Usage-Based Insurance for Automotive Market Size, Share, Trends, Industry Analysis Report: By Type, Technology, Vehicle, and Region

Description

List of Tables

The global usage-based insurance for automotive market size is expected to reach USD 570.44 billion by 2034, according to a new study by Polaris Market Research. The report "Usage-Based Insurance for Automotive Market Size, Share, Trends, Industry Analysis Report: By Type, Technology, Vehicle (Passenger Auto and Commercial Auto), and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Market Forecast, 2025-2034" gives a detailed insight into current market dynamics and provides analysis on future market growth.

Usage-based insurance (UBI) for automotive is a policy model where premiums are determined by the actual usage of the vehicle, often tracked through telematics devices that monitor factors such as driving behavior, distance, speed, and time of day. This innovative approach to insurance has gained traction due to its potential to offer tailored premiums based on individual driving patterns, making it more attractive to consumers who prioritize flexibility and cost-effectiveness.

The usage-based insurance for automotive market is experiencing robust growth, driven by the increasing adoption of telematics and connected car technology, which enables insurers to gather accurate data to assess risk and adjust premiums accordingly. This shift toward data-driven decision-making is also encouraged by regulatory frameworks aimed at improving road safety and reducing accidents, contributing to market expansion. Furthermore, the rising popularity of electric vehicles (EVs) and shared mobility services has created new opportunities for UBI models to thrive, as these segments require more flexible and dynamic insurance solutions.

Usage-based insurance for automotive industry trends indicate a growing emphasis on driver safety, with insurers offering discounts for safe driving behaviors. Consumer awareness of UBI's potential benefits is growing as more drivers are opting for policies that provide incentives for safe and efficient driving. The increased focus on sustainability, along with demand for more personalized insurance experiences, is accelerating the UBI for automotive market expansion. Moreover, the evolving UBI market dynamics provide ample opportunities for insurers to explore innovative pricing models, creating potential for growth in both established and emerging markets.

Usage-Based Insurance for Automotive Market Report Highlights

In terms of type, the pay-how-you-drive (PHYD) segment dominated the usage-based insurance for automotive market share in 2024 due to its ability to offer highly personalized premium structures based on real-time driving behavior.

Based on vehicle, the passenger auto segment accounted for a larger market share in 2024 due to the rapid adoption of telematics-based insurance among private vehicle owners.

In 2024, North America accounted for the largest market share due to the widespread adoption of telematics and strong regulatory support.

The Europe usage-based insurance for automotive market is expected to witness substantial growth during the forecast period due to stringent emission regulations and increasing EV adoption.

A few of the global key market players are Allianz; Allstate Insurance Company; American International Group, Inc.; Assicurazioni Generali S.p.A.; AXA; insurethebox; Liberty Mutual Insurance; MAPFRE; Progressive Casualty Insurance Company; and State Farm Mutual Automobile Insurance Company.

Polaris Market Research has segmented the usage-based insurance for automotive market report on the basis of type, technology, vehicle, and region:

By Type Outlook (Revenue - USD Billion, 2020-2034)

Pay-As-You-Drive (PAYD)
Pay-How-You-Drive (PHYD)
Manage-How-You-Drive (MHYD)

By Technology Outlook (Revenue - USD Billion, 2020-2034)

OBD II
Black Box
Smartphones
Others

By Vehicle Outlook (Revenue - USD Billion, 2020-2034)

Passenger Auto
Commercial Auto

By Regional Outlook (Revenue - USD Billion, 2020-2034)

North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Netherlands
Russia
Rest of Europe
Asia Pacific
China
Japan
India
Malaysia
South Korea
Indonesia
Australia
Vietnam
Rest of Asia Pacific
Middle East & Africa
Saudi Arabia
UAE
Israel
South Africa
Rest of Middle East & Africa
Latin America
Mexico
Brazil
Argentina
Rest of Latin America

Product Code: PM5448

1. Introduction

1.1. Report Description
- 1.1.1. Objectives of the Study
- 1.1.2. Market Scope
- 1.1.3. Assumptions
1.2. Stakeholders

2. Executive Summary

2.1. Market Highlights

3. Research Methodology

3.1. Overview
- 3.1.1. Data Mining
3.2. Data Sources
- 3.2.1. Primary Sources
- 3.2.2. Secondary Sources

4. Global Usage-based Insurance for Automotive Market Insights

4.1. Usage-based Insurance for Automotive Market - Market Snapshot
4.2. Usage-based Insurance for Automotive Market Dynamics
- 4.2.1. Drivers and Opportunities
  - 4.2.1.1. Regulatory Support and Safety Initiatives
  - 4.2.1.2. Rising Adoption of Electric and Shared Mobility
- 4.2.2. Restraints and Challenges
  - 4.2.2.1. Consumer Awareness and Acceptance
4.3. Porter's Five Forces Analysis
- 4.3.1. Bargaining Power of Suppliers (Moderate)
- 4.3.2. Threats of New Entrants: (Low)
- 4.3.3. Bargaining Power of Buyers (Moderate)
- 4.3.4. Threat of Substitute (Moderate)
- 4.3.5. Rivalry among existing firms (High)
4.4. PESTEL Analysis
4.5. Usage-based Insurance for Automotive Market Trends
4.6. Value Chain Analysis

5. Global Usage-based Insurance for Automotive Market, by Type

5.1. Key Findings
5.2. Introduction
- 5.2.1. Global Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
5.3. Pay-As-You-Drive (PAYD)
- 5.3.1. Global Usage-based Insurance for Automotive Market, by Pay-As-You-Drive (PAYD), by Region, 2020-2034 (USD Billion)
5.4. Pay-How-You-Drive (PHYD)
- 5.4.1. Global Usage-based Insurance for Automotive Market, by Pay-How-You-Drive (PHYD), by Region, 2020-2034 (USD Billion)
5.5. Manage-How-You-Drive (MHYD)
- 5.5.1. Global Usage-based Insurance for Automotive Market, by Manage-How-You-Drive (MHYD), by Region, 2020-2034 (USD Billion)

6. Global Usage-based Insurance for Automotive Market, by Technology

6.1. Key Findings
6.2. Introduction
- 6.2.1. Global Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
6.3. OBD II
- 6.3.1. Global Usage-based Insurance for Automotive Market, by OBD II, by Region, 2020-2034 (USD Billion)
6.4. Black Box
- 6.4.1. Global Usage-based Insurance for Automotive Market, by Black Box, by Region, 2020-2034 (USD Billion)
6.5. Smartphones
- 6.5.1. Global Usage-based Insurance for Automotive Market, by Smartphones, by Region, 2020-2034 (USD Billion)
6.6. Others
- 6.6.1. Global Usage-based Insurance for Automotive Market, by Others, by Region, 2020-2034 (USD Billion)

7. Global Usage-based Insurance for Automotive Market, by Vehicle

7.1. Key Findings
7.2. Introduction
- 7.2.1. Global Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
7.3. Passenger Auto
- 7.3.1. Global Usage-based Insurance for Automotive Market, by Passenger Auto, by Region, 2020-2034 (USD Billion)
7.4. Commercial Auto
- 7.4.1. Global Usage-based Insurance for Automotive Market, by Commercial Auto, by Region, 2020-2034 (USD Billion)

8. Global Usage-based Insurance for Automotive Market, by Geography

8.1. Key Findings
8.2. Introduction
- 8.2.1. Usage-based Insurance for Automotive Market Assessment, By Geography, 2020-2034 (USD Billion)
8.3. Usage-based Insurance for Automotive Market - North America
- 8.3.1. North America: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
- 8.3.2. North America: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
- 8.3.3. North America: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.3.4. Usage-based Insurance for Automotive Market - US
  - 8.3.4.1. US: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.3.4.2. US: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.3.4.3. US: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.3.5. Usage-based Insurance for Automotive Market - Canada
  - 8.3.5.1. Canada: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.3.5.2. Canada: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.3.5.3. Canada: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
8.4. Usage-based Insurance for Automotive Market - Europe
- 8.4.1. Europe: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
- 8.4.2. Europe: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
- 8.4.3. Europe: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.4.4. Usage-based Insurance for Automotive Market - UK
  - 8.4.4.1. UK: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.4.4.2. UK: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.4.4.3. UK: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.4.5. Usage-based Insurance for Automotive Market - France
  - 8.4.5.1. France: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.4.5.2. France: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.4.5.3. France: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.4.6. Usage-based Insurance for Automotive Market - Germany
  - 8.4.6.1. Germany: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.4.6.2. Germany: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.4.6.3. Germany: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.4.7. Usage-based Insurance for Automotive Market - Italy
  - 8.4.7.1. Italy: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.4.7.2. Italy: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.4.7.3. Italy: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.4.8. Usage-based Insurance for Automotive Market - Spain
  - 8.4.8.1. Spain: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.4.8.2. Spain: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.4.8.3. Spain: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.4.9. Usage-based Insurance for Automotive Market - Netherlands
  - 8.4.9.1. Netherlands: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.4.9.2. Netherlands: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.4.9.3. Netherlands: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.4.10. Usage-based Insurance for Automotive Market - Russia
  - 8.4.10.1. Russia: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.4.10.2. Russia: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.4.10.3. Russia: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.4.11. Usage-based Insurance for Automotive Market - Rest of Europe
  - 8.4.11.1. Rest of Europe: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.4.11.2. Rest of Europe: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.4.11.3. Rest of Europe: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
8.5. Usage-based Insurance for Automotive Market - Asia Pacific
- 8.5.1. Asia Pacific: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
- 8.5.2. Asia Pacific: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
- 8.5.3. Asia Pacific: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.5.4. Usage-based Insurance for Automotive Market - China
  - 8.5.4.1. China: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.5.4.2. China: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.5.4.3. China: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.5.5. Usage-based Insurance for Automotive Market - India
  - 8.5.5.1. India: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.5.5.2. India: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.5.5.3. India: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.5.6. Usage-based Insurance for Automotive Market - Malaysia
  - 8.5.6.1. Malaysia: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.5.6.2. Malaysia: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.5.6.3. Malaysia: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.5.7. Usage-based Insurance for Automotive Market - Japan
  - 8.5.7.1. Japan: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.5.7.2. Japan: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.5.7.3. Japan: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.5.8. Usage-based Insurance for Automotive Market - Indonesia
  - 8.5.8.1. Indonesia: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.5.8.2. Indonesia: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.5.8.3. Indonesia: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.5.9. Usage-based Insurance for Automotive Market - South Korea
  - 8.5.9.1. South Korea: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.5.9.2. South Korea: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.5.9.3. South Korea: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.5.10. Usage-based Insurance for Automotive Market - Australia
  - 8.5.10.1. Australia: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.5.10.2. Australia: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.5.10.3. Australia: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.5.11. Usage-based Insurance for Automotive Market - Rest of Asia Pacific
  - 8.5.11.1. Rest of Asia Pacific: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.5.11.2. Rest of Asia Pacific: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.5.11.3. Rest of Asia Pacific: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
8.6. Usage-based Insurance for Automotive Market - Middle East & Africa
- 8.6.1. Middle East & Africa: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
- 8.6.2. Middle East & Africa: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
- 8.6.3. Middle East & Africa: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.6.4. Usage-based Insurance for Automotive Market - Saudi Arabia
  - 8.6.4.1. Saudi Arabia: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.6.4.2. Saudi Arabia: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.6.4.3. Saudi Arabia: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.6.5. Usage-based Insurance for Automotive Market - UAE
  - 8.6.5.1. UAE: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.6.5.2. UAE: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.6.5.3. UAE: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.6.6. Usage-based Insurance for Automotive Market - Israel
  - 8.6.6.1. Israel: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.6.6.2. Israel: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.6.6.3. Israel: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.6.7. Usage-based Insurance for Automotive Market - South Africa
  - 8.6.7.1. South Africa: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.6.7.2. South Africa: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.6.7.3. South Africa: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.6.8. Usage-based Insurance for Automotive Market - Rest of Middle East & Africa
  - 8.6.8.1. Rest of Middle East & Africa: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.6.8.2. Rest of Middle East & Africa: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.6.8.3. Rest of Middle East & Africa: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
8.7. Usage-based Insurance for Automotive Market - Latin America
- 8.7.1. Latin America: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
- 8.7.2. Latin America: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
- 8.7.3. Latin America: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.7.4. Usage-based Insurance for Automotive Market - Mexico
  - 8.7.4.1. Mexico: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.7.4.2. Mexico: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.7.4.3. Mexico: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.7.5. Usage-based Insurance for Automotive Market - Brazil
  - 8.7.5.1. Brazil: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.7.5.2. Brazil: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.7.5.3. Brazil: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.7.6. Usage-based Insurance for Automotive Market - Argentina
  - 8.7.6.1. Argentina: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.7.6.2. Argentina: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.7.6.3. Argentina: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)
- 8.7.7. Usage-based Insurance for Automotive Market - Rest of Latin America
  - 8.7.7.1. Rest of Latin America: Usage-based Insurance for Automotive Market, by Type, 2020-2034 (USD Billion)
  - 8.7.7.2. Rest of Latin America: Usage-based Insurance for Automotive Market, by Technology, 2020-2034 (USD Billion)
  - 8.7.7.3. Rest of Latin America: Usage-based Insurance for Automotive Market, by Vehicle, 2020-2034 (USD Billion)

9. Competitive Landscape

9.1. Expansion and Acquisition Analysis
- 9.1.1. Expansion
- 9.1.2. Acquisitions
9.2. Partnerships/Collaborations/Agreements/Exhibitions

10. Company Profiles

10.1. Allianz
- 10.1.1. Company Overview
- 10.1.2. Financial Performance
- 10.1.3. Product Benchmarking
- 10.1.4. Recent Development
10.2. Allstate Insurance Company
- 10.2.1. Company Overview
- 10.2.2. Financial Performance
- 10.2.3. Product Benchmarking
- 10.2.4. Recent Development
10.3. American International Group, Inc.
- 10.3.1. Company Overview
- 10.3.2. Financial Performance
- 10.3.3. Product Benchmarking
- 10.3.4. Recent Development
10.4. Assicurazioni Generali S.p.A.
- 10.4.1. Company Overview
- 10.4.2. Financial Performance
- 10.4.3. Product Benchmarking
- 10.4.4. Recent Development
10.5. AXA
- 10.5.1. Company Overview
- 10.5.2. Financial Performance
- 10.5.3. Product Benchmarking
- 10.5.4. Recent Development
10.6. insurethebox
- 10.6.1. Company Overview
- 10.6.2. Financial Performance
- 10.6.3. Product Benchmarking
- 10.6.4. Recent Development
10.7. Liberty Mutual Insurance
- 10.7.1. Company Overview
- 10.7.2. Financial Performance
- 10.7.3. Product Benchmarking
- 10.7.4. Recent Development
10.8. MAPFRE
- 10.8.1. Company Overview
- 10.8.2. Financial Performance
- 10.8.3. Product Benchmarking
- 10.8.4. Recent Development
10.9. Progressive Casualty Insurance Company
- 10.9.1. Company Overview
- 10.9.2. Financial Performance
- 10.9.3. Product Benchmarking
- 10.9.4. Recent Development
10.10. State Farm Mutual Automobile Insurance Company
- 10.10.1. Company Overview
- 10.10.2. Financial Performance
- 10.10.3. Product Benchmarking
- 10.10.4. Recent Development