The Europe motor insurance market reached around USD 271.19 Billion in 2025. The market is projected to grow at a CAGR of 6.80% between 2026 and 2035 to reach nearly USD 523.58 Billion by 2035.
Base Year
Historical Period
Forecast Period
In 2020, motor insurance premiums represented 36% of the total property and casualty insurance market in Europe, amounting to €149 billion.
In 2023, the European Union reported a surplus of €90.6 billion in the trade of new automobiles.
The European Union solidified its position as the world's second-largest automobile producer, with a total output of 12.1 million units, marking an increase of over 11% in 2023.
Compound Annual Growth Rate
6.8%
Value in USD Billion
2026-2035
*this image is indicative*
| Europe Motor Insurance Market Report Summary | Description | Value |
| Base Year | USD Billion | 2025 |
| Historical Period | USD Billion | 2019-2025 |
| Forecast Period | USD Billion | 2026-2035 |
| Market Size 2025 | USD Billion | 271.19 |
| Market Size 2035 | USD Billion | 523.58 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 6.80% |
| CAGR 2026-2035 - Market by Country | United Kingdom | 7.4% |
| CAGR 2026-2035 - Market by Country | Germany | 7.0% |
| CAGR 2026-2035 - Market by Type | Commercial Motor Insurance | 7.3% |
| CAGR 2026-2035 - Market by Policy Type | Comprehensive Motor Insurance | 7.7% |
| 2025 Market Share by Country | Italy | 11.8% |
In 2023, new car sales in the European Union experienced a remarkable increase of nearly 14%, reaching a total of 10.5 million units. When considering new passenger vehicle registrations across Europe, which includes the EU, the United Kingdom, and EFTA countries, the figure surpassed 12.8 million, marking a similar growth of approximately 14%. Germany maintained its position as the largest car market in Europe for the year. This surge in automotive sales has resulted in a heightened demand for motor insurance, consequently leading to an increase in premiums. As the number of vehicles on the road rises, so does the likelihood of accidents and insurance claims, prompting insurers to revise their rates.
In 2024, the valuation of the car insurance sector in the UK stands at £21.9 billion, representing a 14.6% growth compared to 2023. As of the third quarter of 2022, the average expense for car insurance in the UK stands at £511, reflecting an increase of approximately 7% since the beginning of 2023. Furthermore, the introduction of new car models typically entails higher values and repair costs, which contribute to the overall rise in insurance expenses. This trend underscores the increasing necessity for financial protection as the volume of insured vehicles continues to grow.
The growing number of vehicles, higher traffic density in urban areas, rising environmental concerns, and technological advancements in the automotive sector are the major trends influencing the Europe motor insurance market expansion
Advancements in technology, particularly in the fields of telematics and connected vehicles, are significantly transforming the landscape of the insurance sector. These innovations are not only reshaping traditional insurance frameworks but also introducing new paradigms for how premiums are calculated and how risks are assessed.
The growing demand for environmentally friendly vehicles and sustainable practices is reshaping various sectors, including the insurance sector. As consumers increasingly prioritise eco-conscious choices, insurance companies are adapting their policies to align with this shift and incentivising electric and hybrid vehicles.
The increasing awareness of the benefits that come with comprehensive insurance coverage is significantly driving the demand for more tailored and extensive insurance products. As individuals and businesses alike become more informed about the potential risks they face, they are seeking out insurance options that not only cover a wider range of scenarios but also cater to their specific needs and circumstances.
The market is undergoing a significant transformation, driven by a notable shift in consumer behaviour. More individuals are gravitating towards online platforms for both the acquisition and management of insurance policies. This growing trend can be attributed to several factors, including the convenience, accessibility, and efficiency that digital solutions offer.
"Europe Motor Insurance Market Report and Forecast 2026-2035" offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Market Breakup by Policy Type
Market Breakup by Distribution Channel
Market Breakup by Country
| CAGR 2026-2035 - Market by | Country |
| United Kingdom | 7.4% |
| Germany | 7.0% |
| France | XX% |
| Italy | XX% |
| Others | XX% |
Based on region, the market is segmented into the United Kingdom, Germany, France, and Italy, among others. The United Kingdom is projected to grow at a CAGR of 7.4% between 2026 and 2035 as sales of new vehicles in the country rise. The UK is one of the most dynamic insurance markets in the world, prompting leading companies to expand their offerings in the region.
Major players are focusing on the adoption of digital and mobile platforms to gain a competitive edge in the market.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the market attained a value of nearly USD 271.19 Billion.
The market is assessed to grow at a CAGR of 6.80% between 2026 and 2035.
The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach about USD 523.58 Billion by 2035.
The market is being driven by the expansion of the automotive sector, swift urbanisation, and rising density of urban traffic.
The key trends aiding the market expansion include the adoption of digital platforms for insurance and increasing consumer awareness of the insurance market.
The major types of insurance in the market are personal motor insurance and commercial motor insurance.
The major countries considered in the market are the United Kingdom, Germany, France, and Italy, among others.
The major players in the market are AXA SA, GEICO, Liberty Mutual Insurance, Allianz SE, Admiral Group plc, Assicurazioni Generali SpA, Chubb Group Holdings Inc., Nationwide Mutual Insurance Company, Royal & Sun Alliance Insurance Ltd, and Liverpool Victoria, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Policy Type |
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| Breakup by Distribution Channel |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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