Driver accident insurance market to reach $9.5b by 2029

Growth will likely be supported by the wider use of telematics in insurance products.

The driver accident insurance market is projected to increase from $6.15b in 2024 to $6.73b in 2025, reflecting a compound annual growth rate (CAGR) of 9.4%, reported Business Research Company.

The recent expansion has been driven by rising vehicle ownership, poor road safety infrastructure in developing economies, increasing medical costs from road accidents, limited public transport options in rural areas, and uneven access to emergency services.

Looking ahead, the market is expected to reach $9.51b by 2029, growing at a CAGR of 9.0%. 

Growth will likely be supported by the wider use of telematics in insurance products, greater adoption of behavior-based premium models, stronger financial protection for gig economy drivers, broader implementation of mandatory insurance laws, and the rollout of insurance products tailored for senior drivers.

Key trends expected to shape the market include advances in real-time accident detection, increased use of artificial intelligence for claims handling, the development of on-demand insurance apps for individual drivers, the rise of dynamic pricing models based on vehicle data, and new technology to detect and prevent fraud.