The global motor vehicle liability insurance market revenue was US$ 320 billion in 2021. The global motor vehicle liability insurance market revenue is forecast to reach US$ 667.75 billion by 2030, growing at a compound annual growth rate (CAGR) of 8% during the forecast period from 2022 to 2030.
In general, most countries require that all cars have liability insurance. The insurance typically comes in the car insurance policy. In addition to motor vehicle liability insurance, drivers may also opt to purchase comprehensive insurance. Additionally, a life insurance policy covers the insured person's legal liability in the event of death or disability to a third party and any losses or damages suffered by a third party. Thus, protecting the drivers from criminal prosecution in the event of unintentional accidents.
Factors Influencing Market Growth
Impact Analysis of COVID-19
COVID-19 has negatively affected the growth of the global motor vehicle liability insurance market. Travel restrictions in several countries have reduced the number of kilometers and usage of vehicles on the road, which leads policyholders to seek out bailouts, reduced premiums, and refunds. As a result, insurers have frozen sales of new coverages for auto insurance. Many states also require drivers to obtain motor vehicle liability insurance. Despite travel restrictions and fear of infection, car sales have declined to more than 50%, indicating a significant drop in auto insurance policies. It presents a challenge to auto insurance providers. In the pandemic situation, key players are introducing new strategies in order to improve the customer experience and increase their market share.
Regional Insights
North America dominated the motor vehicle liability insurance market in 2020 and is forecast to grow at the highest rate during the forecast period. In economically developing countries like the U.S. and Canada, a large population uses motor vehicles, boosting the market growth. In addition, the government's investment in the development of roads and runways in this region is forecast to increase the regional market growth.
During the forecast period, Asia-Pacific is forecast to grow significantly. As a result of the increasing number of accidents caused by fast cars in developing nations in Asia-Pacific, such as China and India.
Leading Competitors
The leading prominent companies profiled in the global motor vehicle liability insurance market are:
Scope of the Report
The global motor vehicle liability insurance market segmentation focuses on Mode, Distribution Channel, Vehicle Age, Application, and Region.
Segmentation based on Mode
Segmentation based on Distribution Channel
Segmentation based on Vehicle Age
Segmentation based on Application
Segmentation based on Region