EV Insurance Market to Grow with a CAGR of 15.38% Globally through 2028

Increasing commercialization of the EV industry and the development of new EV insurance products and services are factors driving the global EV Insurance market in the forecast period 2024-2028.

According to TechSci Research report, “Global EV Insurance Market - Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the Global EV Insurance Market stood at USD 53.34 billion in 2022 and is anticipated to grow with a CAGR of 15.38% in the forecast period, 2024-2028. Global EV insurance is an evolving sector within the insurance industry, shaped by the rapid growth of electric vehicles (EVs) worldwide. Insurers are adapting to the unique risks and needs of EV owners, offering specialized coverage for components like batteries and charging equipment. Innovative policies, including usage-based insurance and incentives for eco-friendly driving, promote sustainability and responsible behavior among policyholders. Insurers are forming partnerships with automakers and charging network operators to enhance services. Challenges include staying updated on evolving EV technology and assessing battery-related risks. With the continued expansion of the EV market, global EV insurance plays a vital role in supporting the transition to sustainable transportation. One of the defining trends in global EV insurance is the shift towards personalized policies, often facilitated by usage-based insurance (UBI) programs. These programs leverage telematics and IoT technology to monitor individual driving behavior, allowing insurers to tailor coverage and premiums to each driver's specific habits. For EV owners, this means policies based on actual usage, rewarding responsible driving behaviors such as efficient acceleration and braking. UBI not only aligns with sustainability goals but also offers financial incentives, potentially reducing premiums for eco-conscious EV drivers. Insurers are increasingly forming partnerships and collaborations with various stakeholders in the EV ecosystem. This includes automakers, charging network operators, and even government agencies. By teaming up with automakers, insurers can integrate insurance offerings seamlessly into the EV purchasing process. This provides buyers with a one-stop solution for both their vehicle and insurance needs. Collaborations with charging network operators help address risks associated with charging infrastructure, such as accidents or equipment damage. Additionally, insurers can work with governments to bundle insurance with incentives, promoting EV adoption and responsible driving practices.

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Electric vehicles come with their own set of unique risks, primarily centered around the EV battery and advanced technology. Insurers are developing specialized coverage to address these concerns. Battery damage coverage is crucial, as replacing or repairing EV batteries can be a significant expense. Policies are being designed to cover battery-related issues resulting from accidents, overheating, or other technical problems. Additionally, insurers consider the higher repair costs associated with EV technology, covering components like electric motors, control systems, and specialized EV charging equipment. The global EV Insurance market is segmented into vehicle type, application, provider, regional distribution, and company. Based on application, the market is segmented into personal, commercial. The commercial segment is the fastest-growing sector in the global EV insurance market. With businesses increasingly adopting electric vehicles for their fleets, insurers are tailoring coverage to meet commercial needs. Policies encompassing multiple EVs, commercial charging infrastructure, and specialized coverage for business-related activities are in high demand. As governments and corporations worldwide emphasize sustainability, commercial EV insurance supports this transition by providing comprehensive protection, ensuring business continuity, and contributing to environmental goals. This rapid growth in commercial EV insurance reflects the industry's commitment to facilitating the green evolution of corporate transportation.

Major companies operating in Global EV Insurance Market are:

• Esure Group plc
• Lemonade, Inc.
• Allstate Insurance Company
• Acko General Insurance Limited
• Progressive Casualty Insurance Company
• Allianz SE
• Bajaj Allianz General Insurance Company
• HDFC ERGO
• AXA
• Beinsure Digital Media

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“Global electric vehicle (EV) insurance is a rapidly evolving market segment driven by the surging adoption of EVs worldwide. Key drivers include the need to address unique EV risks such as battery damage, advanced technology, and charging infrastructure incidents. Trends encompass personalized policies via usage-based insurance, partnerships with automakers and charging networks, coverage for battery degradation, and incentives for eco-friendly driving. Challenges include adapting to evolving EV technology, insufficient actuarial data, complex battery-related risks, and concerns related to charging infrastructure and range anxiety. Asia Pacific dominates this market due to high EV adoption and concentrated EV production,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

“EV Insurance Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (New Vehicle, Used Vehicle),  By Application (Personal, Commercial), By Provider (Insurance Companies, Banks, Insurance Agents/ Brokers, Others), By Region, Competition”, has evaluated the future growth potential of global EV Insurance market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the global EV Insurance market.

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