Home Civil Law Colossus Personal Injury Calculator: What You Need To Know

Colossus Personal Injury Calculator: What You Need To Know

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The Colossus private damage calculator is a PC claims software program program that many automobile insurance coverage firms use to generate a variety of what a settlement worth is for an damage primarily based on varied components and placement. The premise behind claims evaluation software program is that settlement values might be regularly pushed decrease over time by calculating a median of what a specific damage is price, after which providing much less.

While the Colossus private damage calculator may theoretically have some worth within the claims dealing with course of, the fact is that this software program has been abused by insurance coverage firms and has itself been the idea of multiple unhealthy religion lawsuits and state legal professional normal settlements.

Rather than being certainly one of many components for claims adjusters and auto insurance coverage firms to contemplate in figuring out the settlement worth of a automotive accident sufferer’s accidents, normally it finally ends up being the one issue that’s utilized by auto insurance coverage firms. Claims adjusters have restricted authority to barter past the vary of what the claims software program settlement vary is for a given damage, and infrequently can come under hearth and even be financially penalized for doing so.

Most auto insurance coverage firms strictly prohibit their claims adjusters from settling a declare for any quantity over the settlement vary calculated by the Colossus laptop software program program. i’ve many claims adjuster pals from being on this enterprise for nearly 30 years, and most inform me that even when they wished to, adjusters nonetheless wouldn’t have the authority to settle. Adjusters complain to me that they’ve been relegated to gathering and inputting info into the pc and conveying the pc’s non-negotiable settlement valuations, simply as insurance coverage protection attorneys wish to complain to me that they only “carry water” however adjusters hardly ever hearken to them anymore.

This is all clearly extremely unfair for automotive accident damage victims. Setting apart the truth that the software program might be – and is routinely – deliberately manipulated by the insurance coverage firms, it is usually topic to fully mis-evaluate a declare primarily based on the knowledge {that a} claims adjuster inputs into the claims evaluation software program.

What is the Colossus private damage calculator?

The Colossus private damage calculator is a claims dealing with laptop software program program that’s designed to low-ball and aggressively defend automotive accident lawsuits. It “calculates” artificially low settlement affords on automotive accident victims’ ache and struggling settlements, thereby permitting insurers to economize and improve revenue margins.

The objective of the software program is to not decide the truthful settlement worth for a automotive accident sufferer’s accidents and ache and struggling compensation declare.

The objective is as an alternative to methodically drive down auto accident settlement quantities to artificially low ranges so the insurance coverage firms can save increasingly cash over time, no matter whether or not they’re settling professional accident claims.

What is the aim of the Colossus private damage calculator?

The objective of the Colossus private damage calculator is to scale back the settlement worth of an damage over time, which in flip permits the insurers to scale back the scale of settlement payouts and improve earnings.

In truth, gross sales literature printed by the maker of the Colossus private damage calculator boasted that “‘the program will immediately reduce the size of bodily injury claims by up to 20 percent,’” in response to the Consumer Federal of America.

For Allstate, that proved to be the case, in response to EnterpriseWeek. Over a ten-year interval, “the amount of money [Allstate] paid out per premium dollar in car accident injury cases declined from about 63 cents to 47 cents,” which is roughly a 25% drop.

How does the Colossus private damage calculator work?

Insurance adjusters feed varied case and damage information inputs into the pc software program program, which then makes use of that information to assign a settlement vary for an auto accident sufferer’s bodily damage declare.

The info that adjusters enter into the Colossus private damage calculator should correspond to a number of of the 750 accidents and a number of of the 10,720 guidelines or worth drivers which can be acknowledged by the software program.

The worth that the pc software program determines for a automotive accident sufferer’s ache and struggling compensation declare is meant to be primarily based on points assigned to the worth drivers related to every of the sufferer’s accidents. However, every insurance coverage firm is free to regulate (manipulate) the pc claims evaluation program with its own worth drivers which might elevate or decrease the settlement worth for an damage.

How are automotive accident victims harmed by adjusters’ use of the Colossus private damage calculator?

This claims evaluation program is intentionally designed NOT to supply full settlement worth for an damage. In addition, claims adjusters are often required by auto insurance coverage firms to withhold, modify and/or decrease the settlement supply primarily based on the inputs entered into the Colossus private damage calculator, which has led to unhealthy religion insurance coverage lawsuits in opposition to multiple auto insurance coverage firms. Claims adjusters are additionally not allowed to settle a declare for greater than what the Colossus claims evaluation laptop software program says, which has additionally led to unhealthy religion litigation and lawsuits.

The impact of claims evaluation software program like that is that automotive accident victims are coping with an auto insurance coverage firm that has restricted settlement negotiations to a man-made and infrequently arbitrary settlement vary that fails to take many essential components under consideration.

In addition, auto insurance coverage firms often supply bonuses and monetary rewards to adjusters who settle inside and even on the legislation finish of the settlement worth ranges recognized by the Colossus private damage calculator.

Allstate’s Colossus private damage calculator

In 2010, Allstate acquired into vital nationwide hassle for its abusive use of the Colossus private damage calculator to pressure unsuspecting automotive accident victims into accepting low-ball, undervalued settlement affords on their ache and struggling compensation claims.

As a consequence, Allstate needed to enter right into a “Multi-State Market Conduct Regulatory Agreement” with the Insurance Commissioners of 48 states, together with Michigan, to alter the way it makes use of the claims evaluation software program in its auto insurance coverage claims dealing with course of.

In Michigan, Allstate promised to:

  • Not require insurance coverage claims adjusters “to settle claims based solely on the value recommended by the Colossus software program.”
  • No longer reward or “provide incentives” to its insurance coverage claims adjusters for settling automotive accident claims for the quantities specified by the Colossus laptop program.
  • Notify claimants when the Colossus software program program is getting used to regulate their claims. The notification will embrace the next disclosure: “One of the tools that our claim personnel may use in evaluating your claim is a computer program known as Colossus, licensed by Computer Sciences Corporation. Colossus uses a broad range of information about your injury, treatment, and prognosis to determine the severity of your injury. Based on this information, Colossus makes a recommendation as to the value of your injury. The Colossus recommendation is only one factor among many that our adjusters consider in reaching a decision as to the overall evaluation of the claim.”

Allstate refuses to provide settlement worth vary

Even although Michigan’s Insurance Commissioner has beneficial that Allstate present the settlement worth vary to automotive accident victims who’ve made ache and struggling compensation claims, Allstate has refused to take action.

In its June 2014 Market Conduct Examination of Allstate Property and Casualty Insurance Company, Michigan’s Insurance Commissioner famous that Allstate “does not provide a copy of the Colossus evaluations to claimants.”

After acknowledging that Colossus’s maker said on its web site that “Colossus evaluations are provided by most insurance companies,” the Insurance Commissioner beneficial that Allstate “follow this practice.”

Allstate refused: “We are not required to provide Colossus evaluations.”

It is believed that the Insurance Commissioner has taken no subsequent motion to implement its advice.

How your legal professional impacts the Colossus private damage calculator

Your selection of a automotive accident legal professional that will help you after a automotive accident can have an unlimited impression your case’s settlement worth as decided by the software program.

Cases accept more cash and sooner when a automotive accident sufferer’s legal professional ranks excessive on the next components: (1) the settlement history and trial file of your legal professional; (2) the trial verdicts of the legal professional; and (3) the monetary viability of the lawyer and legislation agency to fund a case by way of trial and attainable appeal.

As an instance of how essential your legal professional is, i’ve taken over auto accident circumstances and been referred many circumstances by different attorneys. Often, I can settle a case for considerably more cash than the earlier legal professional simply because my title and legislation agency are on a settlement demand. Farmers Insurance Company, as one other instance, authorizes its claims adjusters to pay as much as 4 occasions extra for the settlement worth of a case primarily based upon the title and repute of the plaintiff legal professional representing that claimant.

If you need to learn how much your personal automotive accident case could also be price, you’ll be able to take a look at our car accident settlement calculator or call us toll free anytime 24/7 at (800) 777-0028 for a free session with certainly one of our skilled attorneys.

How to guard your self

To make sure that the Colossus private damage calculator doesn’t deprive you of a good automotive accident settlement, you need to do the next:

  1. Find out in case your insurer and claims adjuster is utilizing Colossus on your auto accident declare.
  2. Do not settle for a settlement supply that’s primarily based on Colossus with out speaking to an skilled auto accident legal professional.
  3. Consider submitting a grievance with the Insurance Commissioner in case your insurer both refuses to indicate you the settlement worth vary and/or refuses to accept the excessive finish of the settlement vary.

If you’ve questions concerning the settlement worth that the Colossus private damage calculator has decided on your automotive accident case and wish to communicate with an skilled legal professional, call toll free anytime 24/7 at (800) 777-0028 for a free session with certainly one of our attorneys. You may get assist from an skilled legal professional by emailing [email protected] or you should use the chat characteristic on our web site.

(Sources: Consumer Federation of America, “The ‘Good Hands’ Company or a Leader in Anti-Consumer Practices? Excessive Prices and Poor Claims Practices at the Allstate Corporation,” July 18, 2007, at 21; EnterpriseWeek, “In Tough Hands at Allstate,” May 1, 2006; DIFS, Market Conduct Examination Number 2013C-0059, Targeted Market Conduct Examination Report of Allstate Property and Casualty Insurance Company, June 20, 2014 (pages 1 and eight of the report))

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