The global guaranteed auto protection insurance market revenue was around US$ 3.2 billion in 2021 and is estimated to reach US$ 7.48 billion by 2030, growing at a compound annual growth rate (CAGR) of 9.9% during the forecast period from 2022 to 2030.

Guaranteed Auto Protection (GAP) insurance covers the difference between the car's actual cash value and the existing loan balance, protecting the borrower if the vehicle is written off. The most popular types of vehicles for which GAP coverage is used are small cars, lorries, and big trucks.

Factors Influencing Market Growth

- The GAP insurance market is expanding due to an increase in the seriousness of theft claims for fleet owners and motor merchants.
- In the coming years, it is projected that a growing emphasis on collaborating with existing auto insurance providers and implementing comprehensive insurance alongside GAP insurance will propel the global market.
- Lack of knowledge about the benefits of guaranteed GAP insurance, a drop in new policy sales volumes, and intense competition are the restraining factors of the global market.

Study of the COVID-19 Pandemic

COVID-19 pandemic had a negative impact on the GAP insurance market due to the decline in the economy, the uncertainty of the global financial sectors, and the highly unpredictable market. Additionally, the auto industry downturn has impacted GAP insurance sales, lowering profits. Furthermore, a lot of gap insurance companies declared that they will digitalize their operations in order to retain effective client contact. During the global health crisis, this aspect aided in the growth of the GAP insurance industry.

Regional Insights

Asia-Pacific is predicted to increase at the highest rate in the GAP insurance market. This is explained by the fact that in the Asia-Pacific area, the majority of automobiles used for business purposes are legally required to have commercial auto insurance, which also leads to the purchase of GAP insurance to prevent value loss. As a result, this is a key component driving the market.

Leading Competitors

The leading competitors in the global guaranteed auto protection insurance market are:

- Admiral Group PLC
- Allianz
- Allstate Insurance Company
- American Family Insurance
- Aviva
- AXA
- Berkshire Hathaway Inc.
- Chubb
- Direct Gap
- Kemper Corporation
- Liberty Mutual Insurance Company
- Majesco
- Nationwide Mutual Insurance Company
- Progressive Casualty Insurance Company
- State Farm Mutual Automobile Insurance Company
- The Travelers Idemnity Company
- Zurich
- Others

Segmentation Analysis

The global guaranteed auto protection insurance market segmentation focuses on Type, Application, Distribution Channel, and Region.

Segmentation based on Type
- Return-to-Invoice GAP Insurance
- Finance GAP Insurance
- Vehicle Replacement GAP Insurance
- Return-to-Value GAP Insurance
- Others
Segmentation based on Application
- Passenger Vehicle
- Commercial Vehicle
Segmentation based on Distribution Channel
- Agents & Brokers
- Direct Response
- Others
Segmentation based on Region

- North America
- The U.S.
- Canada
- Mexico
- Europe
- Western Europe
- The UK
- Germany
- France
- Italy
- Spain
- Rest of Western Europe
- Eastern Europe
- Poland
- Russia
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- Australia & New Zealand
- ASEAN
- Rest of Asia Pacific

- Middle East & Africa (MEA)
- UAE
- Saudi Arabia
- South Africa
- Rest of MEA

- South America
- Brazil
- Argentina
- Rest of South America