How Insurance Companies Use Software to Devalue Claims
How Insurance Companies Use Software to Devalue Claims
Insurance companies don’t play fair when evaluating car accident claims. Many injury victims assume their settlement offer is based on the actual damages they suffered—but in reality, insurers use computer programs like Colossus to lowball claims and minimize payouts.
Some insurance companies only rely on these programs before you file a lawsuit. In our experience, you can see significantly higher settlement offers when you hire a trial attorney to handle your case. Insurance companies know that trial attorneys are not afraid to take cases to court, and they are more likely to offer a fair settlement when they know a trial attorney is involved. Their entire attitude changes after a lawsuit is filed. Unfortunely, some lawfirms accenp their lowball offers and do not file lawsuits.
How Insurance Software Like Colossus Works
Colossus is a widely used claims evaluation software that insurance companies rely on to determine settlement values. Rather than letting human adjusters evaluate claims individually, Colossus inputs data and generates a number—one that’s often much lower than what injury victims truly deserve. Insurance companies use Colossus to reduce payouts and increase profits. However, these computer programs are not designed to evaluate the full extent of the injuries and damages suffered by the victim. By hiring a trial attornet, you can ensure that the insurance company is held accountable for the full extent of the damages in court.
What Factors Does Colossus Consider?
Colossus and similar programs use pre-programmed algorithms to assess claims based on:
- Medical records (diagnoses, treatment type, duration)
- Injury severity (e.g., soft tissue vs. fractures)
- Liability determination (who is at fault)
- Geographic location (historical settlement data in your area)
- Pre-existing conditions (used to downplay new injuries)
The problem? Colossus ignores the human element—it doesn’t account for pain and suffering, emotional trauma, or the real-life impact of injuries. And insurance companies program these systems to reduce payouts by assigning lower values to certain treatments.
How Insurance Companies Use Software to Devalue Claims
Insurance companies train adjusters on how to manipulate Colossus results to offer the lowest possible settlement. Here’s how they do it:
1. Downplaying Non-Economic Damages
Colossus doesn’t fairly evaluate pain and suffering. If you have ongoing back pain that affects your daily life, the software may assign it a generic value rather than considering how it limits your ability to work, care for your family, or enjoy life.
2. Limiting Medical Treatment Recognition
The system favors some treatments over others. If you see a chiropractor or physical therapist for pain management, Colossus assigns it a lower value than a hospital visit—even if it’s the best treatment for you.
3. Using Previous Medical History Against You
If you had any past injuries or conditions, Colossus may reduce your payout by arguing that your injuries weren’t entirely caused by the accident.
4. Comparing Your Claim to “Standard” Settlements
Colossus calculates payouts based on historical data from past settlements—but those settlements were also undervalued. This means your claim is compared to lowball settlements instead of being assessed based on your actual damages.
Why Hiring a Trial Attorney Matters
Insurance companies fear trial attorneys because they know these lawyers aren’t afraid to take cases to court—and juries tend to award much higher settlements than Colossus would suggest.
Here’s why hiring a trial attorney increases your settlement:
1. Trial Attorneys Challenge Lowball Valuations
A skilled attorney will gather medical evidence, expert testimony, and witness statements to prove your injuries are worth more than what Colossus suggests.
2. Insurance Companies Pay More to Avoid Trial
Most injury cases settle before trial. Why? Because insurance companies know that juries often reject software-generated settlement offers and award much higher amounts. When an insurance company realizes a trial attorney is handling your case, they are far more likely to offer a fair settlement.
3. Attorneys Expose Insurance Bad Faith Tactics
If an insurance company refuses to offer a reasonable settlement, an attorney can *ursue a bad faith claim under Georgia law (O.C.G.A. § 33-4-7), which allows victims to recover additional damages if the insurer acts unfairly.
Real-World Example: How a Trial Attorney Increased a Settlement
Let’s say John, a Georgia resident, suffered a herniated disc in a car accident. His medical bills totaled $80,000, and he had ongoing pain that limited his ability to work.
- The insurance company ran his claim through Colossus, which valued his case at only $50,000.
- John hired a trial attorney, who gathered medical records, consulted with experts, and prepared for trial.
- Seeing the case moving toward a jury, the insurer increased the offer to $250,000—five times what Colossus had suggested.
Without an attorney, John would have walked away with a fraction of what he truly deserved.
Conclusion: Don’t Let Insurance Software Decide Your Future
Insurance companies use Colossus and other software to lowball claims and limit settlements. These programs don’t see your pain, your financial struggles, or how the accident has changed your life.
The best way to counteract insurance company tactics is to hire a trial attorney who is ready to fight for maximum compensation. When insurance companies know a lawyer is prepared to take a case to trial, they pay more—because they know juries don’t care about software-generated valuations. Juries care about the actual fair value of the injuries and damages suffered by the victim.
If you’ve been injured in a car accident, don’t accept the first settlement offer. Speak with an experienced trial attorney who can demand the full compensation you deserve.
Sources
- [Georgia Code § 33-4-7] (Bad Faith Insurance Practices)