Commercial Vehicle Insurance Market Report 2025

The commercial vehicle insurance market size has grown strongly in recent years. It will grow from $141.52 billion in 2024 to $151.98 billion in 2025 at a compound annual growth rate (CAGR) of 7.4%. The growth during the historic period can be attributed to increasing urban freight movement, greater use of diesel-powered heavy vehicles, rising demand for long-haul transportation, growing concerns over driver shortages, and increased reliance on third-party logistics providers.

The commercial vehicle insurance market size is expected to see strong growth in the next few years. It will grow to $199.46 billion in 2029 at a compound annual growth rate (CAGR) of 7%. The growth expected in the forecast period can be linked to the growing adoption of electric commercial vehicles, increased integration of telematics in insurance policies, rising investments in Insurtech platforms, growing demand for real-time risk assessment, and heightened focus on autonomous vehicle coverage. Key trends in the forecast period include advancements in real-time telematics-based premium models, development of AI-driven risk assessment algorithms, innovations in blockchain-enabled claims processing, progress in modular and customizable insurance products, and the creation of integrated EV-specific insurance solutions.

The growth of transportation services is expected to drive the expansion of the commercial vehicle insurance market. Transportation services involve the organized movement of people or goods via road, rail, air, or water, supporting both personal mobility and commercial logistics. This sector is expanding due to the rapid rise of e-commerce, which has increased the demand for efficient delivery and logistics systems to meet growing consumer expectations. Commercial vehicle insurance plays a crucial role by protecting businesses from financial losses related to accidents, theft, or vehicle damage during the transport of goods or passengers. It ensures business continuity and compliance with legal obligations. For example, in May 2025, the American Public Transportation Association reported that 7.7 billion trips were taken on public transportation in 2024, reflecting a 7% increase from 2023 and a 25% rise compared to 2022. This surge in transportation activity is contributing to the growth of the commercial vehicle insurance market.

Companies in the commercial vehicle insurance sector are introducing innovative products tailored for small businesses to provide accessible and comprehensive coverage. These insurance products are designed specifically for small enterprises that rely on vehicles for daily operations, offering protection against financial losses from accidents, theft, or damage. For example, in January 2025, Budget Direct Insurance, an Australia-based insurer, launched a new commercial vehicle insurance product in Singapore. This offering targets small businesses, contractors, tradespeople, and fleet operators using light goods vehicles such as vans, trucks, and lorries. The policy provides both comprehensive and third-party coverage and includes optional features such as 24-hour roadside assistance, a no-claim discount protector, and the flexibility to choose any workshop for vehicle repairs, allowing customers to tailor coverage to their needs.

In June 2024, Zurich Insurance Group, a Switzerland-based insurance provider, acquired a majority stake in Kotak General Insurance for an undisclosed amount. This acquisition aims to establish a leading general insurance company in India by combining Zurich’s global expertise and international reach with the Kotak Mahindra Group’s in-depth knowledge of the local market, regulatory environment, and customer base. The partnership is expected to broaden product offerings, enhance market penetration, and support growth in India’s dynamic general insurance sector. Kotak General Insurance Ltd. is an India-based provider of various general insurance services, including commercial vehicle liability insurance.

Major players in the commercial vehicle insurance market are Berkshire Hathaway Inc., AXA S.A., Allianz SE, Munich Re, The People's Insurance Company (Group) of China Limited, China Pacific Insurance (Group) Co. Ltd., American International Group Inc., The Progressive Corporation, Tokio Marine Holdings Inc., Talanx Aktiengesellschaft, Zurich Insurance Group Ltd., Chubb Limited, The Travelers Indemnity Company, Sompo Holdings Inc., MAPFRE S.A., The Hartford Financial Services Group Inc., QBE Insurance Group Limited, Auto-Owners Insurance Company, CNA Financial Corporation, Reliance General Insurance Company Limited, AmTrust Financial Services Inc.

North America was the largest region in the commercial vehicle insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in commercial vehicle insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the commercial 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.

Commercial vehicle insurance is a type of policy specifically designed to cover vehicles used for business purposes, providing protection against various risks such as accidents, theft, natural disasters, and third-party liabilities. It is essential for businesses to protect their transportation assets, ensure operational continuity, and comply with legal and regulatory obligations.

The main types of coverage in commercial vehicle insurance include liability coverage, physical damage coverage, medical payments coverage, uninsured or underinsured motorist coverage, and others. Liability coverage protects the policyholder from financial responsibility for bodily injuries or property damage caused to others in an at-fault accident. This coverage applies to various vehicle categories such as light commercial vehicles (LCVs), heavy commercial vehicles (HCVs), electric commercial vehicles, refrigerated trucks, and specialized vehicles. Distribution channels typically include agents or brokers, direct response, and others. The primary end users are individual owners, fleet operators, logistics companies, and public transport providers.

The commercial vehicle insurance market research report is one of a series of new reports that provides commercial vehicle insurance market statistics, including commercial vehicle insurance industry global market size, regional shares, competitors with a commercial vehicle insurance market share, detailed commercial vehicle insurance market segments, market trends and opportunities, and any further data you may need to thrive in the commercial vehicle insurance industry. This commercial vehicle 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 commercial vehicle insurance market includes revenues earned by entities by providing services such as third-party liability coverage, collision and comprehensive insurance, fleet risk management, claims processing, and telematics-based premium assessment. 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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