Car insurance market to reach $2.13t by 2026

The sector expected to expand at a 6.05% compound annual rate through 2031.

Global motor insurance premiums are expected to continue rising over the next five years, supported by steady demand and higher pricing, according to a report by CoinLaw.

Data shows the global car insurance market is projected to reach $2.13t in 2026 and grow to $2.86t by 2031, reflecting a compound annual growth rate (CAGR) of 6.05%. 

Separately, the global motor insurance market was valued at $976.1b in 2025 and is forecast to expand to $1.75t by 2034, growing at a 6.70% CAGR from 2026 onwards.

At the same time, insurers are increasing their use of artificial intelligence (AI) across underwriting and claims. 

Global AI in insurance revenue is estimated at $26.3b this year and is projected to reach $114.52b by 2031, representing a 34.2% CAGR.

Industry surveys indicate that most large insurers are either piloting or implementing AI tools in underwriting and claims workflows, although full adoption varies by market and company size. 

AI-powered virtual agents and chatbots are now handling between 60% and 80% of initial claims-related customer contacts.

Usage-based insurance is also expanding as telematics adoption increases. The global usage-based insurance market is projected to reach about $243.32b by 2030, growing at an annual rate of around 23.1%.