The Guaranteed Auto Protection (GAP) insurance covers the difference between the car's actual cash value and the existing loan balance, protecting the borrower in the event that the vehicle is written off. The most popular types of vehicles for which GAP coverage is used are small cars, lorries, and big trucks. Owners and buyers are being compelled to purchase GAP insurance add-on plans because self-financing firms and auto leasing firms have a rising requirement for security against borrowers' unplanned losses. The market for GAP insurance is also expected to grow due to an increase in how serious theft claims are for fleet owners and motor merchants. However, a lack of knowledge about the benefits of guaranteed GAP insurance, a drop in the amount of new policy sales, and severe competition all limit the growth of the GAP insurance industry. On the other hand, it is projected that in the coming years, a greater emphasis will be placed on collaborating with existing auto insurance providers and adopting comprehensive insurance with GAP insurance.
Due to the global financial crisis, the COVID-19 epidemic, and the market's extreme volatility, the GAP insurance market has suffered as a result. Additionally, the auto industry downturn has a negative impact on GAP insurance sales, which lowers revenue. Additionally, many gap insurance companies declared that they will implement digitization in their operations to maintain effective client contact. During the current global health crisis, this issue has contributed to the market expansion for GAP insurance.
GAP Insurance Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; 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.
Global GAP Insurance Market Segmentation:
By Type: Based on the Type, Global GAP Insurance Market is segmented as; Return-to-Invoice GAP Insurance, Finance GAP Insurance, Vehicle Replacement GAP Insurance, Return-to-Value GAP Insurance, Others.
By Application: Based on the Application, Global GAP Insurance Market is segmented as; Passenger Vehicle, Commercial Vehicle.
By Distribution Channel: Based on the Distribution Channel, Global GAP Insurance Market is segmented as; Agents & Brokers, Direct Response, Others.
By Region: According to the forecast for the GAP insurance industry, Asia-Pacific would increase at the quickest rate. This is explained by the fact that the majority of vehicles used for business purposes in the Asia-Pacific region strictly require a commercial auto insurance, which also leads to the purchase of GAP insurance to prevent loss of value. As a result, this is a major driving factor for the market.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.