Mobility Insurance: Redefining Protection in a Fast-Evolving Transport Landscape

Published Date : 26 September 2025

Posted by : Preeti Wani

In today's fast-paced, tech-driven world, mobility is undergoing a radical transformation. From ride-sharing and e-scooters to autonomous vehicles and electric bikes, transportation has become more flexible, connected, and user-centric than ever before. However, with this evolution comes a new set of risks, creating the urgent need for a new category of financial protection, i.e., mobility insurance.
Mobility insurance goes beyond traditional auto insurance. It serves the diverse, on-demand ways people and goods move in modern ecosystems. Whether you are a gig worker using your own vehicle for deliveries or a commuter using shared electric scooters, mobility insurance provides tailored coverage to assure safety, financial protection, and peace of mind. In this blog, we will dive into the world of mobility insurance, understand how it works, why it is booming, and what the future holds.

What is Mobility Insurance?

Mobility insurance denotes a wide range of insurance products designed to safeguard the risks associated with new and traditional modes of transportation. In contrast to conventional car insurance, which only comprises of personal vehicles, mobility insurance covers the added risks associated with it as mentioned below:

• Shared mobility platforms such as Uber, Lyft, and Zipcar
• Micro-mobility options such as e-scooters, electric bikes, and hoverboards
• Commercial use cases, mainly for gig workers delivering food or packages
• Multi-modal travel, where consumers combine bus, scooter, and ride-hailing in one single trip
• Next-generation transport, including EVs and self-driving cars

The main focus is on versatility, pricing based on usage, and digital integration. This makes coverage not only more efficient but also more aligned with real-world needs.

Why Mobility Insurance is Becoming a Necessity

The global mobility insurance market is facing noticeable growth, fueled by increasing urbanization, adoption of shared mobility, and fluctuating consumer behavior. According to the Research Nester analysis, the global mobility insurance market was calculated at $116.2 billion in 2024 and is projected to expand at a CAGR of 8.5%, reaching $245.7 billion by 2035. The shared mobility ride-hailing, car-sharing alone is predicted to cross $500.2 billion by 2030, and insurers are building dedicated products for it.

1. Increase in Shared and Micro-Mobility: Urban mobility is shifting from just car ownership to vehicle access on demand. In major cities, commuters mostly depend on ride-hailing, scooters, and bikes instead of owning a vehicle. These trends create new risk scenarios, such as who is liable if an accident occurs while using a shared scooter? or what happens if a delivery driver's car is damaged mid-shift? Traditional insurance often deliberately eliminates such use cases, creating a protection gap, and mobility insurance fulfills this void.
2. Gig Economy Workforce: By 2025, over 540 million people globally are anticipated to be engaged in gig work, many of them in mobility sectors like ridesharing and deliveries. Most gig workers use their own vehicles for commercial purposes, which personal auto insurance does not include. Dedicated mobility insurance policies offer pay-per-mile commercial coverage, flexible premiums, and on-demand protection.
3. Climate and Urban Policies: Governments are promoting decarbonization goals, promoting electric and shared mobility. In cities such as Amsterdam, Copenhagen, and parts of California, car ownership is decreasing as shared alternatives gain popularity. Mobility insurance supports this movement by enabling coverage for multi-modal travel. For example, someone might start a trip with a public bus, switch to an e-scooter, and then hop in a shared electric car all within one insurance umbrella.

Types of Mobility Insurance Coverage

Mobility insurance is not one-size-fits-all. Just as transportation options change, so do the coverage models. Here’s how the market is structured:

1. Personal Mobility Insurance: For individuals who regularly use public transport, rideshare services, rental cars, or shared bikes and scooters, personal mobility insurance grants extensive coverage beyond what typical auto policies can provide. It includes personal accident protection, third-party liability for injury or property damage, and even trip delay or cancellation benefits. This type of insurance assures commuters are covered, whether they’re taking a train to work or riding an electric scooter through city streets.
2. Micro-Mobility Insurance: As electric bikes, e-scooters, and other lightweight vehicles are becoming popular in the market, certain risks of injuries to pedestrians, theft, or damage to the vehicles are also rising. Thus, this insurance solves these risks by covering medical expenses, liability for injury to others, and repair or replacement of the vehicle. InsurTech firms like Laka, Bikmo, and Trov are leading the way by offering policies that can be activated instantly through apps, making the process seamless for users on the go.
3. Rideshare and Gig Worker Insurance: Rideshare drivers and gig workers are in a grey area when it comes to coverage. Traditional personal auto insurance does not apply while driving for commercial purposes, and commercial policies are often expensive or inflexible. That’s where hybrid coverage comes in, insurance that activates automatically when the driver starts a job and deactivates when they stop. Some plans consist of downtime protection, assuring workers still get paid if they are injured or their vehicle meets with an accident. These products are more valuable in a gig economy where income can be interrupted unexpectedly.
4. Fleet and Shared Mobility Insurance: Fleet operators operating EVs, delivery robots need robust protection that adapts to real-time usage. Fleet mobility insurance uses telematics and data analytics to make usage-based pricing models. This means insurers can charge based on mileage, driver performance, and even time of day.

Modern policies also involve cybersecurity protections for connected and autonomous vehicles, protecting businesses from hacking attempts, software failures, or data breaches. By monitoring driver behavior and vehicle diagnostics, insurers help companies reduce accident rates and improve operational safety.

The Future of Mobility Insurance

As modern transportation moves toward flexibility, connectivity, and sustainability, the insurance landscape is undergoing a parallel change. Here’s how four major innovations backed by data are shaping the next era of mobility insurance:

• Embedded Insurance Is Becoming a Built-In Feature of Everyday Travel: Instead of buying a separate policy, people are increasingly getting automatic coverage when they use a mobility service. Rent a scooter, call a rideshare, or get a bike through an app, and you are likely to be already insured. This built-in approach, referred to as embedded insurance, optimizes how people stay protected while on the go. Major companies like Uber and Lyft now include in-app insurance for both riders and drivers, while scooter services like Bird and Lime offer micro-insurance as part of each rental. This shift is not just about convenience; it is also increasing industry growth. According to Research Nester, embedded insurance is projected to bring in $722 billion in global premiums by 2030, making up nearly a quarter of the overall insurance market. The rise of Mobility-as-a-Service (MaaS) platforms, where embedded policies are common, is contributing heavily to this momentum. This segment alone is expected to hit $523 billion by 2027, growing at more than 32% each year. For users, embedded insurance means easier access to protection. For companies, it builds trust and adds value without friction.
• Telematics and Real-Time Data Are Reshaping Risk and Prices: New tools are giving insurers a clearer view of how people drive, ride, or operate vehicles. Due to technologies like telematics, which track real-time driving behavior, insurers no longer need to rely solely on age, ZIP code, or records to set premiums. Now, how you drive, how fast you go, how hard you brake, and whether you use your phone behind the wheel can directly influence how much you pay. This kind of personalized assessment is making pricing fairer and more accurate.
• Green Incentives and ESG Policies Are Encouraging Cleaner Transportation: As cities and consumers push for greener, more responsible travel, insurance providers are following that lead. More and more, policies are being designed with sustainability in mind. For drivers of electric vehicles (EVs), this might mean discounts of up to 20% due to lower repair costs and a smaller environmental footprint. Some plans also reward users for low-carbon behavior, offering perks for driving fewer miles or choosing shared transport over private cars.
• Subscription-Based Insurance Plans Are Making Coverage More Flexible: The way people want to buy insurance is changing. Many no longer need or want year-long policies. Instead, they prefer options that match their actual usage. That’s where subscription-based models dive in. These plans let users activate insurance only when they need it, whether it’s by the mile, the trip, or the hour. This kind of flexibility is specifically helpful for gig workers, casual drivers, and urban residents who rely on multiple modes of transport rather than owning a car. InsurTech companies like Veygo, Cuvva, and Zego are already offering flexible, pay-as-you-go plans that appeal to younger, tech-savvy users. According to industry forecasts, the usage-based insurance market is set to grow from $28.7 billion in 2022 to $150 billion by 2032.