PUBLISHER: The Business Research Company | PRODUCT CODE: 1428290
PUBLISHER: The Business Research Company | PRODUCT CODE: 1428290
Guaranteed Auto Protection (GAP) insurance is an additional coverage option that individuals can purchase to safeguard themselves in case their car is stolen or declared a total loss, and the remaining loan or lease amount exceeds the car's value. This insurance is commonly presented as an optional add-on when financing or leasing a vehicle, providing coverage for the outstanding loan balance that is not covered by the primary insurance carrier.
The primary types of Guaranteed Auto Protection (GAP) insurance encompass return-to-invoice GAP insurance, finance gap insurance, vehicle replacement gap insurance, return-to-value gap insurance, and other variations. Return-to-invoice GAP insurance specifically shields the customer financially in scenarios where their vehicle is stolen or deemed a total loss in an accident. This coverage is made available through various distribution channels, including agents, brokers, direct response, and others. The applications of GAP insurance extend to both passenger vehicles and commercial vehicles, serving diverse end-users, including individuals and corporate entities.
The guaranteed auto protection (GAP) insurance market research report is one of a series of new reports from The Business Research Company that provides guaranteed auto protection (GAP) insurance market statistics, including guaranteed auto protection (GAP) insurance industry global market size, regional shares, competitors with a guaranteed auto protection (GAP) insurance market share, detailed guaranteed auto protection (GAP) insurance market segments, market trends and opportunities, and any further data you may need to thrive in the guaranteed auto protection (GAP) insurance industry. This guaranteed auto protection (GAP) insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The guaranteed auto protection (gap) insurance market size has grown rapidly in recent years. It will grow from $3.61 billion in 2023 to $3.99 billion in 2024 at a compound annual growth rate (CAGR) of 10.3%. The growth observed in the historical period can be credited to a heightened demand for transportation, an upswing in vehicle sales, and an increase in income levels.
The guaranteed auto protection (gap) insurance market size is expected to see strong growth in the next few years. It will grow to $5.81 billion in 2028 at a compound annual growth rate (CAGR) of 9.9%. The anticipated growth in the forecast period can be linked to the proliferation of online insurance marketplaces, a concentration on tailored insurance solutions, the rise of alternative financing options, and the extension into emerging markets. Key trends expected in the forecast period involve the uptake of telematics and usage-based insurance (UBI), the integration of artificial intelligence (AI) and machine learning (ML), the introduction of digital platforms, and collaborations among key players.
The substantial increase in vehicle sales is a significant factor contributing to the growth of the guaranteed auto protection (GAP) insurance market. The surge in vehicle sales is primarily attributed to the rising demand for transportation, a consumer preference for vehicles as a lifestyle product, and an increase in income levels, among other factors. Guaranteed auto protection (GAP) insurance proves beneficial to users by covering the disparity between the current value of a vehicle (covered by regular insurance) and the amount owed in the event of severe damage or total loss due to an accident. For example, as reported by the Society of Motor Manufacturers and Traders (SMMT), a UK-based trade association, passenger car sales in the UK are projected to increase by 25.8% from 140,958 units in 2022 to 177,266 units in 2023. Additionally, on a global scale, reports from the International Organization of Motor Vehicle Manufacturers, a France-based trade association, indicate an increase in global passenger vehicle sales from 56.43 million in 2021 to 57.48 million in 2022. Hence, the upswing in vehicle sales is a driving force behind the guaranteed auto protection (GAP) insurance market's growth.
The escalating number of road accidents is a contributing factor to the anticipated growth of the guaranteed auto protection (GAP) insurance market. Road accidents, involving at least one moving vehicle and resulting in injury, death, or property damage, are on the rise. GAP insurance proves advantageous to policyholders in the aftermath of road accidents by covering the gap between insurance payouts and the remaining loan balances. In 2022, as reported by the National Safety Council, a US-based public service organization promoting health and safety, motor vehicle-related fatalities increased for the second consecutive year in 2021. Following an 8.3% rise in 2020, deaths surged by 11% in 2021, with 46,980 individuals losing their lives in motor vehicle accidents compared to 42,338 in 2020. Thus, the growing incidence of road accidents propels the growth of the guaranteed auto protection (GAP) insurance market.
The guaranteed auto protection (GAP) insurance market is witnessing a significant trend toward product innovation. Major companies in the market are actively engaged in the development of innovative auto insurance products and services for vehicles to maintain their competitive positions. For instance, in April 2021, AXA Affin General Insurance, a Malaysia-based general insurance company, introduced Guaranteed Asset Protection - Return to Insured Value (GAP-RTIV), a plan designed to safeguard the complete value of a car in the event of a total loss. This product enhancement aims to protect car owners from the financial burden of covering the uninsured outstanding value of their vehicles in unexpected setbacks, allowing them to quickly recover and purchase a replacement vehicle. The GAP-RTIV plan is accessible for cars with a maximum age of five years, and it involves a single upfront payment. Following the resolution of a comprehensive vehicle insurance claim and the submission of necessary paperwork by the owner, the company promptly settles the GAP-RTIV claim.
The anticipated growth of the guaranteed auto protection (GAP) insurance market is expected to be propelled by the increasing incidents of motor car thefts. Motor vehicle theft involves the criminal act of stealing or attempting to steal a motor vehicle. GAP insurance plays a crucial role in providing financial protection if a car is stolen and declared a total loss, alleviating the stress and burden associated with remaining loan payments on a no longer owned vehicle. For example, in September 2022, according to the National Insurance Crime Bureau, a US-based insurance industry trade association, the total reported number of stolen vehicles in the US increased by 6% from 2020, reaching 932,329 vehicles in 2021. Moreover, the overall theft ratio surged to 661.21 thefts per 100,000 people in 2021, representing a 502.12% increase from 2020. Consequently, the rising incidence of motor car thefts is a driving force behind the growth of the guaranteed auto protection (GAP) insurance market.
In May 2022, Protective Life Insurance Company, a US-based financial services company, completed the acquisition of AUL Corp. for an undisclosed amount. This strategic move by Protective Life Insurance Company is aimed at expanding its product offerings, enhancing geographic reach, fortifying its balance sheet, and achieving economies of scale. AUL Corp. is a US-based vehicle insurance company that specializes in providing guaranteed auto protection insurance services for vehicles.
Major companies operating in the guaranteed auto protection (gap) insurance market report are Berkshire Hathaway Inc., Axa S.A., State Farm Mutual Automobile Insurance Company, Nationwide Mutual Insurance Company, Allstate Insurance Company, Liberty Mutual Insurance Company, Progressive Casualty Insurance Company, Zurich Insurance Group Ltd., Chubb Limited, The Travelers Indemnity Company, Government Employees Insurance Company, The Hartford Financial Services Group Inc., American Family Insurance, Allianz SE, Auto-Owners Insurance Group, Arch Insurance Group Inc., Kemper Corporation, Amica Mutual Insurance Company, Erie Insurance, Infinity Auto Insurance, Admiral Group plc, Esurance Insurance Services Inc., American Automobile Association Inc., Assurity Solutions, Motor Gap Limited.
North America was the largest region in the guaranteed auto protection (GAP) insurance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the guaranteed auto protection (gap) insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the guaranteed auto protection (gap) insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The guaranteed auto protection (GAP) insurance market includes revenues earned by entities by providing agreed value gap insurance and contract hire gap insurance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Guaranteed Auto Protection (GAP) Insurance Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on guaranteed auto protection (gap) insurance market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for guaranteed auto protection (gap) insurance ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The guaranteed auto protection (gap) insurance market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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