Commercial Auto Insurance Market Size & Share, by Coverage Type (Liability Insurance, Physical Damage Insurance, Uninsured, Medical Payments); Application; Vehicle Type; Distribution Channel - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2026-2035

  • Report ID: 8304
  • Published Date: Dec 11, 2025
  • Report Format: PDF, PPT
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Commercial Auto Insurance Market Outlook:

Commercial Auto Insurance Market size was valued at USD 199.9 billion in 2025 and is projected to reach USD 459.1 billion by the end of 2035, rising at a CAGR of 9.7% during the forecast period, i.e., 2026-2035. In 2026, the industry size of commercial auto insurance is estimated at USD 219.2 billion.

Commercial Auto Insurance Market Size
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The rapid technological adoption, evolving fleet dynamics, and the shifting regulatory landscapes are the key factors propelling growth in the international commercial auto insurance market. In this regard, Cable Insurance in May 2025 announced that it has entered into a partnership with TruckerCloud to leverage its device-agnostic telematics platform by enabling real-time driving acumen and streamlined claims data collection across its commercial auto portfolio. The collaboration allows the firm to integrate data from multiple telematics and video providers, thereby enhancing underwriting accuracy and operational efficiency. In addition, the centralization of fleet-level intelligence allows the insurer to evaluate risks and support safer and smarter fleet operations. Hence, this partnership demonstrates how technology is readily transforming commercial auto insurance by aligning coverage with fleet dynamics.

Furthermore, the commercial auto insurance market benefits from the growth of logistics operations, which is expanding the demand for fleet coverage, whereas the transition to electric and autonomous vehicles is reshaping underwriting models as well as risk profiles. According to the article published by NAIC in February 2025, the NAIC 2021 to 2022 Auto Insurance Database Report shows that the national combined average premium per vehicle reached USD 1,258, which reflects a 5.75% increase from 2021, whereas the total liability incurred losses grew 19.4% to USD 103.8 billion. The report also underscored that average incurred loss per collision rose by around 18.6%, whereas the state-level variations in underwriting costs, repair expenses are influencing premiums and expenditures, highlighting the complex landscape of U.S. auto insurance.

Key Commercial Auto Insurance Market Insights Summary:

  • Regional Insights:

    • North America is expected to secure a 38.8% share by 2035 in the commercial auto insurance market, underpinned by a mature regulatory environment and strong fleet-safety practices.
    • Asia Pacific is projected to expand rapidly through 2026-2035 as rising trade, urbanization, and logistics growth reshape regional commercial vehicle insurance needs.
  • Segment Insights:

    • By 2035, the liability insurance segment in the commercial auto insurance market is projected to command a 62.5% share, sustained by legal mandates and severe social inflation.
    • Over 2026-2035, the for-hire trucking/logistics subtype is expected to retain a leading share, bolstered by expanding e-commerce activity and just-in-time supply chain requirements.
  • Key Growth Trends:

    • Growth in commercial vehicle fleets
    • Regulatory requirements
  • Major Challenges:

    • Rising claims costs and liability exposure
    • Regulatory compliance
  • Key Players: Allianz SE (Germany), AXA Group (France), Zurich Insurance Group (Switzerland), American International Group, AIG (U.S.), Chubb Limited (Switzerland/U.S.), Tokio Marine Holdings, Inc. (Japan), Sompo Holdings, Inc. (Japan), MS&AD Insurance Group Holdings (Japan), The Travelers Companies, Inc. (U.S.), Liberty Mutual Insurance Group (U.S.), Berkshire Hathaway-GEICO & National Indemnity (U.S.), Progressive Corporation (U.S.), MAPFRE S.A. (Spain), Aviva plc (U.K.), QBE Insurance Group Limited (Australia).

Global Commercial Auto Insurance Market Forecast and Regional Outlook:

  • Market Size & Growth Projections:

    • 2025 Market Size: USD 199.9 billion
    • 2026 Market Size: USD 219.2 billion
    • Projected Market Size: USD 459.1 billion by 2035
    • Growth Forecasts: 9.7% CAGR (2026-2035)
  • Key Regional Dynamics:

    • Largest Region: North America (38.8% Share by 2035)
    • Fastest Growing Region: Asia Pacific
    • Dominating Countries: United States, China, Germany, Japan, United Kingdom
    • Emerging Countries: India, Brazil, Indonesia, Mexico, United Arab Emirates
  • Last updated on : 11 December, 2025

Growth Drivers

  • Growth in commercial vehicle fleets: This, coupled with expanding freight or logistics demand, is continuously driving business in the commercial auto insurance market.  Testifying to this, the American Trucking Association reported that in 2024, trucks transported around 72.7% of the U.S. freight by weight, handling 11.27 billion tons and generating USD 906 billion in gross freight revenue, which highlights the critical role of trucking in the national economy. It also mentioned that the U.S. had 14.89 million registered single-unit and combination trucks traveling 329.86 billion miles, whereas nearly 580,000 active motor carriers operated across the country, mostly with fleets under 100 trucks. In addition, Trucks also carried 67% of U.S.–Canada and 85% of U.S.–Mexico surface trade by value, supporting employment for 8.4 million people, including 3.58 million truck drivers, illustrating the stronger potential for the commercial auto insurance sector.
  • Regulatory requirements: The mandatory insurance compliance in most jurisdictions, laws, and regulations requires commercial vehicles to leverage commercial‑auto insurance. As governments tighten safety, liability, for commercial transportation, businesses must ensure their fleets operate legally, thereby driving progress in the commercial auto insurance market. According to the study by the NAIC in February 2025, it explores the state regulatory frameworks, which include the fault systems and rate-setting practices, that influence customer satisfaction in the U.S. auto insurance industry. The research also underscores that demographic and experiential factors play a pivotal role in reshaping consumer perceptions of insurers. Furthermore, understanding these regulatory impacts efficiently helps insurers and policymakers to enhance service quality, thereby ensuring consumer protection across various states.
  • Rising accident frequency: The increasing repair costs and higher liability exposure, wherein more vehicles are on the road, especially in dense urban and freight-heavy zones, accident rates and severity rise. Also, repair, replacement, and liability costs have surged globally. These risks are encouraging fleet operators and businesses to opt for insurance coverage, which is increasing the uptake of commercial auto insurance. The FMCSA reported that in 2022, 5,837 large trucks were involved in fatal crashes, which has 58,992 in injury crashes, and 117,641 in property-damage-only incidents, reflecting rising accident frequency in the commercial trucking sector. In addition, fatal crashes occurred on rural roads and interstates, in which 73% involved collisions with other vehicles, highlighting the need for commercial auto insurance coverage, hence driving growth in the commercial auto insurance market.

Challenges

  • Rising claims costs and liability exposure: This is one of the major challenges associated with the commercial auto insurance market. Commercial auto insurers in this field are facing escalating claims costs influenced by the rising vehicle repair expenses, medical costs, and increased litigation. Besides, large fleets are operating across multiple states or countries, which increases exposure to various regulatory and liability frameworks. Also, high-severity accidents that involve heavy commercial vehicles or multi-vehicle collisions can influence impact loss ratios. In addition, managing this liability exposure requires robust underwriting models, predictive analytics, and risk-mitigation strategies, which makes claims cost management a persistent and extremely complex challenge in this sector.
  • Regulatory compliance: This, coupled with evolving insurance laws, is a major hampering factor for the commercial auto insurance market since it is heavily influenced by government regulations that vary across regions. Therefore, insurers must comply with factors as mandatory liability coverage, minimum capital requirements, vehicle safety standards, and reporting obligations. These regulatory changes can occur rapidly, including stricter environmental standards, telematics usage policies, or mandates on autonomous and electric vehicles, whereas non-compliance can result in penalties, license revocations, or reputational damage. Furthermore, multi-jurisdictional operations, for global carriers, necessitate continuous monitoring and adaptation to diverse legal frameworks, drive operational costs, and necessitate investment in compliance.

Commercial Auto Insurance Market Size and Forecast:

Report Attribute Details

Base Year

2025

Forecast Year

2026-2035

CAGR

9.7%

Base Year Market Size (2025)

USD 199.9 billion

Forecast Year Market Size (2035)

USD 459.1 billion

Regional Scope

  • North America (U.S. and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC, North Africa, South Africa, Rest of the Middle East and Africa)

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Commercial Auto Insurance Market Segmentation:

Coverage Type Segment Analysis

In the commercial auto insurance market liability insurance segment is anticipated to command the largest revenue share of 62.5% over the discussed timeframe. The dominance of the segment is due to legal mandates and severe social inflation. Also, the liability insurance remains essential for commercial vehicles as it protects businesses against claims arising from bodily injury or property damage caused by accidents. Simultaneously, the regulatory requirements across federal and state levels further reinforce its adoption, making it a non-negotiable coverage for fleet operators. Additionally, rising accident costs, increasing litigation, and higher medical and repair expenses due to social inflation are encouraging businesses to maintain robust liability coverage. Hence, this ensures financial protection for companies, thereby supporting safe and compliant operations on the road.

Application Segment Analysis

In terms of application for hire trucking/ logistics subtype remains the strongest in the commercial auto insurance market over the discussed timeframe. The segment’s revenue share is efficiently fueled by the growth of e-commerce and just-in-time supply chains, increasing the number of insured vehicles and miles driven. For instance, in 2023, FHWA reported that its Spring 2023 forecast projects total U.S. vehicle miles traveled to grow at an average annual rate of 0.6% between 5 years ago and 2049, wherein the light-duty vehicles increase 0.5% and combination trucks 1.2% per year. It also outlined that single-unit trucks are expected to see the highest growth, which is 1.8% annually, reflecting the expanding freight demand and commercial transportation needs. Also, these projections are based on long-term economic and demographic trends, which include a 1.8% annual increase in real GDP, shaping future growth of the segment.

Vehicle Type Segment Analysis

By the conclusion of 2035 heavy trucks & tractor-trailer trailers segment, based on vehicle type, is expected to gain a lucrative revenue share in the commercial auto insurance market. Their high value, operational risk, and economic role of these vehicles are the key factors behind their revenue lead.  In October 2025, Daimler Truck Financial Services and GEICO together announced that they had launched a new telematics-based insurance product, which allows owner-operators and small fleets with Freightliner and Western Star trucks to save up to 10% on premiums by sharing real-time driving data. The firm states that the connected insurance solution provides safe driving while supporting the company’s transition from traditional financing to a full-service commercial vehicle solutions provider. Furthermore, this initiative leverages vehicle data to enhance safety, efficiency, and cost savings, hence denoting a positive market outlook.

Our in-depth analysis of the commercial auto insurance market includes the following segments:

Segment

Subsegments

Coverage Type

  • Liability Insurance
  • Physical Damage Insurance
  • Uninsured
  • Medical Payments

Application

  • For-Hire Trucking/Logistics
  • Construction & Mining
  • Retail & Wholesale
  • Public Transit & Transportation Services
  • Others
    • Agriculture
    • Government

Vehicle Type

  • Light Commercial Vehicles
    • Liability Insurance
    • Physical Damage Insurance
    • Uninsured
    • Medical Payments
  • Medium Trucks
  • Heavy Trucks & Tractor-Trailers
  • Buses
  • Specialty Vehicles
    • Tow Trucks
    • Food Trucks

Distribution Channel

  • Independent Agents & Brokers
    • Construction & Mining
    • Retail & Wholesale
  • Captive Agents
  • Direct Sales
  • Bancassurance & Others
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Vishnu Nair
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Commercial Auto Insurance Market - Regional Analysis

North America Market Insights

In the commercial auto insurance market, North America is expected to lead with the largest revenue share of 38.8% by the end of 2035. The dominance of the region is attributable to a mature regulatory environment and a strong emphasis on risk management and fleet safety. Simultaneously, the growing e-commerce and logistics demand is also driving expansion in coverage offerings for trucks and delivery fleets. In October 2025, AIG announced it would acquire the renewal rights for the majority of Everest Group’s retail insurance portfolios, which represented around USD 2 billion in premium. In this move, Everest will retain liability exposure and continue administering claims, while AIG will begin writing policies for existing clients. Hence, this strategic move is expected to drive growth in AIG’s general insurance business and strengthen its global insurance presence.

The U.S. is continuing its growth trajectory in the regional commercial auto insurance market on account of federal and state regulations as well as litigation trends. The country’s market is highly competitive, wherein the carriers offer flexible policies for small businesses, owner-operators, and large commercial fleets. The Insurance Information Institute reported that the country’s commercial insurance sector is dominated by major players such as Travelers, Chubb, Liberty Mutual, Berkshire Hathaway, Zurich, and AIG, collectively holding significant commercial auto insurance market share in direct premiums written. Key brokers such as Marsh & McLennan, Aon, and Arthur J. Gallagher are efficiently facilitating distribution and client services, whereas the leading reinsurance brokers, such as Aon’s Reinsurance Solutions and Guy Carpenter, manage risk transfer. In addition, Surplus lines insurers are providing specialized coverage for high-risk or nonstandard exposures, highlighting the competitive dynamics of the regional commercial auto insurance sector.

Canada also gained huge exposure in the regional commercial auto insurance market owing to its compliance with provincial regulations and coverage for long-haul trucking across provinces. The country’s market also benefits from advanced telematics adoption, which is gradually increasing as companies seek ways to optimize premiums while maintaining robust coverage. Aviva Canada, in June 2025, announced that it has launched fleet telematics insurance, which allows commercial fleet companies to utilize their existing telematics data to make coverage suitable and manage risk. Also, this solution clearly evaluates driver behavior, vehicle location, and engine performance to generate a risk score, which can influence premiums. Furthermore, this approach helps fleets optimize operations and potentially lower insurance costs by ensuring compliance with transportation regulations.

APAC Market Insights

Asia Pacific is likely to showcase the fastest growth in the international commercial auto insurance market from 2026 to 2035. The region is expanding in this field due to rising trade, urbanization, and logistics growth. Insurers in this region are adapting products to cover diverse commercial vehicles, including trucks, buses, and delivery vans, by simultaneously addressing regulatory differences across countries. In November 2025, Fujitsu announced the launch of the Japan Edition of SAP Fioneer Cloud for Insurance, which is a next-generation platform suitable for the country’s regulatory and operational requirements. The system enhances core insurance processes such as product, policy, and claims management and includes features specifically developed for automobile insurance, which is a key focus area in Japan. Furthermore, by integrating specialized templates and compliance functions, the platform aims to modernize insurers’ operations and accelerate digital transformation.

China is efficiently growing in the regional commercial auto insurance market owing to the expansion of e-commerce and industrial sectors. Insurers in the country are developing products suitable for large fleets, logistics companies, and passenger transport services by emphasizing risk management and accident prevention.  In addition, major insurers are integrating telematics and driver-behavior analytics to reduce claim frequency and optimize fleet performance.
They are also partnering directly with commercial-vehicle manufacturers and logistics platforms to design suitable coverage bundles for high-usage vehicles. Furthermore, the increasing collaborations and policy changes are allowing an enhanced uptake in this field. Hence, this coordinated approach is strengthening underwriting precision by supporting safer and more efficient transportation networks across the country.

The commercial auto insurance market in India is emerging at a rapid pace, primarily fueled by a booming logistics sector and regulatory mandates for coverage of cargo and passenger vehicles. Companies in the country are focused on liability and accident prevention programs, whereas digital platforms are gradually reshaping the underwriting and claims process. In September 2025, Citroën India announced that it had partnered with Oriental Insurance to expand its customer-centric motor insurance offerings across the country, which includes Tier 3 and Tier 4 towns, thereby providing customers with a wider range of insurance options, faster policy issuance. In addition, this partnership demonstrates how automakers and insurers are leveraging collaboration to enhance coverage, convenience, and risk management for vehicle owners, hence positively impacting commercial auto insurance market growth.

Europe Market Insights

Europe’s commercial auto insurance market is highly supported by stringent regulatory frameworks, cross-border transport considerations, and advanced risk management practices. Growth in this region is also supported by increasing trade, e-commerce, and technological innovations in the insurance sector. In 2025, AXA Partners announced that it had entered exclusive negotiations to acquire EBTS, which specializes in truck, trailer, and tyre assistance, to expand its international truck assistance division. Also, the acquisition strengthens the company’s expertise and geographic footprint across Europe, combining insurance and assistance solutions with digital innovation. Furthermore, the deal positions the enlarged division as a top provider for road transport equipment and driver support. Hence, it also aligns with AXA’s strategy to drive sustainable growth and market leadership in commercial mobility insurance.

Germany is growing exponentially in the regional commercial auto insurance market, which is deeply emphasizing coverage for logistics and passenger transport operations. Simultaneously, insurers focus on innovation through telematics-based risk assessment, driver and digital claims handling to improve efficiency and reduce losses. In October 2025, at the 13th Allianz Motor Day 2025, Allianz highlighted the safety gains from autonomous vehicles, by reporting that advanced driver-assistance systems already reduce certain accidents by up to 66% and expect a 20% drop in traffic accidents by 2035, rising to over 50% by 2060. It also stated that the insurer called for EU-wide testing standards, a driving license for autonomous systems, and open access to safety-related in-vehicle data to ensure accountability and public trust. Furthermore, the firm also emphasized that while accident frequency may fall, the complexity and cost of claims will rise, requiring new approaches for premium setting for commercial and personal auto insurance.

The U.K. has a stronger scope to capitalize on the entire commercial auto insurance market owing to the focus on risk management, telematics, and fleet optimization. Providers in this country are offering a wide range of policies for small and large fleets, including liability, cargo, and physical damage coverage. In October 2025, Allianz UK announced that it had entered a five-year partnership with Ticker to provide underwriting and claims support across Ticker’s connected motor insurance products, including pay-per-mile, young, older, van, and high-risk drivers. Besides, the collaboration combines Allianz’s claims and underwriting expertise with Ticker’s data science and telematics capabilities to enhance pricing, fraud detection, and driving safety. Furthermore, this partnership strengthens the firm’s presence in the UK retail motor insurance commercial auto insurance market by promoting profitable growth opportunities.

Commercial Auto Insurance Market Share
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Key Commercial Auto Insurance Market Players:

    Below is the list of some prominent players operating in the global commercial auto insurance market:

    • Allianz SE (Germany)
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • AXA Group (France)
    • Zurich Insurance Group (Switzerland)
    • American International Group, AIG (U.S.)
    • Chubb Limited (Switzerland/U.S.)
    • Tokio Marine Holdings, Inc. (Japan)
    • Sompo Holdings, Inc. (Japan)
    • MS&AD Insurance Group Holdings (Japan)
    • The Travelers Companies, Inc. (U.S.)
    • Liberty Mutual Insurance Group (U.S.)
    • Berkshire Hathaway-GEICO & National Indemnity (U.S.)
    • Progressive Corporation (U.S.)
    • MAPFRE S.A. (Spain)
    • Aviva plc (U.K.)
    • QBE Insurance Group Limited (Australia)

    The global commercial auto insurance market is extremely competitive, which is dominated by the multinational insurers leveraging extensive portfolios, distribution networks, and underwriting capabilities. Major pioneers such as Allianz, AXA, Zurich, AIG, and Tokio Marine are strongly focused on digital transformation, AI-based risk assessment, and usage-based insurance models to strengthen profitability and customer engagement. In December 2025, Roadzen Inc. announced that it had acquired majority control of U.S.-based commercial auto MGU EliteCover, strengthening its presence in the U.S. market. The company also mentioned that this acquisition, expected to contribute over USD 8 million in annual revenues with 25%+ Adjusted EBITDA margins, combines EliteCover’s underwriting authority and distribution footprint with Roadzen’s AI, telematics, and automated claims platforms. Furthermore, this integration enables predictive underwriting, driver-risk scoring, real-time claims automation, and connected roadside assistance, positioning Roadzen and EliteCover to deliver a data-centric commercial auto insurance solution across fleets and agents.

    Corporate Landscape of the Commercial Auto Insurance Market:

    • Allianz SE is leading the entire global dynamics of the commercial insurance space through its division Allianz Commercial, which is offering multinational insurance programs suitable for fleets, corporate clients, and complex global exposures. The firm is operating across more than 200 countries and local entities in over 70 markets and is especially strong at managing cross-border risks for large enterprises and mid-market firms.
    • AXA S.A., through its P&C and specialty-risk arm AXA XL, is another dominant force at the global scale, offering panoramic commercial auto and fleet insurance solutions to businesses large and small.  The firm has a wide geographical footprint in Europe, North America, and the Asia‑Pacific, paired with its diversified product portfolio, which is allowing it to address complex corporate and fleet-risk requirements across regions.
    • Zurich Insurance Group is identified as one of the leading multi-line insurers with a strong commercial insurance business, serving a wide range of companies from SMEs to global multinational clients. The company has global reach across more than 210 countries and territories, and disciplined underwriting capabilities make Zurich a preferred provider for commercial auto and fleet insurance programs, especially for firms that are leveraging international operations.
    • American International Group, Inc. is a prominent player in worldwide commercial auto insurance, offering broad general insurance services including vehicle, fleet, and liability coverage across geographies. AIG is leveraging a wide international presence and expertise in diversified risk portfolios, and the company serves corporate clients who need global coverage and robust liability protection.
    • Chubb Limited, identified as be of the world’s largest publicly traded property and casualty insurers, provides commercial auto, fleet, and corporate vehicle insurance backed by its extensive resources and financial strength. On the other hand, its broad global footprint, reinsurance capacity, and risk‑management capabilities make the company is as a key competitor for businesses by seeking stable, auto insurance solutions under a large international insurer.

Recent Developments

  • In October 2025, AIG announced strategic investments, i.e., a 35% stake in Convex Group and a 9.9% stake in Onex Corporation, along with a quota share arrangement. The company will also invest up to USD 2 billion in Onex-managed funds to enhance portfolio returns and strengthen specialty-insurance and investment capabilities.
  • In June 2025, ICICI Lombard announced that it had partnered with Clearspeed, through channel partner Aelius, to introduce a voice-based risk-assessment solution, which is aimed at reducing fraud in motor-theft insurance claims in India and offers fast, bias-free, and frictionless risk evaluation, enabling quicker settlements.
  • Report ID: 8304
  • Published Date: Dec 11, 2025
  • Report Format: PDF, PPT
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Frequently Asked Questions (FAQ)

In the year 2025, the industry size of the Commercial Auto Insurance market was over USD 199.9 billion.

The market size for the Commercial Auto Insurance market is projected to reach USD 459.1 billion by the end of 2035, expanding at a CAGR of 9.7% during the forecast period, i.e., between 2026-2035.

The major players in the market are Allianz SE, AXA Group, Zurich Insurance Group, American International Group, AIG, Chubb Limited, Tokio Marine Holdings, Inc., and others.

In terms of coverage type, the liability insurance segment is anticipated to garner the largest market share of 62.5% by 2035 and display lucrative growth opportunities during 2026-2035.

The market in North America is projected to hold the largest market share of 38.8% by the end of 2035 and provide more business opportunities in the future.
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