Jim Gilpin
By Jim Gilpin on June 01, 2019

An Insider’s View to GAP Claims Payments

Introduction to GAP Claims Processing

Indirect lenders across the country are required to finance the price of their dealer’s GAP contracts and provide the associated GAP Claim Processing. These contracts are considered debt cancellation contracts, not insurance. If a borrower totals their vehicle and the borrower bought a GAP contract, the lender is agreeing to cancel the difference between the borrower’s insurance payoff and the outstanding balance of the loan.

Larger indirect lenders work with thousands of dealerships.  Many of these dealers have their own captive companies that provide GAP and other F&I products.  This business practice leads to hundreds of GAP debt cancellation contracts that the loan servicer must process.  GAP claims expertise is required to understanding the subtle differences in these contacts, which will maximize your GAP claim recovery.

Gap Claims Processing, when combined with VSI Insurance, or Primary Claims Service enables the lender to maximize recoveries from damaged collateral within the portfolio

Two of the largest indirect lenders in the country have run A/B testing between their loan servicing GAP claims processors versus Miniter Group’s GAP claims experts.  In both cases, Miinter Group’s GAP claims experts exceeded the recovery targets defined in these tests.


Why Outsource GAP Claim Processing?

Miniter Agents process hundreds of GAP claims per month from hundreds of GAP Debt Cancellation Policies.

  1. Collect all legitimate claims proceeds per policy/waiver parameters.
  2. Free up loan servicing personnel for other activities.
  3. Expertise in all dealer-based GAP contracts across all 50 states.
  4. Visibility by the dealer.  We report the recovery results by the dealer.  We monitor loss recovery parameters for dealers with historically challenging GAP carriers/administrators.
  5. Shorten claim payment cycle time.

Miniter’s GAP Claim Payment Process


  1. Lender files GAP claim to Miniter’s online claims system


  1. Review submission for required lender documentation, request any missing documents.
  2. File claim with appropriate GAP carrier/administrator
  3. Request claim status every 72 hours
  4. Review carrier/administrator claims worksheet
  5. Challenge any deductions from payment not supported by GAP waiver
  6. Provide payment to the lender
  7. Provide dealer performance reporting and other customized reporting.


Outsourcing your GAP claims payment processing to experts who do this full-time will increase your bottom line.  Our expertise will ensure that all legitimate claim proceeds will be paid based on policy parameters.  We will monitor each of your dealers to make sure that full GAP risk is being transferred to their GAP provider.

Please feel free to reach out anytime and Ask Us Anything.


SEE ALSO: GAP Claims: Why You Need Claims Tracking Expertise


Published by Jim Gilpin June 1, 2019
Jim Gilpin