GAP insurance polices differ in their terms so read completely through the terms of your policy to see if why the reason they are denying the claim is mentioned in your documents. It could be that if you missed a loan payment earlier on and so payments were rearranged with the financial institution and that was enough to allow the claim to be denied according to the wording of your GAP policy.

If the terms of the policy were not abided by, than an insurance company can deny claims. You can try to continue to work with the claims adjuster of the GAP insurance company on your claim or if you feel that you are being treated unfairly by your GAP insurance provider you may feel the need to contact your state's insurance regulator.

With this state agency you may file a compliant or at least make sure that the GAP insurance company is following state insurance laws by what they are doing.