Automotive Usage-Based Insurance Market

Automotive Usage-based Insurance Market is valued at USD 28.96 Billion in 2021 and expected to reach USD 103.78 Billion by 2028 with the CAGR of 20.00% over the forecast period

Scope of Global Automotive Usage-based Insurance Market

Automotive usage-based insurance is a type of auto insurance, which leverages in-vehicle communication systems to track mileage and driving behavior. Telematics systems provide accurate feedback of driving patterns and driver safety practices, enabling insurance enterprises to dynamically change the cost of insurance based on the estimated risk. In addition, the total miles driven, the time of day, on-road vehicle location overall positioning system or GPS, acceleration & braking patterns, and airbag usage, allow insurance providers to align insurance premium rates as per actual driving and reduce fraudulent insurance claims. Increasing adoption of Internet of Things (IoT) has generated a wave of connectivity, which had an influence in almost all industry verticals. This same wave also has a significant impact on automotive and insurance industry. Hence, the insurance companies are increasingly utilizing IoT data to improve the precision in gauging risk, pricing policies, and estimating other necessary reserve. This advancement of IoT has led the introduction of insurance policies such as automotive user based insurance (UBI).

Automotive usage based insurance offers several advantages over traditional insurance as it takes into consideration several factors including past driving history, make and model of vehicle, driving method to determine the insurance premium. The automotive usage based insurance utilizes real-time data to make decisions about insurance pricing and insurance type. Moreover, automotive usage based insurance offers high level of customization and flexibility to the end-users.

Global Automotive Usage-based Insurance Market report is segmented on the basis of product type, application, and region & country level. Based on product type, global automotive usage-based insurance market is classified as the odometer data based and GPS data based. Based upon application, global automotive usage-based insurance is classified into compact car, mid-size car, full-size car and SUV/crossover.

The regions covered in this Automotive Usage-based Insurance market report are North America, Europe, Asia-Pacific and Rest of the World. On the basis of country level, market of Automotive Usage-based Insurance is sub divided into U.S., Mexico, Canada, U.K., France, Germany, Italy, China, Japan, India, South East Asia, GCC, Africa, etc.

Key Players for Automotive Usage-based Insurance Market

Some major key players for Global Automotive Usage-based Insurance Market are

• Allianz SE
• AXA Insurance Company
• Progressive Incorporated
• Generali Group
• Insure The Box
• Allstate Insurance Company
• Desjardins Group
• Metro mile Car Insurance Company
• Liberty Mutual
• Aviva plc
• others.

Global Automotive Usage-based Insurance Segmentation

By Product Type:

• Odometer Data Based
• GPS Data Based

By Application:

• Compact Car
• Mid-size Car
• Full-size Car
• SUV/Crossover

Global Automotive Usage-based Insurance Market Dynamics–

Rising penetration of smartphone integrated with vehicle connectivity systems is one of the major factors expected to drive the growth of automotive usage-based insurance market over the forecast period. According to the World Health Organization (WHO); in 2020, the automotive industry retains strong influence and importance the automotive industry is a major industrial and economic force worldwide about 60 million cars and trucks a year. The global automotive insurance market is evolving with the growing automotive industry with increasing need for safety the insurance coverage for vehicles is also growing at higher premiums. In addition, increasing disposable income and the pattern of procurement of new vehicles is high developed and developing countries. The use of telematics helps insurers more accurately estimate accident damages and reduce fraud by enabling them to analyze the driving data such as hard braking, speed, and time during an accident. This additional data can also be used by insurers to refine or differentiate UBI products.

Furthermore, the ancillary safety benefits offered in conjunction with many telematics-based UBI programs also help to lower accident and vehicle theft related costs by improving accident response time, allowing for stolen vehicles to be tracked and recovered, and monitoring driver safety. Hence, the automotive insurance providers and opportunity to use new technology that virtually everyone owned to reduce their costs, making UBI even more attractive to both providers and consumers. In addition, the  insurance providers can get even more insight into driver habits like how often someone uses their phone behind the wheel and if this may be distracting them from safe driving  than ever before while reducing the costs of their policies and becoming even more competitive in the insurance marketplace.

However, increasing concerns regarding data privacy and lack of standardization may hamper the market growth. In spite of that increasing technological advancements to develop more innovative solutions can provide an opportunity for the further growth of the market.

Global Automotive Usage-based Insurance Market Regional Analysis

North America is expected to dominate the global automotive usage based insurance market due to the fact that, the country houses a large number of automotive OEMs, telematics companies, and insurance companies. Additionally, high adoption of newer technologies and solutions in this region, which has pushed the residents to opt for telematics insurance, is also supplementing the market growth. According to the World Health Organization (WHO); in 2020, the estimated revenue for the automobile insurance industry is 288.4 billion. How big is the car insurance industry, there are more than 500 car insurance providers in the U.S each with their own prices and policies. The growth in the automotive usage based insurance market is driven by increasing adoption of automation & advancement of telematics along with increasing popularity of customized insurance.

By Regional & Country Analysis

North America

• U.S
• Mexico
• Canada

Europe

• U.K
• France
• Germany
• Italy

Asia Pacific

• China
• Japan
• India
• Southeast Asia

Latin America

• Brazil
• The Middle East and Africa
• GCC
• Africa
• Rest of Middle East and Africa

Report Analysis	Details
Historical data	2018 - 2021
Forecast Period	2022 - 2028
Market Size in 2021:	USD 28.96 Billion
Base year considered	2021
Forecast Period CAGR %:	20.00%
Market Size Expected in 2028:	USD 103.78 Billion
Tables, Charts & Figures:	175
Pages	300
Key Players/Companies	Allianz SE, AXA Insurance Company, Progressive, Incorporated, Generali Group, Insure The Box Ltd., Allstate Insurance Company, Desjardins Group, Metro mile Car Insurance Company, Liberty Mutual, Aviva plc and others.
Segments Covered	By Product Type, By Application
Regional Analysis	North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa