Off - Road Vehicle Insurance Market Report 2025

The off-road vehicle insurance market size has grown strongly in recent years. It will grow from $1.86 billion in 2024 to $2.01 billion in 2025 at a compound annual growth rate (CAGR) of 8.2%. The growth during the historic period can be attributed to the increased use of off-road vehicles in farming and forestry, the rising customization of ATVs with aftermarket parts, growth in off-road motorsports and trail events, heightened demand for seasonal or temporary insurance coverage, and greater integration of GPS and anti-theft technologies in off-road vehicles.

The off-road vehicle insurance market size is expected to see strong growth in the next few years. It will grow to $2.72 billion in 2029 at a compound annual growth rate (CAGR) of 7.9%. In the forecast period, growth is expected to be driven by the growing adoption of electric off-road vehicles, expansion of digital insurance platforms, rising demand for usage-based insurance models, increasing popularity of adventure tourism, and a stronger emphasis on rider safety and training programs. Key trends include advancements in telematics-based policy pricing, development of AI-powered claims processing tools, innovation in bundled insurance products combined with vehicle sales, improvements in mobile-first insurance platforms, and the creation of real-time risk assessment models.

The off-road vehicle insurance market is expected to grow due to the rising popularity of recreational activities, which is increasing demand for financial protection during adventurous use. Recreational activities include outdoor leisure pursuits such as off-roading, trail riding, and camping. This surge is largely driven by a growing consumer interest in outdoor lifestyles and exploration of nature as a way to break from urban routines. Off-road vehicle insurance provides coverage for damages, theft, and liability while using vehicles on rugged terrain, offering financial security and peace of mind for enthusiasts. For example, the Outdoor Industry Association, a U.S.-based trade group promoting the outdoor recreation economy, reported that in 2.02 trillion people in the U.S. participated in outdoor recreation - a record high and a 2.3% increase from 2021. As a result, the growing enthusiasm for recreational activities is boosting the off-road vehicle insurance market.

The growth of the off-road vehicle insurance market is being driven by the rising number of off-highway vehicle (OHV) fatalities, which highlight increasing accident risks and the need for safety coverage. OHV fatalities refer to deaths caused by accidents involving vehicles used off paved roads, such as ATVs, UTVs, and dirt bikes. This increase in fatalities is attributed to the growing recreational use of OHVs in rural and mountainous areas, where riders often face dangerous terrains and limited supervision. Off-road vehicle insurance promotes safer driving by encouraging compliance with safety regulations and responsible behavior, while providing coverage that incentivizes riders to take precautions and help reduce OHV-related deaths. For example, the U.S. Consumer Product Safety Commission (CPSC), a federal agency focused on public safety, reported 2,509 fatalities related to off-highway vehicle incidents as of September 2024. Consequently, the rising OHV fatalities are contributing to the expansion of the off-road vehicle insurance market.

In January 2025, Sentry Insurance, a U.S.-based insurer, acquired The General from American Family Insurance for $1.7 billion. This acquisition is intended to strengthen Sentry’s presence in the non-standard auto insurance market and improve its customer service capabilities. American Family Insurance, also based in the U.S., provides insurance coverage for off-road vehicles and ATVs.

Major players in the off-road vehicle insurance market are State Farm Mutual Automobile Insurance Company, Nationwide Mutual Insurance Company, Liberty Mutual Insurance, Allstate Insurance Company, Progressive Corporation, USAA Insurance Agency, Suzuki Motor Corporation, The Hartford, Farmers Insurance Group, Yamaha Motor Corporation, American Family Insurance, Auto-Owners Insurance, Polaris Inc., The Hanover Insurance Group Inc., MAPFRE S.A., Shriram General Insurance, Insurance Incorporated, Zurich Kotak General Insurance Company (India) Limited, Erie Insurance Group, American Honda Insurance Solutions LLC, RSI Agency Inc.

North America was the largest region in the off-road vehicle insurance market in 2024. The regions covered in off-road vehicle insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the off-road vehicle insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Off-road vehicle insurance is a specialized form of motor insurance that provides coverage for vehicles primarily used off public roads. It protects against risks such as accidents, theft, and damage that may occur during recreational or utility use in rugged terrains. This insurance is often necessary for engaging in off-road activities, operating on private property, or obtaining vehicle financing.

The primary types of off-road vehicle insurance policies include standard policies and custom policies. A standard policy is a predefined insurance plan that offers essential coverage tailored to typical vehicle owners’ needs. It includes various coverage options such as liability, collision, comprehensive, uninsured or underinsured motorist coverage, and more, covering vehicles such as all-terrain vehicles, dirt bikes, snowmobiles, utility task vehicles, and others. These policies are distributed through multiple channels, including online platforms, insurance agents or brokers, direct response, and more, and serve a range of end users, from individuals to commercial customers.

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

The off-road vehicle insurance market includes revenues earned by entities through premium collection, claims management services, risk assessment tools, policy underwriting, and value-added services. 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.

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