8 Innovations Motor Insurance customers actually want in 2026

The motor insurance industry is undergoing rapid transformation. While insurers traditionally focused on pricing and coverage, today's customers want a seamless, tech-enabled experience that matches the convenience of the banking, e-commerce, and mobility sectors.

With the rise of AI auto insurance, companies now have the tools to modernize operations. But the real question remains: What do customers actually want?

Here are the top innovations policyholders expect insurers to prioritize in 2025, based on emerging trends across global markets.

#1 - Touchless Claims

The era of paperwork-heavy, manual claim submissions is ending. Customers now expect fully touchless claims experiences, where they can initiate, submit, and track claims from their mobile phones. Touchless claims reduce customer effort, eliminate unnecessary follow-ups, and drastically shorten settlement cycles, which is a win for both insurers and policyholders.

#2 - AI chatbots for faster support

Customers no longer want to wait on hold for simple queries. AI-powered chatbots handle everything from policy questions to claim status updates.

In the world of AI insurance claims, chatbots aren't merely customer service add-ons; they act as a 24/7 support agent that improves response times and reduces call center workloads.

#3 - Digital Onboarding

Whether it's purchasing a policy or switching insurers, customers wish for a digital-first onboarding with minimal friction.

Digital KYC, e-signatures, guided form submissions, and mobile-based verification are becoming standard expectations. Insurers that deliver fast, convenient onboarding see higher conversion rates and improved customer loyalty.

#4 - Instant Payouts

Waiting days or weeks for claim settlements is no longer acceptable in a digital era. Today's customers expect real-time payouts once their claim is approved.

Paired with claims automation AI, insurers can assess damage, validate claim legitimacy, and disburse payments almost instantly, creating a significantly better experience.

#5 - Remote Policy Renewal

No more agent visits or branch submissions. Customers want completely remote renewals that can be completed in minutes.

Policyholders log into an app, view renewal terms, make changes, and pay digitally. This convenience is now a baseline expectation across the industry.

#6 - Remote Damage Reporting & Instant Approvals

This is one of the most transformative innovations customers expect - The ability to report accidental damage remotely using their smartphone.

With tools like Inspektlabs' vehicle damage inspection app, customers can capture photos or videos of the damaged vehicle and instantly receive AI-generated assessments.

Insurers can leverage automated vehicle inspection to:

• Enable remote FNOL (First Notice of Loss)
• Automate damage detection
• Reduce the need of in-person surveys
• Approve low-severity claims within minutes

Remote assessments cut claim processing times from days to hours and significantly improve overall customer satisfaction.

#7 - Personalized policy comparison (based on customer persona)

Today, customers expect the same level of personalization they experience in banking or online shopping.

They want smarter policy comparison tools that analyze their driving patterns, vehicle type, location, usage behavior, and risk profile to automatically recommend the best coverage.

The future of AI auto insurance lies in offering tailored policy bundles instead of one-size-fits-all offerings.

#8 - Full transparency on repairs, cost, and premium adjustments

One of the biggest frustrations in motor insurance is the lack of transparency in how repair costs are calculated and how they impact premiums.

Inspektlabs helps solve this through comprehensive vehicle condition reports, which provide image-backed, AI-generated details of every identified damage.

This enables insurers to:

• Show customers exactly what was damaged.
• Display repair cost estimates clearly.
• Explain premium increase with visual evidence
• Offer more transparent, data-backed decisions.

Customers overwhelmingly prefer insurers who provide clarity instead of confusing or subjective assessments.

Conclusion

The future of the industry isn't just about digitization. It is also about delivering meaningful innovation that reduces effort, increases trust, and improves overall transparency.

From touchless claims to remote inspections powered by AI auto insurance, the companies that adopt customer-centric innovation early will lead the next phase of growth.

With Inspektlabs, insurers can accelerate this transformation and deliver the seamless, transparent, and reliable experiences that modern policyholders expect.