A recent report indicated that the market is predicted to reach $108.6 billion by 2032
A rise in disposable income and the popularity of obtaining motorcycle insurance coverage are being credited for a notable increase in the size and value of that market.
That market is experiencing a sudden surge in the US and worldwide
The rising popularity of motorcycle insurance is being greatly associated with the increasing ownership of the bikes around the world. The trend is particularly strong in metropolitan areas, where there is higher appeal for affordability, maneuverability, and small size for parking and storage.
Moreover, as disposable income also grows and priorities shift among consumers, this type of vehicle is becoming a more practical option as a seasonal or secondary vehicle even among people who also own another passenger vehicle.
Governments respond to the need for motorcycle insurance among riders
With more riders on the roads, governments worldwide have responded by creating regulations and laws for carrying coverage.
For instance, according to the National Association of Insurance Commissioners (NAIC) in the United States, most states across the country now require riders to carry at least liability motorcycle insurance. Though this doesn’t cover any damage to the rider’s own vehicle, it does provide some coverage for another person and/or their property if they are involved in a collision with that vehicle.
That type of regulation – along with a rising trend toward purchasing coverage for high value possessions – is a substantial contributor to the growth of motorcycle insurance coverage. The goal of those rules is to help promote improved rider safety while mitigating financial risks associated with collisions in which these vehicles are involved.
Skyrocketing value
An analysis conducted by Data Horizzon Research determined that growth in this market will continue through 2032, at which point the market will be valued at $108.6 billion. It will be comprised mainly of third-party liability coverage, which was already seeing substantial growth as of 2023.
Insurance agents and brokers, aware of this trend, are also boosting their participation in this market and are finding that it is increasingly lucrative as there are more riders on the road, and more of those riders seek coverage.
