New Energy Vehicle (NEV) Insurance Market Report 2026

The new energy vehicle (nev) insurance market size has grown exponentially in recent years. It will grow from $18.32 billion in 2025 to $23.79 billion in 2026 at a compound annual growth rate (CAGR) of 29.9%. The growth in the historic period can be attributed to increasing penetration of electric and hybrid vehicles, expansion of public charging infrastructure, rising awareness of ev-specific risk profiles, early insurer participation in ev ecosystems, supportive government incentives for ev adoption.

The new energy vehicle (nev) insurance market size is expected to see exponential growth in the next few years. It will grow to $67.05 billion in 2030 at a compound annual growth rate (CAGR) of 29.6%. The growth in the forecast period can be attributed to growing ev fleet size globally, increasing demand for personalized insurance products, expansion of connected vehicle data usage, rising integration of ai-based underwriting, development of standardized ev repair cost frameworks. Major trends in the forecast period include increasing adoption of ev-specific insurance policies, rising use of usage-based and telematics insurance models, growing coverage customization for battery and charging risks, expansion of digital-first insurance distribution channels, enhanced focus on data-driven risk assessment.

The growing adoption of electric vehicles (EVs) is expected to drive the expansion of the new energy vehicle (NEV) insurance market in the coming years. Electric vehicles are cars powered by electric motors that use rechargeable batteries or fuel cells instead of internal combustion engines, offering benefits such as lower emissions, improved energy efficiency, and decreased reliance on fossil fuels. This increased adoption is fueled by rising environmental concerns, as EVs help reduce emissions and contribute to tackling air pollution and climate change. NEV insurance supports EV owners by providing specialized coverage tailored to their distinct components, including batteries and charging equipment. It enhances the ownership experience by protecting against EV-specific risks, streamlining claims, and improving overall vehicle management. For example, in 2024, the International Energy Agency, a France-based intergovernmental organization, reported that electric car sales reached 3.5 million in 2023, marking a 35% year-on-year increase from 2022. Thus, the increasing use of electric vehicles is propelling growth in the new energy vehicle (NEV) insurance market.

Key players in the new energy vehicle (NEV) insurance market are concentrating on developing sophisticated solutions such as digital car insurance platforms to improve customer experience, simplify claims processes, and offer personalized policy options that align with electric vehicle usage patterns. These platforms allow users to buy, manage, and file claims for car insurance entirely online, typically through websites or mobile apps, aiming to streamline the insurance process by providing faster quotes, flexible plans, and AI-powered customer support. For instance, in October 2023, SunCar Technology Group Inc., a technology firm based in China, introduced an online insurance solution exclusively for customers of Li Auto Inc. This service enables owners to quickly compare and purchase insurance within the Li Auto app, offering seamless convenience and rapid transaction handling. This integration is designed to make insurance the default and most convenient option for Li Auto owners, thereby boosting customer satisfaction and generating repeat business for SunCar.

In June 2024, Cheche Group Inc., a China-based insurance company, partnered with NIO Insurance Broker Co., Ltd. to digitize NIO’s auto insurance operations and streamline policy management. The collaboration aims to improve operational efficiency, reduce costs, and enhance the customer experience through advanced digital technologies. NIO Insurance Broker Co., Ltd. is a China-based insurance brokerage specializing in customized new energy vehicle (NEV) insurance solutions.

Major companies operating in the new energy vehicle (nev) insurance market are Ping An Group, Allianz SE, State Farm Mutual Automobile Insurance Company, AXA SA, BYD Property & Casualty Insurance Co. Ltd., China Pacific Insurance Group, The Allstate Corporation, Liberty Mutual Group, Tokio Marine Holdings Inc., Zurich Insurance Group, Chubb Limited, Travelers, MAPFRE S.A., ZhongAn Online Property and Casualty Insurance Co. Ltd., Direct Line Group, ACKO General Insurance Limited, Bajaj Allianz General Insurance Company Limited, Admiral Group plc., HDFC ERGO General Insurance Company Limited, Nationwide Mutual Insurence Company, United Services Automobile Association(USAA), Tesla Insurance Services Inc.

Asia-Pacific was the largest region in the new energy vehicle (NEV) insurance market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the new energy vehicle (nev) insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the new energy vehicle (nev) insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The new energy vehicle (NEV) insurance market includes revenues earned by entities through vehicle damage coverage, battery and charging equipment insurance, usage-based insurance, roadside assistance, and specialized repair and maintenance support tailored for electric and hybrid vehicles. 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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