Table of Contents
Historical Data, Premium Insights, Market Dynamic, Analysis and Projection, By Product, Analysis and Projection, By Application, Analysis and Projection, By End-Use, Analysis and Projection, By Regional Analysis, Competitive Landscape, Company Profiles, Market Revenue, Sale & Price Analysis
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According to a research report published by Spherical Insights & Consulting, the Global Guaranteed Auto Protection (GAP) Insurance Market Size is Expected to Grow from USD 7.16 Billion in 2023 to USD 11.66 Billion by 2033, at a CAGR of 5.00% during the forecast period 2023-2033.
Browse key industry insights spread across 210 pages with 110 Market data tables and figures & charts from the report on the Global Guaranteed Auto Protection (GAP) Insurance Market Size, Share, and COVID-19 Impact Analysis, By Coverage Type (Mechanical Breakdown Insurance, Extended Warranty, and Vehicle Service Contracts), By Distribution Channel (Online, Brokerage, and Direct Sales), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033.
Guaranteed Auto Protection (GAP) insurance is an optional coverage that helps pay off the remaining balance on a car loan or lease if the vehicle is stolen or totaled. It covers the difference between the car's current value and the amount owed on the loan or lease. GAP insurance is particularly beneficial for those who owe more on the car than it is worth, especially in situations where no down payment was made or a long loan term was chosen. The GAP insurance market is influenced by several factors. As cars become more expensive, borrowers often have to take out larger loans or leases, which can lead to a situation where the loan amount exceeds the car's actual cash value (ACV). GAP insurance bridges this gap by covering the difference between the ACV and the remaining loan balance. Additionally, a rising number of road accidents contributes to the growth of the GAP insurance market, as these incidents highlight the need for coverage that helps policyholders cover the disparity between insurance payouts and remaining loan balances. However, there are factors that may hinder the growth of the GAP insurance market. Some individuals may not be aware of the benefits of GAP insurance, leading to a potential decrease in the number of new policies sold. Furthermore, the market may be facing intense competition, which could impact policy sales.
The mechanical breakdown insurance segment is predicted to hold the largest market share through the forecast period.
Based on the coverage type, the guaranteed auto protection (GAP) insurance market is classified into mechanical breakdown insurance, extended warranty, and vehicle service contracts. Among these, the mechanical breakdown insurance segment is predicted to hold the largest market share through the forecast period, due to increasing consumer awareness of vehicle maintenance and repair costs. MBI provides coverage for repairs that are not typically included in standard auto insurance policies, appealing to drivers seeking financial protection against unexpected mechanical failures. As vehicle technology advances and repair expenses rise, more consumers are likely to opt for MBI, contributing to its anticipated growth and substantial market share during the forecast period.
The online segment is anticipated to hold the highest market share during the projected timeframe.
Based on the distribution channel, the guaranteed auto protection (GAP) insurance market is divided into online, brokerage, and direct sales. Among these, the online segment is anticipated to hold the highest market share during the projected timeframe, due to the growing trend of digitalization and consumer preference for convenient purchasing options. Online platforms offer easy access to information, competitive pricing, and the ability to compare different insurance products quickly, attracting a tech-savvy demographic. Furthermore, the rise of e-commerce and mobile applications facilitates seamless transactions, allowing consumers to purchase policies from the comfort of their homes, thus driving the growth of the online insurance market during the projected timeframe.
North America is estimated to hold the largest share of the guaranteed auto protection (GAP) insurance market over the forecast period.
North America is estimated to hold the largest share of the guaranteed auto protection (GAP) insurance market over the forecast period. primarily due to the high number of vehicle loans and leases in the region. As consumers increasingly finance their vehicles, the demand for GAP insurance rises, providing protection against losses when vehicles are damaged or stolen. The combination of a strong automotive market, heightened awareness of financial protection, and robust consumer spending patterns positions North America as a leader in the GAP insurance segment.
Europe is expected to grow the fastest during the forecast period, driven by rising consumer confidence and increasing vehicle ownership rates. The region's economic recovery post-pandemic has led to higher disposable incomes, allowing more individuals to purchase vehicles and, consequently, seek additional coverage options like GAP insurance.
Competitive Analysis
Major key players in the guaranteed auto protection (GAP) insurance market include ProGuard Warranty, National Auto Care, Diamond Warranty, Total Warranty Services, EverQuote, AutoProtect, Gudo, Protect My Car, Zebra, Warranty Forever, VSC, CarShield, Road Vantage, Auto Warranty Direct, Assurant, and others.
Recent Developments
Key Target Audience
Market Segment
This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the guaranteed auto protection (GAP) insurance market based on the below-mentioned segments:
Global Guaranteed Auto Protection (GAP) Insurance Market, By Coverage Type
Global Guaranteed Auto Protection (GAP) Insurance Market, By Distribution Channel
Global Guaranteed Auto Protection (GAP) Insurance Market, By Regional Analysis
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