Smartphone AI Detects Hidden Car Damage: Insurance Industry Adopts Game-Changing Tech

The controversy around Hertz’s AI car scanners charging renters for microscopic dents just took a darker turn. An Israeli startup now offers insurers a smartphone-powered tool to spot invisible vehicle damage—potentially reshaping policy claims and customer disputes nationwide.

How Smartphone AI Scans Reveal Invisible Damage

Click-Ins’ AI technology, developed over seven years, bypasses traditional inspection tunnels. Policyholders receive a web link to capture eight 360-degree smartphone photos of their vehicle. The proprietary algorithm then erases reflections, dirt, and shadows to expose scratches, dents, or corrosion undetectable by the human eye. Unlike Hertz’s camera tunnels, this system requires no specialized hardware—only a standard smartphone camera.

For insurers, this creates a digital “baseline” of a car’s pre-policy condition. When claims arise, AI compares new photos against this benchmark, automating damage assessment. As CEO Josh Parsons explained to Pymnts (2024): “An adjuster shouldn’t need to visit minor incidents like drive-through scrapes.” The result? Faster claims and reduced labor costs.

Insurance, Auctions & Dealerships: Sector-Wide Impact

The implications stretch far beyond insurance:

• Vehicle Auctions: Houses like Manheim or Copart could document car conditions in minutes, replacing physical inspections.
• Transport Firms: Companies like Montway or Sherpa could record pre/post-shipping damage via AI scans.
• Dealerships: Trade-in evaluations become streamlined, with AI spotting prior repairs or flood damage.

Industry analysts note broader ethical questions. While the tech cuts costs, it risks overreach—like penalizing drivers for pre-existing flaws or disputing legitimate claims. Forbes (2023) highlighted similar concerns in AI-powered insurance tools, urging transparency in automated decisions.

As AI reshapes auto assessments, balancing efficiency with fairness remains critical.

Must Know

Q: How accurate is smartphone-based AI damage detection?
A: Click-Ins claims 99% precision in lab tests by removing environmental noise (e.g., glare, dirt). Real-world accuracy depends on photo quality and lighting.

Q: Will this replace human insurance adjusters?
A: Partially. The AI handles minor claims (e.g., scratches under 6 inches), freeing adjusters for complex cases. Major collisions still require in-person reviews.

Q: Can dealerships use this for used cars?
A: Yes. The tool identifies paintwork, prior accidents, or alignment issues—critical for pricing trade-ins.

Q: Is my data secure?
A: Click-Ins states images are encrypted and deleted after analysis, complying with GDPR and CCPA standards.