Imagine if insurers and repair facilities had a way to detect Total Loss as early as the first notice of loss (FNOL) using AI.
The auto repair industry is undergoing a significant transformation, thanks to the advent of AI-powered damage detection technology. This innovative approach is redefining how vehicle damage is assessed and when total loss claims are identified.
Let’s discuss how early detection of Total Loss Claims can save the industry over $1-billion yearly.
According to Statistics & Autosphere, 2-million insurance car collisions are claimed per year. Of these, 27 %, or 540,000, are Total Loss Claims per year based on repairerdrivennews.com. The problem with these claims is that by the time a claim is declared a total loss, many fees have been incurred and significant time (often months) has passed. These could have been saved if the right process and technology had been in place to enable Early Total Loss Detection at the FNOL. Let’s analyze the fees one by one…
Vehicles’ Towing fees
On average, towing a vehicle after an accident costs $200 per trip hansmaautomotive.com. For Total Loss (TL) Claims, that’s $400 in towing fees: one trip to the repair facility (bodyshop) for the manual inspection and declaration of the total loss, and another trip to the Recycling Centre for dismantling.
Now imagine if Early Total Loss Detection was in place, early enough to save that extra towing trip to the repair facility. This is possible with today’s technology. Early TL detection at FNOL will save unnecessary towing fees of $200 per claim.
That is $200 X 540,000 (TL Claims per year) = Estimated Annual Savings of $108 Million.
Replacement Car Rental fees
According to thebalancemoney.com: “It would not be shocking to see a total-loss claim take 30 days or more to finalize using traditional processes.” At least 15 of these days are spent waiting for the vehicle to be estimated, during which the car owner is entitled to a replacement car that typically costs between $30 and $50 daily.
Now imagine if Early Total Loss Detection was in place, early enough to save 15 days of waiting in the Repair Facility for a Human Estimator to declare it a Total Loss. This is possible with today’s technology. Early TL detection at FNOL will save an average of $600 in unnecessary car rental fees per claim (15 days X $40 average daily car rental rate).
That is $600 X 540,000 (TL Claims per year) = Estimated Annual Savings of $324 Million.
Storage fees
The average daily storage fee for cars involved in insurance claims varies widely across Canada, with indicative figures ranging from $50 to $100 per day, averaging $75.
Now imagine if Early Total Loss Detection was in place, early enough to save 15 days of waiting in the Repair Facility for a human estimator to declare it a Total Loss. This is possible with today’s technology. Early TL detection at FNOL will save an average of $1,125 in unnecessary storage fees per claim (15 days X $75 average daily storage rate).
That is $1125 X 540,000 (TL Claims per year) = Estimated Annual Savings of $607.5 Million.
Less errors
Accurate & Consistent Damage Assessments: AI algorithms provide consistent and precise damage assessments, reducing the likelihood of human errors. This leads to more accurate repair estimates and better decision-making, improving the overall quality of service. Potential savings could be significant, reducing costly reworks and disputes.
Less pollution
Reducing the need for multiple tow truck trips by identifying total loss vehicles early can significantly decrease fuel consumption and emissions. Fewer tow truck operations mean less air pollution and a lower carbon footprint, contributing to a cleaner environment.
Better customer experience
With quicker damage assessments and repair decisions, customers experience shorter wait times for their vehicles to be returned.
Real-time assessments and clear communication provide customers with a transparent view of the repair process, building trust and confidence.
AI-powered systems can offer seamless and efficient interactions, making the entire claims and repair process smoother for customers through an intuitive chat.
Trueclaim’s ETLD — Early total loss detection assistant
In the event of an accident, car owners can now receive an instant message from an AI-powered chatbot guiding them to take clear photos of the damaged vehicle. These images are then analyzed in real-time by advanced AI algorithms, providing a detailed and accurate assessment of the damage and immediately detecting total loss claims.
The implementation of early total loss detection by AI could potentially save repair facilities and insurers in Canada approximately $1.04 billion annually along with higher customer satisfaction.
For more information regarding AI Early Total Loss Detection technology visit: www.trueclaim.ai