How Virtual Claims Are Becoming the New Normal

The COVID-19 pandemic has dramatically changed how many companies and customers do business. From forced quarantines to city lockdowns, the ability of people to travel and do their work has been modified. One industry that has been affected by COVID-19 is automobile insurance companies that have been forced to pivot to virtual claims quickly. 

How COVID-19 Changed Insurance Claims 

COVID-19 has changed how car insurance companies handle claims from customers. In the past, the process for filing a claim was a little different. First, you contacted the company and submitted the claim by sharing information about the accident, such as who was driving, location and time, and made sure you filed a police report.

Next, your insurance company would assign you an adjuster for the claim. They would contact you and ask questions or request more information. They would inspect the damage or make you take the car to a certified repair shop or claims center to check the damage. Usually, the adjuster would come to your home to see the vehicle. 

Before COVID-19, car insurance companies were already exploring virtual claims with 95% of them using it or considering it. Today, many companies have switched to virtual claims and created mobile apps to make the process easier. The apps allow you to upload photos or videos of damage, receive repair estimates and even get claim payments. 

The process for filing a virtual claim can start with you downloading an app from your insurance company on your phone. Then, you will take photos of your car by following the app's instructions and upload them to the app. You can get an estimate of your claim and receive a payment. The new virtual process eliminates the need for adjusters to see the car in most cases.

How Auto Body Shops Have Adapted

Auto body shops have also been forced to adapt to COVID-19 changes. In the past, some people would take their cars to a mechanic to get an estimate for the damage before filing a claim with their insurance company. 

Now, people are trying to avoid going out and being near others because of the pandemic, so they may not bring a car for an inspection. Many worry about getting sick and do not want to take the risk of seeing a mechanic or being in an auto body shop.  

Some people are using online calculators to see how much a repair would cost. This allows them to estimate the cost of repairing the damage on their vehicles without leaving the house. A calculator may not be as accurate as a mechanic, but it can provide some useful information.  

Virtual claims have also affected how auto body shops handle other parts of the process. Many of them have started doing vehicle sanitizations for those who have to bring in their cars for repairs. Sanitizing the car makes it safer for the mechanics. 

In addition, some auto body shops have been helping with photo damage analysis. They examine the pictures that people take with their phones of their cars. Mechanics have the training and experience to look at the pictures and give estimates. 

How Customers Are Embracing Virtual Claims

Most customers are embracing virtual claims and prefer the process. It is easier to handle things on their own by using an app and uploading photos. This tends to be a faster process than waiting for an adjustor to inspect the car and provide an estimate. Customers have greater control and are more involved. 

Many people are used to doing business virtually, such as having their doctor's appointments through telehealth services. Switching to virtual claims for car insurance does not feel that different for them. The internet has made connecting with companies and professionals much easier, and most people actually prefer it. It is easier and faster than driving to a location to receive help. 

This shift may become permanent even after the pandemic ends. Claims adjusters are getting used to working from home and not going out to see people's cars. In general, this makes the process faster and easier most of the time. 

However, there are concerns about fraud related to virtual claims. It is possible for someone to send false photos that have been altered. They may also send photos of someone else's car that looks like their model and make. In addition, they may be able to file claims virtually with several companies. Insurance companies are working on software that will detect fraud and prevent it. They are also uploading and saving all photos to the cloud to prevent duplication.  

If you have to file a claim with your car insurance company, there is a good chance that it will be virtual. Most companies and consumers have embraced this change during the pandemic.