Damage Claims Workflow
When damage is detected on a vehicle — either through AI analysis or manual inspection — a formal damage claim tracks the issue from detection through resolution. This guide covers the complete workflow: how claims are created, how costs are assessed, how customers are charged, and how to work with insurance.
Claim Lifecycle
A damage claim progresses through these stages:
| Stage | What Happens |
|---|---|
| Detection | Damage identified via condition report comparison, AI analysis, or manual report |
| Claim Created | Formal claim record created linking pre/post condition reports and customer |
| Assessment | Damage type, severity, and estimated repair cost documented |
| Customer Notified | Customer informed of the damage and estimated charges |
| Charged | Repair costs charged to the customer's payment method or deducted from deposit |
| Resolved | Claim closed with resolution notes |
How Damage Is Detected
Automatic Detection (AI)
When AI damage detection is enabled, the system automatically compares pre-rental and post-rental condition photos:
- Pre-rental photos are analyzed and baselined
- Post-rental photos are analyzed for new damage
- If the AI detects damage not present in the pre-rental photos, it flags the finding
- The AI returns a confidence level (high, medium, or low) for each detection
Manual Detection
Operators or field staff can also report damage at any time:
- Navigate to the vehicle in the dashboard
- Submit a damage report with description and photos
- The report is linked to the most recent ride (if applicable)
Customer-Reported Damage
Customers can report damage they notice through the mobile app. The report includes:
- A text description of the damage
- Optional photo upload
- Automatic linking to their current or most recent ride
Creating a Damage Claim
A damage claim connects the damage to the specific rental session:
| Field | Description |
|---|---|
| Customer | The customer who had the vehicle during the rental |
| Vehicle | The damaged vehicle |
| Ride | The associated ride record |
| Pre-Rental Report | Condition report from check-in (baseline) |
| Post-Rental Report | Condition report from check-out (showing new damage) |
| Damage Type | Category of damage (from AI analysis or manual entry) |
| Description | Detailed description of the damage |
| Estimated Repair Cost | Estimated cost to repair the damage |
From Condition Report Comparison
The most common way to create a claim is by comparing condition reports:
Open the Ride Detail
Navigate to the completed ride in the dashboard.
Compare Condition Reports
Click Compare Reports to view pre-rental and post-rental photos side by side, organized by angle (front, rear, driver side, passenger side, interior, odometer).
Review AI Findings
If AI detection is enabled, the system highlights areas where damage was detected with confidence scores. Review each flagged area.
Create Claim
If damage is confirmed, click Create Claim. The system pre-populates the claim with the customer, vehicle, ride, and condition report references.
Add Details
Enter the damage type, description, and estimated repair cost. Attach any additional photos or documentation.
Cost Assessment
Estimated Repair Cost
Enter the estimated repair cost when creating the claim. This can be:
- A preliminary estimate based on visual inspection
- A formal quote from a repair shop
- The actual invoice amount after repair is completed
Charging the Customer
Damage charges can be collected from:
| Source | How It Works |
|---|---|
| Credit/debit card | Charge the customer's card via Stripe payment intent |
| Wallet | Deduct from the customer's wallet balance |
| Security deposit | Capture part or all of the held security deposit |
The claim tracks:
- Card charged — Amount charged to the customer's card
- Wallet charged — Amount deducted from wallet
- Total charged — Combined amount collected
- Stripe Payment Intent ID — For card charges, the Stripe reference
Deposit vs. Direct Charge
If a security deposit was held for the rental, capture from the deposit first before making additional charges. This avoids potential disputes from customers who feel they were double-charged.
Working with Insurance
When the customer has verified insurance, damage claims can be filed against their policy:
Document Everything
Ensure the claim has complete documentation: pre/post photos, damage description, repair estimate, and any additional evidence.
Gather Insurance Details
Pull the customer's insurance verification data — carrier, policy number, coverage types, and limits.
File the Claim
Contact the customer's insurance carrier with the documentation. The pre/post condition report comparison provides clear evidence of when the damage occurred.
Track Resolution
Update the claim with resolution notes as the insurance process progresses.
When Insurance Doesn't Apply
If the customer:
- Has no verified insurance (and chose the damage waiver) → waiver terms apply
- Has no insurance and no waiver → direct charge to customer
- Has insurance but damage is below deductible → direct charge to customer
Claim Resolution
When a claim is resolved, record the outcome:
| Field | Description |
|---|---|
| Resolved At | Timestamp of resolution |
| Resolved By | Which operator resolved the claim |
| Resolution Notes | Details of how the claim was resolved |
Common Resolutions
- Charged in full — Customer paid the full repair cost
- Partially charged — Partial payment collected (e.g., deductible amount)
- Insurance covered — Insurance paid for the repair
- Waived — Claim waived (e.g., damage was pre-existing or minor)
- Deposit captured — Security deposit used to cover repair
Dispute Escalation
If a customer disputes a damage charge:
- The charge may result in a chargeback through Stripe
- The automated chargeback defense system compiles evidence including:
- Pre and post condition report photos
- AI damage detection results
- Signed rental agreement
- Customer's signed condition report acceptance
- This evidence is submitted to Stripe for the bank's review
Strong Documentation Prevents Disputes
The best defense against damage disputes is strong documentation. Ensure condition reports have clear, well-lit photos from all required angles. The AI analysis adds an objective layer of evidence, but clear photos are the foundation.
CRM Integration
Damage reports submitted through the mobile app are automatically forwarded to your CRM system (if configured). The CRM ticket includes:
- Customer contact information
- Vehicle details
- Damage description and photos
- Subaccount/operator context
- Device and app metadata
This allows your customer service team to follow up with the customer outside the Levy Fleets dashboard.
Need Help?
For questions about damage claims or help with a specific case, contact us at support@levyelectric.com.