The Formula Used by Insurance Companies to Calculate Auto Accident Settlements

Insurance companies will value your claim based on their projections about how a case would come out if it were to go to trial. When a plaintiff wins a judgment at trial, the judgment will be for a number of damages. Insurance adjustors deal with many different car accidents every day so they become quite efficient at valuing claims.

Do I Have to Accept my Settlement Offer?

You do not have to accept the exact amount of the first offer, in fact, that would be quite foolish.The adjusters are trained to obtain release from victims in exchange for the lowest amount of auto accident insurance settlement money that the victim will let the insurance company get away with.It is also important to realize that most auto insurance companies today use a software system called Colossus.

What is Colossus?

Colossus is a system that enables adjustors to simply input all sorts of data and Colossus will spit out the exact range in which the adjustor is free to negotiate.

This system gives different weight to each type of medical treatment received and it gives different dollar amounts for each exact symptom and injury notated on the medical records. Significant delays and gaps in treatment can signal Colossus to seriously devalue your case.

Also of note is the fact that Colossus gives weight to whether or not an attorney is involved, and the history of that particular attorney.

For that reason, attempting to settle an auto injury claim on your own starts you out at an immediate deficit.

Hiring an Attorney for Your Auto Accident Case

An experienced personal injury attorney can make sure that your case receives the maximum possible value and can then negotiate for a settlement amount towards the top of the possible range of settlement amounts.

Related Content: Auto Accident Insurance Claims Process

This article is offered only for general information and educational purposes. It is not offered as and does not constitute legal advice or legal opinion. You should not act or rely on any information contained in this article without first seeking the advice of an attorney.