PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1535967
PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1535967
Guaranteed Auto Protection (GAP) Insurance Market Size - By Type (Return-to-Invoice GAP Insurance, Finance GAP Insurance, Vehicle Replacement GAP Insurance, Return-to-Value GAP Insurance), By Application, By Distribution Channel & Forecast, 2024 - 2032
Global Guaranteed Auto Protection (GAP) Insurance Market will witness over 7% CAGR from 2024 to 2032, driven by the upsurge in vehicle leasing options. According to IEA reports from April 2024, leasing companies significantly influence second-hand markets due to their high vehicle turnover, owning them for under three years. They impact new car markets, accounting for over 20% of new car sales in Europe in 2022.
As more consumers choose to lease vehicles, the need for GAP insurance grows, primarily because lessees often seek additional protection against financial gaps. Leasing agreements typically involve lower down payments and higher monthly payments, making it crucial for lessees to protect themselves from potential financial shortfalls if their vehicle is totaled. This increased demand for GAP insurance is ushered by the desire to avoid covering the difference between the vehicle's actual cash value and the remaining lease balance, safeguarding lessees from unexpected financial burdens.
The overall guaranteed auto protection (GAP) insurance market is classified based on type, application, distribution channel, and region.
The commercial vehicle segment will exhibit a notable CAGR through 2032, which stems from the growing value and financing of commercial fleets. As businesses invest in high-value vehicles and equipment, the risk of financial loss from an accident or theft increases. GAP insurance helps cover the disparity between the vehicle's market value and the outstanding loan or lease balance, ensuring businesses are not left with a significant financial burden. Stricter financial regulations and the need for comprehensive risk management solutions elevate the adoption of GAP insurance for commercial vehicles.
The finance GAP insurance segment will garner a considerable market share by 2032, owing to the increasing complexity of financial products and consumer financing options. As more financial institutions offer diverse and higher-value loans, borrowers are more exposed to potential financial gaps if their vehicle is totaled. GAP insurance provides a safety net by covering the difference between the vehicle's depreciated value and the outstanding loan balance. The growing emphasis on protecting borrowers' investments and managing financial risks contributes to the rising demand for finance GAP insurance.
Europe guaranteed auto protection (GAP) insurance market will register a robust CAGR between 2024 and 2032, because of the expanding automotive sector and increased consumer awareness of vehicle insurance. European countries are seeing a rise in new vehicle registrations and higher vehicle financing rates, which heightens the risk of financial shortfalls in case of total loss. European Union's focus on consumer protection and financial security is prompting more consumers to seek GAP insurance. Enhanced regulatory frameworks and the growing prevalence of vehicle leasing contribute to the market growth in Europe.
Table of Contents
Chapter 1 Methodology & Scope
- 1.1 Market scope & definition
- 1.2 Base estimates & calculations
- 1.3 Forecast calculation
- 1.4 Data sources
- 1.4.1 Primary
- 1.4.2 Secondary
- 1.4.2.1 Paid sources
- 1.4.2.2 Public sources
Chapter 2 Executive Summary
- 2.1 Industry 360° synopsis, 2021 - 2032
Chapter 3 Industry Insights
- 3.1 Industry ecosystem analysis
- 3.2 Vendor matrix
- 3.3 Profit margin analysis
- 3.4 Technology & innovation landscape
- 3.5 Patent analysis
- 3.6 Key news and initiatives
- 3.7 Regulatory landscape
- 3.8 Impact forces
- 3.8.1 Growth drivers
- 3.8.1.1 Escalating vehicle prices drive GAP demand
- 3.8.1.2 High loan-to-value ratios boost GAP insurance
- 3.8.1.3 Rising vehicle thefts spur GAP coverage
- 3.8.1.4 Growing consumer awareness drives GAP adoption
- 3.8.1.5 Expansion in auto financing fuels GAP market
- 3.8.2 Industry pitfalls & challenges
- 3.8.2.1 Consumer misunderstanding of coverage terms
- 3.8.2.2 Regulatory & compliance complexities
- 3.8.1 Growth drivers
- 3.9 Growth potential analysis
- 3.10 Porter's analysis
- 3.10.1 Supplier power
- 3.10.2 Buyer power
- 3.10.3 Threat of new entrants
- 3.10.4 Threat of substitutes
- 3.10.5 Industry rivalry
- 3.11 PESTEL analysis
Chapter 4 Competitive Landscape, 2023
- 4.1 Introduction
- 4.2 Company market share analysis
- 4.3 Competitive positioning matrix
- 4.4 Strategic outlook matrix
Chapter 5 Market Estimates & Forecast, By Type, 2021 - 2032 (USD Million)
- 5.1 Return-to-invoice gap insurance
- 5.2 Finance GAP insurance
- 5.3 Vehicle replacement GAP insurance
- 5.4 Return-to-value GAP insurance
- 5.5 Others
Chapter 6 Market Estimates & Forecast, By Application, 2021 - 2032 (USD Million)
- 6.1 Passenger vehicle
- 6.2 Commercial vehicle
- 6.3 Others
Chapter 7 Market Estimates & Forecast, By Distribution channel, 2021 - 2032 (USD Million)
- 7.1 Agents & brokers
- 7.2 Direct response
- 7.3 Others
Chapter 8 Market Estimates & Forecast, By Region, 2021 - 2032 (USD Million)
- 8.1 Key trends
- 8.2 North America
- 8.2.1 U.S.
- 8.2.2 Canada
- 8.3 Europe
- 8.3.1 UK
- 8.3.2 Germany
- 8.3.3 France
- 8.3.4 Italy
- 8.3.5 Spain
- 8.3.6 Rest of Europe
- 8.4 Asia Pacific
- 8.4.1 China
- 8.4.2 India
- 8.4.3 Japan
- 8.4.4 South Korea
- 8.4.5 ANZ
- 8.4.6 Rest of Asia Pacific
- 8.5 Latin America
- 8.5.1 Brazil
- 8.5.2 Mexico
- 8.5.3 Rest of Latin America
- 8.6 MEA
- 8.6.1 UAE
- 8.6.2 South Africa
- 8.6.3 Saudi Arabia
- 8.6.4 Rest of MEA
Chapter 9 Company Profiles
- 9.1 AXA
- 9.2 Admiral Group PLC
- 9.3 Allianz Partners
- 9.4 Allstate Insurance Company
- 9.5 Amica
- 9.6 Aviva
- 9.7 Berkshire Hathaway Inc.
- 9.8 Chubb
- 9.9 Direct Gap
- 9.10 Esurance
- 9.11 Farmers Insurance
- 9.12 GEICO
- 9.13 Kemper Corporation
- 9.14 Liberty Mutual Insurance Company
- 9.15 Majesco
- 9.16 MAPFRE Insurance
- 9.17 Nationwide Mutual Insurance Company
- 9.18 Plymouth Rock Assurance
- 9.19 Progressive Casualty Insurance Company
- 9.20 Sentry Insurance
- 9.21 Shelter Insurance
- 9.22 The Hartford
- 9.23 The Travelers Indemnity Company
- 9.24 United Services Automobile Association
- 9.25 ZurichInc.
