Newark, April 17, 2023 (GLOBE NEWSWIRE) -- The Brainy Insights estimates that the EV Insurance market will grow from USD 52.02 billion in 2022 to USD 247.49 billion by 2032. The EV insurance market is witnessing an increase in demand from consumers of electric vehicles. Consumers are willing to cover the cost of any future damage that may be caused to their cars through insurance policies.
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Report Coverage Details
| Report Coverage | Details |
| Forecast Period | 2023–2032 |
| Base Year | 2022 |
| Market Size in 2022 | USD 52.02 Billion |
| Market Size in 2032 | USD 247.49 Billion |
| CAGR | 16.88% |
| No. of Pages in Report | 237 |
| Segments Covered | The research segment is based on EV type, plan type, vehicle type, coverage and distribution channel. |
| Drivers | Increasing EV insurance purchasing |
| Opportunities | Increased consumption of electric hybrid vehicles |
| Restraints | High cost of premium |
Key Insight of the EV Insurance Market
North America region to account for the largest market size during the forecast period.
North America is expected to have the largest market share in the EV Insurance market during the forecast period. The factors supporting the growth of the North American EV Insurance market include high EV sales in the U.S. and Canada. Many major regional players have provided EV insurance distributors with lucrative opportunities. The companies are offering UBI insurance to ensure the safety of electric vehicles.
The battery-operated segment is expected to augment the market during the forecast period.
The EV type segment is divided into battery-operated and hybrid. The battery-operated segment is expected to augment the market during the forecast period. Battery-operated EVs are more in demand due to their beneficial attributes. Battery electric vehicles store the electrical energy that drives the motor in a battery pack. By connecting the car to an electric power source, EV batteries can be charged.
The comprehensive coverage segment is expected to grow at the highest CAGR during the forecast period.
The plan type segment includes third-party liability coverage and comprehensive coverage. The comprehensive coverage segment is expected to augment the market during the forecast period. Comprehensive insurance is another option that guards against damage to electric vehicles caused by non-collision accidents. It is necessary for automobiles that are currently being financed by a loan as well as those that are leased.
The passenger segment was valued at USD 37.47 Billion in 2022.
The vehicle type segment includes commercial and passenger. The passenger segment was valued at USD 37.47 Billion in 2022. With growing disposable income, many consumers have recently purchased personal vehicles. Thus, the demand for automotive insurance has also increased with the rise in sales of passenger vehicles.
The battery or parts replacement segment is expected to augment the market during the forecast period.
The coverage segment includes accidental damage, theft, natural disaster damage, fire damage and battery or parts replacement. The battery or parts replacement segment is expected to augment the market during the forecast period. Electric vehicles require the replacement of the battery or any other part in case it gets damaged. The cost of an EV's battery is high, and thus most consumers insure it when purchasing.
The insurance companies segment is expected to grow at the highest CAGR during the forecast period.
The distribution channel segment includes banks, insurance companies, online brokers and OEMs. The insurance companies segment is expected to augment the market during the forecast period. Insurance companies provide various services to their customers and assist them in purchasing suitable policies for their EVs.
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Market Dynamics
Driver: High probability of EV accidents
The automotive industry is preparing for a significant technological leap in areas like autonomous driving, connected mobility, and zero-emission vehicles. EV insurance is thus subject to equally high demands. Electric cars are expected to run on roadside infrastructure created decades ago. The number of road accidents in the United States has increased over the last few years. Today, run-off-road crashes account for over 50% of all traffic deaths. With almost 284 million automobiles on the road as of the third quarter of 2021, the United States is one of the nations with the most traffic. The amount of traffic is one of the factors contributing to an increase in traffic accidents. Thus, due to these factors, many consumers are now buying premium EV insurance policies to safeguard their vehicles from future damage.
Restraint: High cost
EV insurance is costlier in comparison to gasoline or diesel vehicles. Consumers have to pay higher premium prices for insuring their electric cars. The reason can be attributed to the high cost of components and batteries of electric vehicles. This impacts the demand for EV Insurance among consumers.
Opportunity: Increasing initiatives to promote the use of EVs
The automotive industry has evolved over the years following the rise in disposable income, development of new models, lower interest rates, availability of credit facilities, etc. Electric vehicle sales nearly doubled in the last decade due to the increasing cost of gas and diesel, increasing rate of pollution and shifting preference of automotive consumers. Government agencies are promoting EV use by providing several tax initiatives to consumers. EV is the primary technology for de-carbonizing the road transportation industry, which generates 16% of all emissions worldwide. Thus, many regional governments have even rolled out several manufacturing cost concessions for manufacturing companies.
Challenge: Preference for conventional vehicles
Many consumers prefer gasoline or diesel engine vehicles over electric vehicles, especially in developing regions such as Asia-Pacific and the Middle East. EVs have high maintenance costs, which many consumers negatively perceive. This factor has affected EV sales in such regions, which has impacted the EV insurance market.
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Some of the major players operating in the EV Insurance market are:
• AXA
• Allianz
• Aviva
• Allstate Insurance Company
• Zurich Insurance Group
• ACKO General Insurance
• HDFC ERGO
• Beinsure Digital Media
• Lemonade Inc.
• GEICO
• Liberty Mutual Insurance Group
• Esure
• Progressive Casualty Insurance Company
• Direct Line
• General Motors
• Stellaris
Key Segments Cover in the Market:
By EV Type:
• Battery Operated
• Hybrid
By Plan Type:
• Third-Party Liability Coverage
• Comprehensive Coverage
By Vehicle Type:
• Commercial
• Passenger
By Coverage:
• Accidental Damage
• Theft
• Natural Disaster Damage
• Fire Damage
• Battery or Parts Replacement
By Distribution Channel:
• Banks
• Insurance Companies
• Online Brokers
• OEMs
By Region
• North America (U.S., Canada, Mexico)
• Europe (Germany, France, the U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)
About the report:
The market is analyzed based on value (USD Billion). All the segments have been analyzed global, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyzes driving factors, opportunities, restraints, and challenges to gain critical market insight. The study includes porter's five forces model, attractiveness analysis, product analysis, supply, and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.
About The Brainy Insights:
The Brainy Insights is a market research company, aimed at providing actionable insights through data analytics to companies to improve their business acumen. We have a robust forecasting and estimation model to meet the clients' objectives of high-quality output within a short span of time. We provide both customized (clients' specific) and syndicate reports. Our repository of syndicate reports is diverse across all the categories and sub-categories across domains. Our customized solutions are tailored to meet the clients' requirement whether they are looking to expand or planning to launch a new product in the global market.
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