United States Electronic Gadgets Insurance Market By Coverage Type (Accidental Damage, Theft and Loss), By Device Type (Laptops, Computers, Cameras, Mobile Devices, Drones), By End User (Corporate, Individual), By Region, Competition, Forecast & Opportunities, 2021-2031F

Key Insights	Details
Forecast Period	2027-2031
Market Size (2025)	USD 19.64 Billion
CAGR (2026-2031)	8.72%
Fastest Growing Segment	Theft and Loss
Largest Market	West
Market Size (2031)	USD 32.43 Billion

Market Overview

The United States Electronic Gadgets Insurance Market will grow from USD 19.64 Billion in 2025 to USD 32.43 Billion by 2031 at a 8.72% CAGR. Electronic gadgets insurance provides coverage for devices such as smartphones, laptops, and tablets, safeguarding against risks like accidental damage, theft, liquid spills, and mechanical malfunctions, thereby protecting consumers' financial investments. The market's expansion is significantly driven by the widespread adoption of high-value electronic devices and the increasing incidence of device theft and accidental damage. Consumers' growing awareness of the substantial costs associated with repairing or replacing sophisticated gadgets also acts as a primary growth driver.

The robust base of insurable assets underpins market demand; for instance, according to CTIA, in 2024, 5G devices in the United States reached 259 million units, underscoring the vast pool of high-value electronics requiring protection. Nevertheless, a significant challenge impeding market growth is the elevated cost of insurance premiums, which can deter consumers, particularly for high-end devices, from purchasing comprehensive coverage.

Key Market Drivers

Rising Adoption of Premium Devices Expands Insurance Market
Rising adoption of high-value electronic devices significantly fuels the United States Electronic Gadgets Insurance Market. As consumers increasingly invest in premium smartphones, laptops, and other sophisticated gadgets, the financial risk associated with damage, loss, or theft grows, thereby increasing the perceived value of insurance. These devices represent substantial investments, making owners more inclined to seek protection against unforeseen circumstances. According to the Consumer Technology Association (CTA), in July 2024, over 750 million connected consumer technology devices were projected to ship to the U.S. market in 2024, highlighting the vast and growing installed base of electronics requiring protection. This continuous influx of expensive devices into the market creates a larger base of insurable assets, directly boosting demand for comprehensive coverage plans.

Device Complexity and Repair Costs Elevate Insurance Demand
Another primary driver is the increasing device complexity and associated repair costs. Modern electronic gadgets feature advanced components and intricate designs, making repairs more specialized and expensive compared to previous generations. This elevates the financial burden on consumers when devices are damaged, making insurance a more attractive proposition. For instance, according to an article by Allstate Protection Plans, in March 2026, an iPhone 15 Pro Max screen replacement through Apple can cost $379, demonstrating the high expense of fixing contemporary devices. Such high repair costs underscore the economic benefit of insurance, as it can mitigate substantial out-of-pocket expenses for consumers. According to the Consumer Technology Association, in its July 2024 forecast, U.S. consumer technology retail revenues are projected to grow 4.4% in 2025, reaching $527 billion, further solidifying the foundation for robust insurance demand.

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Key Market Challenges

Premium Costs Impede Gadget Insurance Adoption
The elevated cost of insurance premiums represents a significant impediment to the growth of the United States Electronic Gadgets Insurance Market. This financial barrier directly deters consumers, particularly those investing in high-end devices, from acquiring comprehensive coverage. When consumers face substantial initial device costs, an expensive insurance premium is often perceived as an additional, prohibitive burden. This reluctance to commit to high premiums directly translates into lower adoption rates for insurance policies, even for valuable electronics that would benefit from protection against accidental damage, theft, or mechanical malfunctions.

Large Tech Market Size Limited by Premium Costs
According to the Consumer Technology Association (CTA), the U.S. consumer technology industry's retail revenues are projected to reach $537 billion in 2025, indicating the immense value of electronic assets owned by consumers. Despite this vast base of insurable products, the high cost of premiums prevents many individuals from safeguarding their investments. This directly hampers market expansion by reducing the potential customer base willing to opt for electronic gadget insurance, thereby limiting overall market penetration and revenue generation within the insurance sector.

Key Market Trends

AI and Automation Transform Gadget Insurance
Advanced technology integration into insurance operations represents a significant trend reshaping the United States Electronic Gadgets Insurance Market. Insurers are increasingly leveraging artificial intelligence, machine learning, and automation to enhance various aspects of their business, from streamlining claims processing to improving fraud detection and offering more personalized policy options. These technological advancements foster greater operational efficiencies, enable faster customer service, and facilitate more precise risk assessments, thereby allowing providers to offer competitive pricing and highly tailored coverage for diverse electronic devices. According to PwC, November 2025, in "PwC: Insurance Execs Say Agentic AI Leading Industry Transformation", 57% of insurance executives listed both generative and agentic AI as top technology investment priorities for 2026.

Embedded Insurance at Point of Sale
Another pivotal trend is the proliferation of seamless embedded insurance solutions. This approach integrates insurance offerings directly into the purchase journey of electronic gadgets, making coverage a convenient and often automatic add-on rather than a separate, deliberate acquisition. By offering protection at the point of sale, embedded solutions capitalize on consumer demand for simplicity and immediate coverage, which significantly boosts policy uptake and expands the market reach. This integration removes friction from the buying process, making insurance more accessible and relevant to consumers' immediate needs. According to Fintech Strategy, June 2026, in "The Rise of Embedded Insurance in Fintech Platforms: Why 2026 Is the Tipping Point", early data suggests embedded insurance attach rates now exceed 15% on well-designed fintech journeys.

Segmental Insights

Growth Drivers in Theft and Loss Insurance for Electronics
The United States Electronic Gadgets Insurance Market is experiencing rapid growth in the Theft and Loss segment, driven by several interconnected factors. The escalating cost of advanced electronic devices, such as high-end smartphones and laptops, significantly increases the financial burden of replacement, prompting consumers to seek protective measures for their substantial investments. Concurrently, there is a heightened reliance on these gadgets for daily personal and professional activities, making their loss particularly disruptive. This increased value and dependency, combined with a notable rise in device theft incidents, including widespread package theft, has made consumers more acutely aware of their vulnerability. Consequently, individuals are increasingly opting for comprehensive insurance coverage to mitigate the financial risks and ensure uninterrupted digital connectivity should their valuable electronics be stolen or lost.

Regional Insights

West Region Drives Gadget Insurance Demand Through Tech Adoption and High-Cost Devices
The West is the dominant region within the United States Electronic Gadgets Insurance Market. This prominence stems from the region's high concentration of technologically adept consumers and their widespread adoption of premium electronic devices. States, particularly California, which hosts prominent technology centers like Silicon Valley, contain a significant populace of early adopters for advanced technologies, inherently driving a substantial demand for comprehensive gadget insurance. Furthermore, the frequent use of costly devices for both professional and personal endeavors, coupled with an elevated cost of living, amplifies the critical need for robust insurance protection against potential device damage, loss, or theft in this area.

Recent Developments

• In November 2025, Chubb, a global insurance leader, launched a new AI-powered optimization engine within its Chubb Studio platform at the Singapore Fintech Festival. This innovation was designed to personalize insurance offerings at the point of sale for digital distribution partners, making it one of the first such solutions in the industry. The engine utilizes proprietary AI to analyze data and deliver highly curated protection solutions, including coverage for phone damage, directly through platforms and applications. This development aimed to enhance customer engagement and bolster brand loyalty by integrating relevant electronic gadget insurance options seamlessly into everyday digital experiences within the United States market.
• In March 2025, Glow Services introduced its new 'ADMIN INSIDE' technology, marking a significant advancement for the phone insurance sector. This innovative capability allowed telecommunications companies to effectively insource phone administration functions, which had traditionally been managed by third-party administrators. By digitizing these processes and embedding insurance regulation directly into its InsurTech platform, Glow aimed to enable Telcos to enhance profitability by potentially increasing phone insurance margins by up to 30%. This breakthrough research directly impacts the United States electronic gadgets insurance market by providing a technological solution for carriers to optimize their operational efficiency and offer more integrated device protection services.
• In August 2024, Samsung Electronics America formed a new partnership with iQmetrix, a leading provider of retail management solutions, to expand the availability of Samsung Care+ device protection. This collaboration allowed Samsung Galaxy customers to access comprehensive protection plans for their new devices directly through iQmetrix's RQ point-of-sale system in Samsung Experience Stores and various US-based wireless retailers. The Samsung Care+ plans offer extensive coverage for Galaxy phones, tablets, watches, PCs, and earbuds, addressing unlimited drops, spills, and mechanical breakdowns. This integration streamlined the process for consumers to secure reliable insurance for their electronic gadgets, reinforcing device protection as a key offering within the United States market.
• In May 2024, Back Market, a prominent online marketplace for certified refurbished technology, announced a strategic collaboration with bolt, an InsurTech company. This partnership aimed to enhance device protection options for Back Market's customers across the United States. Through this alliance, exclusive device protection plans became available, focusing on providing competitive pricing and flexible monthly installment options. The initiative expanded beyond accidental damage to include upcoming services like cyber and identity protection solutions, strengthening the value proposition for consumers purchasing refurbished smartphones, laptops, and tablets. This collaboration directly contributes to the growth and evolution of the electronic gadgets insurance market by offering tailored solutions for the expanding refurbished device sector.

Key Market Players

• AppleCare (Apple Inc.)
• SquareTrade Inc. (Allstate Corporation)
• Asurion LLC
• American International Group Inc. (AIG)
• Allianz SE
• Assurant Inc.
• Lemonade Inc.
• AmTrust Financial Services Inc.
• Aviva plc
• AXA S.A.

By Coverage Type	By Device Type	By End User	By Region
Accidental Damage Theft and Loss	Laptops Computers Cameras Mobile Devices Drones	Corporate Individual	Northeast Midwest South West

Report Scope:

In this report, the United States Electronic Gadgets Insurance Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Electronic Gadgets Insurance Market, By Coverage Type:

• Accidental Damage
• Theft and Loss

• United States Electronic Gadgets Insurance Market, By Device Type:

• Laptops
• Computers
• Cameras
• Mobile Devices
• Drones

• United States Electronic Gadgets Insurance Market, By End User:

• Corporate
• Individual

• United States Electronic Gadgets Insurance Market, By Region:

• Northeast
• Midwest
• South
• West