Once upon time, insurance companies used a fairly simple calculation to come up with a settlement offer. The genesis of technology, including a computer program known as Colossus, changed the way cases are valued. A personal injury attorney in Decatur can talk more about the changes.
Then and Now
Previously, when insurance adjusters wanted to come up with a reasonable settlement offer in a soft tissue injury case, they would add up medical expenses, multiply the total by three and then add in any income loss. So, for example, a common soft tissue case with medical bills totaling $3,300 with no income loss would have resulted in a settlement offer of about $10,000. Keep in mind, this method was used most often in soft tissue injury cases, but at times, other formulas were used too. Colossus, for the most part, killed the above-mentioned method. Instead, a personal injury lawyer in Decatur can tell you insurance adjusters claim they don’t use any method and instead look at each claim on an individual basis. Some say that is simply not true.
A Personal Injury Attorney in Decatur on Colossus
Many times, insurers have the computer program review the case, and the medical expenses end up getting slashed, oftentimes by up to a third of the amount. Therefore, if you use the above example again, the $3,300 in medical expenses would be decreased to $2,000. As a personal injury attorney in Decatur can tell you, insurance companies will never own up to the calculation method, but history shows it is figured out by multiplying by two. So, in the example, the offer would end up being about $4,000 – $6,000 less than it likely would have been a few years ago. Obviously, these factors make it more difficult to settle a case. With a settlement offer like that, there is little money left for the victim once attorney’s fees and costs are subtracted from the total. What this means is that more cases that should be easily resolved end up going to court. These situations are unfair because personal injury lawyers may opt not to move forward with cases because they find them not economically feasible.
Contact a Personal Injury Lawyer in Decatur for Assistance
The advent of computer programs has dramatically changed the way insurance companies come up with settlement offers. If you were injured in an accident and have questions, contact a personal injury attorney in Decatur at McCarthy Rowden & Baker at 800-373-6050.