Total-loss and GAP claims worked from the insurer's first letter to the lien release.
Bluegrass builds total-loss and GAP claims systems for auto lenders, banks and credit unions. The system checks the insurer's settlement, disputes short valuations, files GAP claims and requests add-on refunds, while your team approves every dispute and decision.
Whatever is not recovered from the insurer, the GAP provider or a refund stays on the borrower's account, and much of it is eventually charged off. Recovery depends on how persistently a small team chases several parties.
What total-loss and GAP claims involve today
After a total loss the insurer pays the lender, as loss payee, usually the actual cash value, which is often less than the borrower owes. The servicing team then has to recover the rest from several parties.
Claims stay open for months, low valuations go unchallenged and GAP claims are reduced or denied for a missing document. Because the work is mostly reading and chasing, measured in dollars recovered, it is one of a lender's clearest cases for AI.
How automated total-loss recovery works
- 01
Open the claim
A notice of loss from the insurer, borrower or your team opens the claim, and the system matches it to the loan and gathers the policy, payoff and add-on products.
- 02
Check the settlement
The settlement letter and valuation report are checked, including the comparable vehicles, the deductible, condition and mileage adjustments and any taxes and fees the state requires the insurer to pay.
- 03
Dispute and follow up
Where a valuation looks short, a dispute is drafted for a person to approve; appraisal deadlines and unpaid claims are tracked and followed up.
- 04
File the GAP claim
Where a balance remains and the borrower bought GAP coverage, the claim is filed with the required documents, and any reduction or denial is checked against the contract.
- 05
Close the file
Payments and add-on refunds are applied and the lien is released once the claim is paid. Any remaining balance, owed by or due to the borrower, goes to the right team with the file.
Where people stay in the loop
Every dispute, appraisal demand, borrower letter and decision on a remaining balance is approved by your team before anything is sent or posted. The system is tested on your closed claims first, one claim type at a time.
The systems it works with
The system draws on your servicing system, insurance tracking records, insurer and GAP administrator portals, add-on product providers and the electronic lien and title system. Every document and decision is filed to the account.
When to build it, and when to buy it
A few specialist providers handle total-loss recovery, from outsourced services to AI products built for auto lenders, and with modest claim volumes one of them may give you the best result.
A custom build makes sense when your volume makes recovery fees add up, when claims are worked across several systems, or when claims should share one record with servicing and collections.
We hold no reseller agreements, partner quotas or revenue share with any vendor, so a recommendation to buy is made on its merits.
What this work costs you today
A quick way to put a number on the problem before talking to anyone, using your own figures rather than ours.
Enter your volume and the minutes each one takes to see what the work costs in a year.
The numbers stay in your browser and are not stored or sent anywhere. Bring the figure to the first call, since it is the baseline any system should be measured against.
Questions about total-loss and GAP claims
- Who approves a dispute with an insurer?
- A person on your team approves every dispute and appraisal demand before it is sent. The system drafts it with evidence such as comparable vehicles and policy terms, and tracks the deadlines.
- Does it work with GAP waivers as well as GAP insurance?
- It works with both, reading each contract for its maximum benefit, deductible coverage and exclusions and assembling the claim the administrator requires.
- Can it work through claims that are already open?
- A backlog of open claims is often the best place to start, since the uncollected money can be counted. The evaluation tests the system on a sample before anything is promised.
Related systems
A senior team that has done this before
We are a small, entirely senior team with fifty years of combined AI engineering, multiple granted patents and Y Combinator founders, from Yale, MIT, McKinsey, Goldman Sachs, Microsoft and Vista Equity Partners. The people who scope your work are the people who write the code.
Selected work
We built the AI transformation roadmap for a top-50 P&C brokerage, and it is saving the firm millions of dollars in vendor fees it did not need to pay.
Clients include some of the largest banks, RIAs, fintechs and AI labs, as well as a top-3 P&C carrier, a top-10 P&C brokerage, a top-5 trucking brokerage, a leading specialty MGA and a leading trucking MGA.
We run only 3 to 5 engagements at a time, so that every client works directly with the senior team.
About the team- Dozens
- of insurance companies, RIAs, banks and fintechs we have worked with
- 50 yrs
- combined AI engineering experience
- 10+ Patents
- granted to members of the team
- 100%
- of the IP we build is assigned to you
Find out whether this is worth building for your business.
A 30-minute call with an engineer usually shows whether this is worth building. Within a week you will have a free written point of view, including whether a packaged product would serve you better.