New Energy Vehicle (NEV) Insurance Market Report 2025

The new energy vehicle (NEV) insurance market size has grown exponentially in recent years. It will grow from $14.09 billion in 2024 to $18.32 billion in 2025 at a compound annual growth rate (CAGR) of 30%. The growth during the historic period can be attributed to increasing data availability from connected vehicles, the expanding adoption of telematics-based insurance, rising consumer demand for end-to-end digital claims processing, accelerating urbanization and smart city initiatives, and heightened concerns about climate change.

The new energy vehicle (NEV) insurance market size is expected to see exponential growth in the next few years. It will grow to $51.8 billion in 2029 at a compound annual growth rate (CAGR) of 29.7%. The projected growth in the forecast period is expected to result from the growing adoption of electric vehicles, increasing consumer awareness of environmental sustainability, rising investments in EV charging infrastructure, a growing need for customized coverage options, and the ongoing digitalization of insurance services. Key trends anticipated in the forecast period include advancements in battery technology, integration of telematics systems, developments in autonomous driving features, technology-driven predictive analytics, and improvements in vehicle connectivity.

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 players 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 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in new energy vehicle (NEV) insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the new energy vehicle (NEV) 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.

New energy vehicle (NEV) insurance is a specialized form of auto insurance designed specifically for electric vehicles (EVs), plug-in hybrids, and fuel cell vehicles. It offers protection against damages, theft, third-party liabilities, and unique risks such as battery damage or accidents at charging stations. NEV insurance provides customized financial coverage tailored to the distinct technological and operational features of these vehicles.

The primary types of NEV insurance include compulsory insurance and optional insurance. Compulsory insurance offers legally required coverage for specific risks. Coverage options encompass liability, comprehensive, collision, uninsured or underinsured motorist, and gap insurance. These policies are distributed through various channels, including insurance brokers, direct providers, online aggregators, agent intermediaries, and automobile dealerships. NEV insurance is applicable to hybrid electric vehicles (HEV), battery electric vehicles (BEV), fuel cell electric vehicles (FCEV), and others, serving a wide range of end-users such as individuals and commercial entities.

The new energy vehicle (NEV) insurance market research report is one of a series of new reports that provides new energy vehicle (NEV) insurance market statistics, including the new energy vehicle (NEV) insurance industry's global market size, regional shares, competitors with the new energy vehicle (NEV) insurance market share, detailed new energy vehicle (NEV) insurance market segments, market trends and opportunities, and any further data you may need to thrive in the new energy vehicle (NEV) insurance market. This new energy vehicle (NEV) 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 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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