aviva, MetLife, American Family Insurance, The Hartford, AXA, and Berkshire Hathaway. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In February 2025 - Governor Ron DeSantis recently announced significant auto insurance rate reductions in Florida, including decreases from major insurers like GEICO, State Farm, and Progressive. The state has also welcomed 11 new insurance companies, boosting competition. These changes follow reforms aimed at stabilizing the market, reducing frivolous litigation, and enhancing consumer protections.

• In December 2024 - California announced an increase in auto liability coverage limits, effective January 2025. The first adjustment in 56 years will double bodily injury/death coverage to USD 30,000 for one person and USD 60,000 for multiple individuals, while property damage coverage will triple to USD 15,000. Additional increases are scheduled for 2035. These changes aim to provide better financial protection amid rising costs, though concerns about higher premiums and potential litigation increases have been raised.

• In January 2024 - The Travelers Companies, Inc. finalized its acquisition of Corvus Insurance Holdings, Inc., a prominent cyber insurance managing general underwriter recognized for its advanced proprietary technologies.

Scope of the Report

By Coverage Type        

• Liability Coverage

• Collision Coverage

• Comprehensive Coverage

• Medical Payments/Personal Injury Protection

• Uninsured/Underinsured Motorist Coverage

By Vehicle Type

• Personal Vehicles

• Commercial Vehicles

• Motorcycles

• Recreational Vehicles

By Policy Type

• Annual Policies

• Monthly Policies

• Short-term Policies

By Distribution Channel

• Agents

• Brokers

• Direct-to-Consumer (D2C)

• Online Aggregators

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. United States Motor Insurance Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing Number of Vehicles on the Road
         2. Rising Cost of Vehicle Repairs
         3. Growing Awareness of the Importance of Insurance
      2. Restraints
         1. Rising Claims Costs
         2. Regulatory Changes
      3. Opportunities
         1. Development of New Insurance Products and Services
         2. Increasing Demand for Usage-Based Insurance
      4. Challenges
         1. Susceptibility to Economic Downturns
         2. High Level of Competition
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. United States Motor Insurance Market: Marketing Strategies
5. United States Motor Insurance Market: Pricing Analysis
6. United States Motor Insurance Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Coverage Type        
         1. Liability Coverage
            1. Bodily Injury Liability
            2. Property Damage Liability
         2. Collision Coverage
         3. Comprehensive Coverage
         4. Medical Payments/Personal Injury Protection
         5. Uninsured/Underinsured Motorist Coverage
      2. By Vehicle Type
         1. Personal Vehicles
         2. Commercial Vehicles
         3. Motorcycles
         4. Recreational Vehicles
      3. By Policy Type
         1. Annual Policies
         2. Monthly Policies
         3. Short-term Policies
      4. By Distribution Channel
         1. Agents
         2. Brokers
         3. Direct-to-Consumer (D2C)
         4. Online Aggregators
7. Competitive Landscape
   1. List of Key Players and Their End Users
   2. United States Motor Insurance Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Oping Parameters
   4. Key Strategic Development (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on United States Motor Insurance Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Nationwide
   2. Geico
   3. State Farm
   4. Progressive Corp.
   5.  Zurich Insurance
   6. Allstate
   7. Liberty Mutual
   8. USAA
   9.  Allianz
   10. Travelers Companies Inc.
   11. Generali
   12. Old Republic International Corp.
   13.  Chubb
   14.  Aviva
   15. MetLife
   16.  American Family Insurance
   17.  The Hartford
   18.  AXA
   19.  Berkshire Hathaway
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1   United States Motor Insurance Market Segmentation

Figure 2   United States Motor Insurance Market Value Chain Analysis

Figure 3   Company Market Share Analysis, 2024

Figure 4   United States Motor Insurance Market Size, By Value (USD Billion), 2019–2031

Figure 5   United States Motor Insurance Market Share, By Coverage Type, By Value (USD Billion) 2019–2031

Figure 6   United States Motor Insurance Market Share, By Vehicle Type, By Value (USD Billion) 2019–2031

Figure 7 United States Motor Insurance Market Share, By Policy Type, By Value (USD Billion) 2019–2031

Figure 8   United States Motor Insurance Market Share, By Distribution Channel, By Value (USD Billion) 2019–2031

List of Tables

Table 1      United States Motor Insurance Market Share, By Coverage Type, By Value (USD Billion) 2019–2031

Table 2      United States Motor Insurance Market Share, By Vehicle Type, By Value (USD Billion) 2019–2031

Table 3      United States Motor Insurance Market Share, By Policy Type, By Value (USD Billion) 2019–2031

Table 4      United States Motor Insurance Market Share, By Distribution Channel, By Value (USD Billion) 2019–2031

Table 5      Nationwide Company Overview

Table 6      Nationwide Financial Overview

Table 7      Geico Company Overview

Table 8      Geico Financial Overview

Table 9      State Farm Company Overview

Table 10    State Farm Financial Overview

Table 11    Progressive Corp. Company Overview

Table 12    Progressive Corp. Financial Overview

Table 13    Zurich Insurance Company Overview

Table 14    Zurich Insurance Financial Overview

Table 15    Allstate Company Overview

Table 16    Allstate Financial Overview

Table 17    Liberty Mutual Company Overview

Table 18    Liberty Mutual Financial Overview

Table 19    USAA Company Overview

Table 20    USAA Financial Overview

Table 21    Allianz Company Overview

Table 22    Allianz Financial Overview

Table 23    Travelers Companies Inc. Company Overview

Table 24    Travelers Companies Inc. Financial Overview

Table 25    Generali Company Overview

Table 26    Generali Financial Overview

Table 27    Old Republic International Corp. Company Overview

Table 28    Old Republic International Corp. Financial Overview

Table 29    Chubb Company Overview

Table 30    Chubb Financial Overview

Table 31    Aviva Company Overview

Table 32    Aviva Financial Overview

Table 33    MetLife Company Overview

Table 34    MetLife Financial Overview

Table 35    American Family Insurance Company Overview

Table 36    American Family Insurance Financial Overview

Table 37    The Hartford Company Overview

Table 38    The Hartford Financial Overview

Table 39    AXA Company Overview

Table 40    AXA Financial Overview

Table 41    Berkshire Hathaway Company Overview

Table 42    Berkshire Hathaway Financial Overview