Road Assistance Insurance Market Expected to Reach $13.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Road Assistance Insurance Market," The road assistance insurance market was valued at $5.9 billion in 2021, and is estimated to reach $13.9 billion by 2031, growing at a CAGR of 9.4% from 2022 to 2031.

Various companies are expanding their current services to meet the continuous rise in demand with increase in demand for state farm roadside assistance. For instance, in September 2022, FixiGo and Roadzen announced their partnership to provide 24x7 nationwide roadside assistance (RSA) services. The roadside assistance cover will be accessible via a toll-free number or the FixiGo mobile app. It will include on-call support, repair-on-spot, towing for mechanical and electrical breakdown and accidental cases, vehicle repatriation services, fuel delivery in case of fuel run-out, minor on-site repair, battery jump-start, on-demand assistance, and key retrieval support. Customers will also benefit from new features like real-time access, dedicated DID (direct inward dialing) numbers, hotel assistance, medical assistance, vehicle custody services, luggage transportation, hotel/house medical assistance during travel, chauffeur on-demand, replacement/courtesy cars, and chauffeur on-call for mobile applications.

Furthermore, market players are expanding their market share by introducing various new products in the roadside assistance progressive cover. For instance, in October 2020, Walmart-owned digital payments firm PhonePe launched insurance products for private cars and two-wheelers in India, partnering with Bajaj Allianz General Insurance for the service. The customers can get renewals, cashless repair services at an extensive countrywide network of garages and instant claim settlement within 20 minutes. Further, PhonePe users can also customize their car insurance plan based on their needs with a range of value-added offerings such as zero depreciation, 24X7 roadside assistance and engine protection.

By distribution channel, the independent agents/brokers segment acquired the major share for the road assistance insurance market. This is attributed to the fact that brokers are aware of the terms and conditions, coverages and exclusions and costs of a wide range of competing insurance policies, so they can help clients find the most appropriate cover for client’s circumstances.

Region-wise, Europe dominated the road assistance insurance market share in 2021. This was attributed to the escalated per capita income, consumer preference for lavishness, high standard of living, and rise in the sale of premium vehicles.

There has been a significant shift in consumer patterns for road assistance insurance industry during the pandemic. In addition, the lockdown restrictions decreased the demand for road assistance insurance. Further, decrease in purchase of the coverage had a negative impact on road assistance insurance industry. However, the increase in demand for road assistance insurance coverage with adoption of electric vehicles boosts the road assistance insurance market growth during the pandemic.

There has been a significant shift in consumer patterns for road assistance insurance market trends during the pandemic. In addition, the lockdown restrictions decreased the demand for road assistance insurance. Further, decrease in purchase of the coverage had a negative impact on road assistance insurance industry. However, the increase in demand for road assistance insurance coverage with adoption of electric vehicles has boosted the road assistance market growth during pandemic.    

Key Findings of the Study

• By distribution channel, the independent agents/brokers segment accounted for the highest road assistance insurance market share in terms of revenue in 2021.
• On the basis of vehicle type, the indirect commercial vehicle segment is expected to exhibit the fastest growth rate during the forecast period.
• Region-wise, Europe generated the highest revenue in 2021 in road assistance insurance market size.  

The key players operating in the road assistance insurance market analysis include Agero, Inc., Allstate Insurance Company, American Express Company, Erie Indemnity Co., GEICO, IFFCO-Tokio General Insurance Company Limited, Nationwide Mutual Insurance Company, Progressive Casualty Insurance Company, USAA, and Viking Assistance Group. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.