The Colossus private damage calculator is a pc claims software program program that many automobile insurance coverage corporations use to generate a variety of what a settlement worth is for an damage based mostly on numerous elements and placement. The premise behind claims evaluation software program is that settlement values might be frequently pushed decrease over time by calculating a median of what a specific damage is price, after which providing much less.
Whereas 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 corporations and has itself been the premise of a number of unhealthy religion lawsuits and state lawyer common settlements.
Fairly than being one in all many elements for claims adjusters and auto insurance coverage corporations to think about in figuring out the settlement worth of a automotive accident sufferer’s accidents, generally it finally ends up being the one issue that’s utilized by auto insurance coverage corporations. 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 beneath fireplace and even be financially penalized for doing so.
Most auto insurance coverage corporations strictly prohibit their claims adjusters from settling a declare for any quantity over the settlement vary calculated by the Colossus pc software program program. I’ve many claims adjuster buddies from being on this enterprise for nearly 30 years, and most inform me that even when they needed to, adjusters nonetheless wouldn’t have the authority to settle. Adjusters complain to me that they’ve been relegated to gathering and inputting data into the pc and conveying the pc’s non-negotiable settlement valuations, simply as insurance coverage protection legal professionals prefer to complain to me that they only “carry water” however adjusters hardly ever take heed to them anymore.
That 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 corporations, it’s also topic to utterly mis-evaluate a declare based mostly on the data {that a} claims adjuster inputs into the claims evaluation software program.
What’s the Colossus private damage calculator?
The Colossus private damage calculator is a claims dealing with pc 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 enhance revenue margins.
The aim of the software program is to not decide the honest settlement worth for a automotive accident sufferer’s accidents and ache and struggling compensation declare.
The aim is as an alternative to methodically drive down auto accident settlement quantities to artificially low ranges so the insurance coverage corporations can save increasingly cash over time, no matter whether or not they’re settling legit accident claims.
What’s the objective of the Colossus private damage calculator?
The aim 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 enhance earnings.
In truth, gross sales literature revealed by the producer of the Colossus private damage calculator boasted that “‘this system will instantly scale back the scale of bodily damage claims by as much as 20 p.c,’” in keeping with the Client Federal of America.
For Allstate, that proved to be the case, in keeping with BusinessWeek. Over a ten-year interval, “the sum of money [Allstate] paid out per premium greenback in automotive accident damage instances declined from about 63 cents to 47 cents,” which is roughly a 25% drop.
How does the Colossus private damage calculator work?
Insurance coverage adjusters feed numerous 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 data 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 ten,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 based mostly on factors assigned to the worth drivers related to every of the sufferer’s accidents. Nevertheless, every insurance coverage firm is free to regulate (manipulate) the pc claims evaluation program with its personal worth drivers which might increase 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. As well as, claims adjusters are regularly required by auto insurance coverage corporations to withhold, modify and/or decrease the settlement supply based mostly on the inputs entered into the Colossus private damage calculator, which has led to unhealthy religion insurance coverage lawsuits in opposition to a number of auto insurance coverage corporations. Claims adjusters are additionally not allowed to settle a declare for greater than what the Colossus claims evaluation pc 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 synthetic and infrequently arbitrary settlement vary that fails to take many necessary elements under consideration.
As well as, auto insurance coverage corporations regularly 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
Allstate received into important nationwide bother for its abusive use of the Colossus private damage calculator to power unsuspecting automotive accident victims into accepting low-ball, undervalued settlement affords on their ache and struggling compensation claims.
Consequently, Allstate needed to enter right into a “Multi-State Market Conduct Regulatory Settlement” with the Insurance coverage 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 mostly solely on the worth advisable by the Colossus software program program.”
- Now not reward or “present incentives” to its insurance coverage claims adjusters for settling automotive accident claims for the quantities specified by the Colossus pc 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 many instruments that our declare personnel could use in evaluating your declare is a pc program often called Colossus, licensed by Pc Sciences Company. The Colossus private damage calculator makes use of a broad vary of details about your damage, therapy, and prognosis to find out the severity of your damage. Based mostly on this data, Colossus makes a suggestion as to the worth of your damage. The Colossus suggestion is just one issue amongst many who our adjusters think about in reaching a choice as to the general analysis of the declare.”
Allstate refuses to provide settlement worth vary
Although Michigan’s Insurance coverage Commissioner has advisable 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 Market Conduct Examination of Allstate Property and Casualty Insurance coverage Firm, Michigan’s Insurance coverage Commissioner famous that Allstate “doesn’t present a replica of the Colossus evaluations to claimants.”
After acknowledging that Colossus’s producer said on its web site that “Colossus evaluations are offered by most insurance coverage corporations,” the Insurance coverage Commissioner advisable that Allstate “comply with this apply.”
Allstate refused: “We’re not required to supply Colossus evaluations.”
It’s believed that the Insurance coverage Commissioner has taken no subsequent motion to implement its suggestion.
How your lawyer impacts the Colossus private damage calculator
Your alternative of a automotive accident lawyer that can assist you after a automotive accident could have an infinite impression your case’s settlement worth as decided by the Colossus private damage calculator software program.
Circumstances accept more cash and sooner when a automotive accident sufferer’s lawyer ranks excessive on the next elements: (1) the settlement historical past and trial file of your lawyer; (2) the trial verdicts of the lawyer; and (3) the monetary viability of the lawyer and legislation agency to fund a case via trial and attainable enchantment.
For instance of how necessary your lawyer is, I’ve taken over auto accident instances and been referred many instances by different legal professionals. Typically, I can settle a case for considerably more cash than the earlier lawyer simply because my title and legislation agency are on a settlement demand. Farmers Insurance coverage Firm, as one other instance, authorizes its claims adjusters to pay as much as 4 instances extra for the settlement worth of a case based mostly upon the title and status of the plaintiff lawyer representing that claimant.
If you wish to learn the way a lot your personal automotive accident case could also be price, you’ll be able to try our automotive accident settlement calculator or name us toll free anytime 24/7 at (248) 353-7575 for a free session with one in all our skilled attorneys.
shield your self
To make sure that the Colossus private damage calculator doesn’t deprive you of a good automotive accident settlement, you must do the next:
- Discover out in case your insurer and claims adjuster is utilizing Colossus on your auto accident declare.
- Don’t settle for a settlement supply that’s based mostly on Colossus with out speaking to an skilled auto accident lawyer.
- Contemplate submitting a criticism with the Insurance coverage 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.
Injured in a automotive accident? Name Michigan Auto Regulation now!
In the event you have been injured in a automotive accident and have questions on how insurance coverage corporations use their Colossus private damage calculator software program, name Michigan Auto Regulation now (248) 353-7575 for a free session with one in all our skilled automotive accident legal professionals. There isn’t a value or obligation. You can even go to our contact web page or use the chat function on our web site.
Michigan Auto Regulation is Michigan’s largest and most profitable legislation agency that specializes completely in serving to individuals who have been injured in auto accidents.
Our secret? Our attorneys intentionally deal with fewer instances than different private damage legislation companies. This enables us to focus extra time and a spotlight on our instances.
In contrast to different legislation companies, our attorneys are by no means too busy to promptly return telephone calls and reply questions.
We now have greater than 2,000 5-Star critiques that replicate this care and a spotlight to element.
Extra importantly, this client-focused strategy results in higher and sooner settlements for our purchasers. Michigan Auto Regulation has recovered extra million-dollar settlements and trial verdicts for motorized vehicle accidents than every other lawyer or legislation agency in Michigan. We’ve additionally recovered the very best ever reported truck accident and automotive accident settlement within the state.
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(Sources: Client Federation of America, “The ‘Good Arms’ Firm or a Chief in Anti-Client Practices? Extreme Costs and Poor Claims Practices on the Allstate Company,” July 18, 2007, at 21; BusinessWeek, “In Robust Arms at Allstate,” Might 1, 2006; DIFS, Market Conduct Examination Quantity 2013C-0059, Focused Market Conduct Examination Report of Allstate Property and Casualty Insurance coverage Firm, June 20, 2014 (pages 1 and eight of the report))
