AI-generated car damage is turning into a real insurance fraud issue, with Admiral linking a sharp rise in cases during 2025 to manipulated images and fabricated supporting materials. The problem is no longer limited to suspicious paperwork. Photos of damaged vehicles can now be edited to make a loss look worse or to help support a duplicate filing.
According to a BBC report, one filing used an AI-edited number plate on a damaged Land Rover, while a similar image with a different plate appeared in a second case.
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Another image made rear-end damage look more severe than it was. Admiral said those submissions were caught by its fraud team and denied before any payout was made.
Admiral also said fraud rose 71% in 2025 from the previous year, and tied part of that increase to easier access to AI tools that can alter images and
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