The North America Usage-based insurance Market would witness market growth of 24.6% CAGR during the forecast period (2023-2030).
This insurance is called telematics insurance, known for the insurance policy that analyses the premium based on vehicle usage or consumer driving behavior. User-based insurance encompasses a range of technological advancements, including smartphones, on-board diagnostic (OBD) II, and black boxes. It examines the reason for an accident effortlessly, improves customer loyalty, and reduces claim fraud. The growing adoption of this insurance among the end user, owing to its various features, such as providing accurate and timely data collection methods and flexible insurance premiums, boosts the expansion of the market.
In addition, factors such as the higher possibility of the vehicle being recovered in case of theft and lower fuel consumption have positively impacted the market's growth. This insurance found its initial foothold in the automotive sector, leveraging telematics devices to monitor driving behavior. These devices record data such as acceleration, braking, speed, and mileage, enabling insurers to tailor premiums based on individual risk profiles. The application extends beyond traditional auto insurance, encompassing commercial fleets and ridesharing services, fostering safer driving habits and reducing accident rates.
As per the Canada Energy Regulator, the total number of electric vehicles registered in Canada in 2021 amounted to 86,032, representing 5.3% of the overall vehicle registrations. Comparatively, 56,165 electric vehicles were registered in 2019 (2.9 percent). Quarterly electric vehicle (EV) registrations peaked in the first quarter of 2022 with 26,018 (7.7% of total registrations). Approximately 75% of newly registered electric vehicles are battery electric vehicles (BEVs), with the remaining portion comprising plug-in hybrid electric vehicles (PHEVs). UBI enables the implementation of dynamic pricing models for electric vehicles. Insurers can adjust premiums based on charging behavior, battery usage, and driving patterns. This dynamic approach aligns with the evolving nature of electric vehicle technology and usage. Thus, the above aspects will expand the market growth across the region in the upcoming years.
The US market dominated the North America Usage-Based Insurance Market by Country in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $37,814 Million by 2030. The Canada market is experiencing a CAGR of 27.4% during (2023 - 2030). Additionally, The Mexico market would exhibit a CAGR of 26.3% during (2023 - 2030).
Based on Vehicle Age, the market is segmented into New Vehicles, and Used Vehicles. Based on Policy, the market is segmented into Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), and Manage-How-You-Drive (MHYD). Based on Vehicle Type, the market is segmented into Light-Duty Vehicle (LDV), and Heavy-Duty Vehicle (HDV). Based on Technology, the market is segmented into Black Box, OBD (On-Board Diagnostics)-II, Smartphone, and Hybrid. Based on countries, the market is segmented into U.S., Mexico, Canada, and Rest of North America.
This insurance is called telematics insurance, known for the insurance policy that analyses the premium based on vehicle usage or consumer driving behavior. User-based insurance encompasses a range of technological advancements, including smartphones, on-board diagnostic (OBD) II, and black boxes. It examines the reason for an accident effortlessly, improves customer loyalty, and reduces claim fraud. The growing adoption of this insurance among the end user, owing to its various features, such as providing accurate and timely data collection methods and flexible insurance premiums, boosts the expansion of the market.
In addition, factors such as the higher possibility of the vehicle being recovered in case of theft and lower fuel consumption have positively impacted the market's growth. This insurance found its initial foothold in the automotive sector, leveraging telematics devices to monitor driving behavior. These devices record data such as acceleration, braking, speed, and mileage, enabling insurers to tailor premiums based on individual risk profiles. The application extends beyond traditional auto insurance, encompassing commercial fleets and ridesharing services, fostering safer driving habits and reducing accident rates.
As per the Canada Energy Regulator, the total number of electric vehicles registered in Canada in 2021 amounted to 86,032, representing 5.3% of the overall vehicle registrations. Comparatively, 56,165 electric vehicles were registered in 2019 (2.9 percent). Quarterly electric vehicle (EV) registrations peaked in the first quarter of 2022 with 26,018 (7.7% of total registrations). Approximately 75% of newly registered electric vehicles are battery electric vehicles (BEVs), with the remaining portion comprising plug-in hybrid electric vehicles (PHEVs). UBI enables the implementation of dynamic pricing models for electric vehicles. Insurers can adjust premiums based on charging behavior, battery usage, and driving patterns. This dynamic approach aligns with the evolving nature of electric vehicle technology and usage. Thus, the above aspects will expand the market growth across the region in the upcoming years.
The US market dominated the North America Usage-Based Insurance Market by Country in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $37,814 Million by 2030. The Canada market is experiencing a CAGR of 27.4% during (2023 - 2030). Additionally, The Mexico market would exhibit a CAGR of 26.3% during (2023 - 2030).
Based on Vehicle Age, the market is segmented into New Vehicles, and Used Vehicles. Based on Policy, the market is segmented into Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), and Manage-How-You-Drive (MHYD). Based on Vehicle Type, the market is segmented into Light-Duty Vehicle (LDV), and Heavy-Duty Vehicle (HDV). Based on Technology, the market is segmented into Black Box, OBD (On-Board Diagnostics)-II, Smartphone, and Hybrid. Based on countries, the market is segmented into U.S., Mexico, Canada, and Rest of North America.
List of Key Companies Profiled
- Liberty Mutual Holding Company Inc.
- Allstate Insurance Company
- MAPFRE RE, COMPAÑÍA DE REASEGUROS, S.A. (Cartera Mapfre, S.L.)
- The Progressive Corporation
- Nationwide Mutual Insurance Company
- MS&AD Insurance Group Holdings, Inc.
- Tesla, Inc.
- Hyundai Motor Company
- Octo Telematics S.p.A. (Renova Group)
- Zubie, Inc.
Market Report Segmentation
By Vehicle Age- New Vehicles
- Used Vehicles
- Pay-As-You-Drive (PAYD)
- Pay-How-You-Drive (PHYD)
- Manage-How-You-Drive (MHYD)
- Light-Duty Vehicle (LDV)
- Heavy-Duty Vehicle (HDV)
- Black Box
- OBD (On-Board Diagnostics)-II
- Smartphone
- Hybrid
- US
- Canada
- Mexico
- Rest of North America
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. North America Usage-Based Insurance Market by Vehicle Age
Chapter 6. North America Usage-Based Insurance Market by Policy
Chapter 7. North America Usage-Based Insurance Market by Vehicle Type
Chapter 8. North America Usage-Based Insurance Market by Technology
Chapter 9. North America Usage-Based Insurance Market by Country
Chapter 10. Company Profiles
Companies Mentioned
- Liberty Mutual Holding Company Inc.
- Allstate Insurance Company
- MAPFRE RE, COMPAÑÍA DE REASEGUROS, S.A. (Cartera Mapfre, S.L.)
- The Progressive Corporation
- Nationwide Mutual Insurance Company
- MS&AD Insurance Group Holdings, Inc.
- Tesla, Inc.
- Hyundai Motor Company
- Octo Telematics S.p.A. (Renova Group)
- Zubie, Inc.
Methodology
LOADING...
