Guaranteed asset protection insurance guaranteed to reach $12b by 2033

Demand continues to rise as vehicle accidents increase and more consumers finance new and used cars. 

The global guaranteed asset protection (GAP) insurance market was valued at $4.25b in 2024 and is expected to reach $4.76b in 2025, according to Market Data Forecast.

Industry forecasts show the market could grow to $11.78b by 2033, supported by an annual growth rate of 11.99% from 2025 to 2033.

Demand for GAP insurance continues to rise as vehicle accidents increase and more consumers finance new and used cars. 

GAP policies cover the difference between a vehicle’s actual cash value and the remaining loan balance if the car is damaged beyond repair or written off. 

The product is commonly offered by credit providers at the point of sale, and most auto insurers also include it as an optional add-on. 

Buyers who pay for this coverage upfront may be eligible for a refund if the vehicle is sold or refinanced.