Guaranteed Auto Protection (GAP) Insurance Market Report 2026

The guaranteed auto protection (gap) insurance market size has grown rapidly in recent years. It will grow from $4.36 billion in 2025 to $4.8 billion in 2026 at a compound annual growth rate (CAGR) of 10%. The growth in the historic period can be attributed to increase in vehicle financing penetration, growth of auto leasing markets, depreciation trends in vehicle values, dealership-led insurance offerings, consumer credit expansion.

The guaranteed auto protection (gap) insurance market size is expected to see rapid growth in the next few years. It will grow to $7.19 billion in 2030 at a compound annual growth rate (CAGR) of 10.7%. The growth in the forecast period can be attributed to rising electric vehicle adoption, increasing average vehicle prices, growth of online auto sales platforms, integration with fintech insurance solutions, evolving regulatory clarity. Major trends in the forecast period include increasing integration of gap coverage in auto financing, rising demand for digital policy distribution, growing adoption of gap insurance for leased vehicles, expansion of embedded insurance models, enhanced focus on consumer awareness.

Increasing vehicle sales are playing a key role in driving the growth of the guaranteed auto protection (GAP) insurance market in the coming years. The rise in vehicle sales is primarily driven by growing demand for transportation, consumers viewing vehicles as lifestyle products, higher income levels, and other factors. Guaranteed auto protection (GAP) insurance assists users by covering the difference between the current value of a vehicle (which standard insurance pays) and the actual amount owed on it in the event of an accident resulting in significant damage or a total loss. For example, in June 2023, reports from the Society of Motor Manufacturers and Traders (SMMT), a UK-based trade association, indicated that sales of passenger cars in the UK are projected to increase by 25.8%, from 140,958 units in 2022 to 177,266 units in 2023. Consequently, the growth in vehicle sales is boosting the expansion of the guaranteed auto protection (GAP) insurance market.

Major companies in the guaranteed auto protection (GAP) insurance market are focusing on technologies that enhance risk assessment, streamline claims processing, and improve customer engagement, ultimately providing more tailored and efficient coverage options for consumers. One such approach involves optimal logistics strategies to maximize efficiency in delivering insurance services. For example, in August 2024, Opteven, a France-based insurance company, launched its Combined Return to Invoice and Financial Shortfall GAP Insurance. This insurance product covers the difference between the insurance payout and the original purchase price of a vehicle if it is declared a total loss due to events like fire, theft, or flood damage. By implementing these technologies and strategies, companies aim to better meet consumer needs and improve overall service delivery in the GAP insurance market.

In October 2025, Protective Life Corporation, a US-based insurance and financial services company, acquired Portfolio Holding Inc. for an undisclosed amount. With this acquisition, Protective seeks to strengthen its portfolio of wealth management and financial institution solutions by incorporating Portfolio Holding Inc.’s specialized advisory and technology offerings to better support dealers and financial institution clients. Portfolio Holding Inc. is a US-based financial services technology company that focuses on delivering advisory, planning, and portfolio management solutions designed for dealer networks and financial institutions.

Major companies operating in the guaranteed auto protection (gap) insurance market 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, 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., Motor Gap Limited.

North America was the largest region in the guaranteed auto protection (GAP) insurance market in 2025. 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, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

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