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ARTIFICIAL INTELLIGENCE & TECHNOLOGY

Smart Repairs: How AI is Improving Auto Body Shop and Insurance Interactions

01 September 2025 · By Gema Carreño

Also published by: Insurance Newsnet

Auto repair times and repair costs after an incident have surged by 49% in the last decade, outpacing the 31.7% increase observed in the Consumer Price Index (CPI) during the same period. One reason for the continued increases is that the claims process is still heavily plagued with manual steps, hindering collaboration between insurance companies and repair shops.

Fortunately, there is hope on the horizon. Recent advancements in AI, such as visual intelligence and digital insurance claims processing, are helping insurers and auto repair shops accelerate processes and eliminate much of the excess back-and-forth negotiations required to resolve vehicle damage claims. Here’s a deeper look at how:

Standardizing damage assessments

Assessing vehicle damage has traditionally relied heavily on manual inspections, which can be prone to subjective judgment and human errors. Many times, customers are also asked to submit visual evidence (photos and videos) of damage more than once, a tedious process that can negatively impact customer satisfaction scores.

According to a J.D. Power report, customer satisfaction scores decline as the number of times they need to submit photos of vehicle damage to insurers increases. For instance, with just one photo submission, scores were 875. However, scores decreased to 837 if two photo submissions were required, 806 for three or more, and so on. 

As digital-savvy customer bases grow, insurers need a standardized and transparent way to receive, store, and evaluate vehicle damage. Visual intelligence, a type of computer vision AI that uses advanced algorithms and deep learning techniques to analyze images and videos, can provide far greater accuracy and speed. 

Insurers can use Visual Intelligence to ensure a fast and consistent way to evaluate damage and estimate repair costs from photos and videos, especially during the negotiation process between insurers and auto repair shops. 

When a vehicle arrives at the workshop, repair specialists might need to add further details to the case, such as additional photos or some other overlooked details. Traditionally, the repair shop would notify the insurer, who might dispatch an expert to negotiate on-site, significantly delaying the resolution process. 

However, workshops can now directly connect to the case and upload additional evidence immediately. The level of precision visual intelligence provides helps ensure that all necessary repairs are accounted for, reducing the likelihood of repeated photo submissions, missed damage, or unnecessary repairs. 

This AI-driven approach also enables insurers to build a comprehensive, ongoing database of visual evidence and, by applying predictive analytics, achieve more accurate damage assessments over time. By incorporating visual intelligence technology, negotiations can be much more streamlined, allowing for quick insurer approval. 

Faster turnaround times & happier customers

The average repair cycle time from first notice of loss (FNOL) to returning the vehicle to the claimant now stands at 23.1 days, a significant increase of 6.2 days compared to 2022 and more than double the pre-pandemic average of 12 days. 

Communication between mechanics, insurance adjusters, and customers is critical to resolving claims quickly. Integrating AI can help improve accuracy and streamline communication, making the repair and claims process more efficient. Insurance companies can approve claims faster, auto body shops can begin repairs sooner, and customers get their vehicles back in less time. 

Ultimately, this reduction in turnaround time boosts customer satisfaction and helps repair shops manage their workflow more effectively. Nothing frustrates customers more than delays and inconsistent service. According to JD Power’s report, only 35% of insurance customers said the estimation process was "very easy," and 33% needed to contact their insurer to ask additional questions after a digital update, causing satisfaction to fall. 

By leveraging AI, auto body shops and insurance companies can offer quicker, more reliable service. Customers receive precise, detailed estimates and can track the progress of their repairs in real time. This level of transparency between insurers, auto repair shops, and customers builds trust and helps ensure customers feel valued and informed.

Improving communication, collaboration, and customer satisfaction

AI is transforming negotiations between auto body shops and insurance companies for the better. By injecting a new level of efficiency, accuracy, and transparency, the technology is improving negotiation processes that were once riddled with inefficiencies and frustrations, resulting in a better experience for everyone. 

Discover how the evolution of auto inspections with AI can improve collaboration between repair shops and insurers speeding up the repair process? Contact us!

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