No one wants to deal with an auto insurance claim. They can be tedious and cumbersome for all parties involved. Fortunately, 2025 has brought insurtech innovations that are helping everyone from insurance companies to mechanics involved in a claim. The right technology makes it easier to seek reimbursements and process reports, saving time and headaches along the way.
Keep reading to learn the six insurtech trends that are redefining auto claims in 2025.
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1. Computer Vision Technology for Damage Assessment
Thanks to computer vision technology, it’s now easier than ever to reach a fair evaluation of damage following a car accident. Traditionally, an adjuster would need to be on-site to do this. But in 2025, anyone filing a claim can upload their photographs to a machine learning-powered system that will use a database of repair photos to make an assessment. The technology is able to create an estimate almost instantly.
Mechanics are reaping the benefits, too. They can start work on repairs more quickly without the disruption from cost disputes with the car insurance company. But even technology has its limits. More complicated damages need human eyes to weigh in and make an evaluation.
2. AI-Driven First Notice of Loss (FNOL) Platforms
When a driver issues a report to their insurance provider about an accident, it’s called the first notice of loss (FNOL). This interaction typically involves phone calls and paperwork as a claimant details their situation to the insurer. Today, however, AI-powered FNOL platforms have streamlined this process.
With the help of AI, anyone in an accident can detail their situation to an app through a voice recording. Then AI generates a claim from those details, with follow-up prompts requesting photos, a police report, and other pertinent evidence. AI can help replace the manual labor of data entry, which helps insurers. And for drivers rattled from an accident, FNOL platforms make it easier to get the ball rolling. Drivers can then seek the assistance of a car accident lawyer in Chicago to move forward with their claim.
3. Real-Time Data
Usage-based insurance (UBI) offers a more personalized approach to insurance that rewards good driving behavior. With better driving habits, drivers can expect lower premiums. UBI has also become an effective way to help insurers prioritize claims.
Data collected at the time of a car accident through insurtech, including braking and speed readings, can give insurers insights into the severity of the accident. Smaller fender benders won’t require the same involvement from a processing standpoint, and settlements can happen quickly. But if an accident is flagged as more severe on account of the data, the insurer may need to work more closely with an adjuster and look at medical documents from the claimant. In short, UBI data makes it easier to divert resources effectively for insurers.
4. Graph Analytics to Uncover Patterns
Insurance companies don’t want to be saddled with issues related to fraud. That’s where graph analytics can come into play as an effective tool for spotting unusual activity. With the help of graph analytics, insurance companies can spot patterns that point to fraudulent behavior. If the same repair shop services multiple accidents, for instance, that could be an indication that those accidents aren’t real. Insurers can note these situations, investigate further, and ensure that only legitimate claims are seen.
5. Automated Medical Bill Review Systems
When someone sustains an injury during a car accident, it extends the insurance claim process. Insurers have to look over medical reports and bills, and they’ll need expert guidance as they try to unpack the numbers associated with treatment costs.
Automated medical bill review systems have made this task easier thanks to AI. AI-powered systems can look at the scope of services for a given condition and flag ones that are unnecessary. They can also spot inaccuracies and unusual treatments that don’t align with recommendations. Insurers can steer clear of fraud and make sure that they are paying for what is truly essential.
6. Faster Fund Transfers
While it can seem like a long time from the FNOL to a claim approval, eventually, most claimants will reach that milestone. And, with the help of claimant apps, they can receive their compensation more quickly. Apps allow quick transfers to bank accounts, and claimants can even check the status of their transfer.
Apps offer more transparency and efficiency in the claims process. And as drivers try to pick up the pieces after an accident, getting that peace of mind is critical. They’ll know when they have the funds to offset medical bills or car repairs.
Making the Claims Process Better with Insurtech
The auto claims process used to get bogged down in back-and-forth communication, manual tasks, and inconsistencies. Technological advances have improved the situation for claimants, insurers, and other entities tied to a claim. With tools like claimant apps, AI-driven FNOL, and automated bill review systems, the claims process just got faster.
Insurers can avoid fraudulent situations and keep costs down. And drivers can know that they won’t have to jump through as many hoops to receive compensation. The rise of insurtech operations has led to improved timelines and outcomes in auto claim situations.
