Usage-based Insurance Global Market Report 2024

The usage-based insurance market size has grown exponentially in recent years. It will grow from $48.38 billion in 2023 to $63.29 billion in 2024 at a compound annual growth rate (CAGR) of 30.8%. Historical growth can be attributed to several factors, including increased vehicle ownership, rising incidents of vehicle theft, strong demand for passenger car sales, and widespread adoption of connected cars.

The usage-based insurance market size is expected to see exponential growth in the next few years. It will grow to $175.27 billion in 2028 at a compound annual growth rate (CAGR) of 29.0%. Forecasted growth is driven by the expanding automotive sector, increased demand for electric vehicles, rising vehicle safety concerns, and insurance companies' adoption of usage-based insurance for profitability. Key trends include focus on connected tech, smartphone-based telematics, telematics technology, partnerships, and self-installed telematics devices.

The anticipated growth of the usage-based insurance market is closely tied to the expansion of the automobile industry. The automotive sector, comprising various entities involved in the design, development, production, marketing, and sale of automobiles, is experiencing significant growth. Telematics-driven usage-based insurance has garnered interest among car owners, offering low premiums for low-risk driving and correspondingly higher premiums for high-risk driving. This incentivizes individuals to adjust their driving habits, leading to substantial reductions in insurance premiums. According to the Economist Intelligence Unit (The EIU), the global automotive sector is projected to achieve double-digit growth in 2021, with a 15% increase in new car sales and a 16% rise in commercial vehicle sales. Furthermore, electric vehicle sales are expected to surge from 2.5 million in 2020 to 3.4 million in 2021. Consequently, the growth of the automobile industry serves as a key driver for the usage-based insurance market.

A driving force behind the growth of the usage-based insurance market is the escalating concerns surrounding road traffic and vehicle safety. Telematics technology, the foundation of usage-based insurance, calculates premiums while providing real-time alerts and suggestions to drivers for enhanced safety. The global increase in road accidents has prompted a heightened focus on passenger safety. For instance, in 2021, the National Highway Traffic Safety Administration (NHTSA) reported 42,915 deaths in the US resulting from motor vehicle traffic crashes, marking a 10.5% increase from the 38,824 fatalities recorded in 2020. The growing apprehensions about vehicle safety are expected to drive the demand for usage-based insurance, further propelling market growth.

Companies in the usage-based insurance market are making substantial investments in connected technologies, which facilitate the connection of devices and systems via the internet. The focus on connected technologies is driven by the goal of providing enhanced products and services to customers. An illustrative example is the initiative by By Miles, a UK-based car insurance startup, in April 2022. By Miles launched the By Miles Connect platform, enabling connected car drivers to link their insurance policies directly from their vehicles. Utilizing the cloud platform installed in the vehicles, the platform gathers information about the distance driven to determine insurance pricing.

Partnerships and collaborations have become a prevalent trend among market players in the usage-based insurance sector. Companies are actively engaging in partnerships and collaborations to foster market growth and expand their consumer base. For instance, State Farm, a US-based insurance company, collaborated with Ford, a US-based automobile manufacturer, in February 2022 to launch the Drive Safe & Save program, a State Farm usage-based insurance initiative. This program allows customers to benefit from adjusted premiums based on vehicle mileage and driving behavior. State Farm customers with Ford or Lincoln vehicles can manage their overall vehicle ownership costs by reducing premiums through good driving behaviors or by improving their driving habits. Additionally, MSIG Thailand, an insurance company in Thailand, partnered with AIS Insurance Service, a Thailand-based digital technology company, in February 2021. Together, they launched Prakan Kubdee (Good Driving Insurance), a pay-as-you-drive insurance product in Thailand. This innovative product utilizes MSIG Car Informatics equipment, an IoT device developed by AIS, attached to the vehicle's onboard diagnostic port to calculate premiums based on real-time driving behavior. These partnerships exemplify the collaborative efforts within the usage-based insurance market to leverage technology for customer benefits and market expansion.

In January 2021, The Allstate Corporation, a US-based insurance company, completed the acquisition of National General Holdings Corp for $4 billion. This strategic move aimed to bolster The Allstate Corporation's presence in the personal lines insurance sector, augmenting its market share. The addition of National General's accident and health business also contributes to broadening Allstate's range of protective offerings. National General Holdings Corp, also based in the US, specializes in personal and commercial automobile insurance, health insurance, and various niche insurance products.

Major companies operating in the usage-based insurance market report are Progressive Corporation, Allstate Corporation, UNIPOLSAI ASSICURAZIONI S.P.A, Allianz SE, Liberty Mutual Insurance, AXA, Mapfre S.A., State Farm Mutual Automobile Insurance Company, American International Group, Inc., Nationwide Mutual Insurance Company, Tata AIG, UbiCar, Takaful Islami Insurance Ltd., Pragati Insurance Company Limited, PingJia Technology, Insure The Box, Aviva Group, Octo Group S.p.A, Teltonika Telematics, ARCUS S.A, T-matic Systems S.A, Cefin Romania Systems, Cambridge Mobile Telematics, Zubie, Inc., Modus Group, LLC, Metromile Inc., Amica Mutual Insurance Company, Sierra Wireless, Intact Financial Corporation, TrueMotion, CAA insurance, The Co-operators Group Limited, Desjardins Insurance, EnVue Telematics, Aon Risk Services Argentina S.A, TTMS Argentina S.A, Lockton Brasil Corretora de Seguros Ltda, Uai Brazil Insurance Broker, ALC Corretora de Seguros, Marsh Brasil - EZ Towers, Abu Dhabi National Takaful Company, Oman Insurance Company, Wehbe Insurance Services LLC, Al Sagr National Insurance Company, Noor Takaful Insurance, Adamjee Insurance Company Limited, Old Mutual PLC, Santam, MiWay Insurance, Hollard Group, Carrier Insurance Brokers, Glanvills Enthoven.

North America was the largest region in the usage-based insurance (UBI) market in 2023. The regions covered in the usage-based insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the usage-based insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Vehicle types in usage-based insurance include light-duty vehicles (LDV) and heavy-duty vehicles (HDV). LDVs encompass passenger cars with a maximum gross vehicle weight of less than 8500 lbs. Various technologies such as OBD-II-based UBI programs, smartphone-based UBI programs, black-box-based UBI programs, and others are used in different packages such as pay-as-you-drive (PAYD), pay-how-you-drive (PHYD), and manage-how-you-drive (MHYD).

The usage-based insurance market research report is one of a series of new reports that provides usage-based insurance market statistics, including usage-based insurance industry global market size, regional shares, competitors with a usage-based insurance market share, detailed usage-based insurance market segments, market trends and opportunities, and any further data you may need to thrive in the usage-based insurance industry. This usage-based insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The usage-based insurance market includes revenues earned by entities by driving-based and milage-based insurance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.


The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.