What is Colossus and How Is It Used After an Accident?

Colossus is a software program used by many insurance companies to evaluate the potential value of an accident claim. Developed around 30 years ago, Colossus is employed by major insurers across the United States. Despite its widespread use, details about how Colossus operates are not readily shared by the companies that create the program or use it.

It’s important to note that Colossus does not determine the value of your claim. Instead, insurance companies use it to estimate the amount they believe your case should settle for or what a jury might award. After the adjusters feed the appropriate data about your case into the computer, they’ll make their initial offers and subsequent offers based on the results of the Colossus analysis. However, other factors may also influence the final offer.

At Larson Law Injury & Accident Lawyers, our car accident lawyers do not rely on Colossus software. We base our evaluation of your claim on our extensive experience and insights into what a jury might award. We investigate how your accident happened by using investigators and other professionals, and by conducting extensive discovery of everyone who has knowledge of the accident and your injuries. We also review your injuries, the treatment you’ll need, the cost of your care, and all the ways your injuries are affecting your life with your physicians or by consulting with our own network of doctors. Additionally, we review all your financial losses including the income you lose because you can’t do your job.

Once our investigation is complete, we normally send a demand letter to the insurance company for the responsible driver explaining how much we think your claim is worth and what settlement is acceptable. The demand is designed to provide information that we know will include the information Colossus wants to see. The insurance company will then give us their offer (usually based on their Colossus software analysis or similar software analysis). There are usually some counteroffers by each side until the case either settles or your case is scheduled for a jury trial. You have the right to decide whether an insurance settlement offer is acceptable.

How does Colossus evaluate your car, truck, or any other type of vehicle accident claim?

Colossus and similar programs analyze two types of data:

1. Claim data:

• • Medical data: This includes your medical diagnosis (what injuries you have). The software will assign points to your injuries based on the type of injury you have, the severity of the issue, possible complications, and many other factors.
    • Colossus will review whether your injury is the type that can be verified by tests and information that is easy to verify such as broken bones that can be verified by X-rays.
    • Colossus will review the symptoms you have. Generally, the more symptoms you have, the higher the value Colossus will assign to your claim.
    • Other medical factors include when you went to the hospital, did you have any surgeries, how long you were in the hospital, the type of specialists who treated you and will continue to treat you, the types of therapy you need (such as physical therapy, occupational therapy, and vocational therapy), and many other factors. The more objective (verifiable your injuries), the more your claim will be worth according to Colossus. Colossus is programmed to review the full range of available medical data and to assign a value to each relevant bit of medical information.
    • Colossus may place a low value on some types of medical care if the care is not recommended by a physician.
    • Colossus and similar software will reduce your claim’s value if there are gaps in treatment or if you fail to treat for example just deciding to live with the pain and not see a provider
    • A major factor that Colossus considers is whether you have a permanent injury or an injury that can heal with proper treatment. The severity of your injury affects not only your medical score but your lost wage score. Colossus will review the type of work you do, the tasks involved in your job, and how your injuries affect your ability to perform each type of task.
  • Non-medical data: This includes your work history, your job earnings, and how much money you are losing because you can’t work (and may never be able to work again). Non-medical data also includes any other financial damages. Non-medical data can also include your relationship status, whether you have children, and many other factors.

1. Non-claim data:

• • Your lawyer: Colossus will review your lawyer’s record of courtroom verdicts and any settlements. Generally, each time your lawyer settles a case with an insurance company, the amount of the settlement and the details around the case/injuries are entered into Colossus. Colossus will assign a score based on your lawyer’s success in the courtroom and success in negotiating settlements. If you don’t have a lawyer, Colossus will likely reduce the value of your claim significantly.
  • The jurisdiction where your claim/lawsuit is filed: Colossus will examine how similar liability claims and personal injury claims have been settled by other lawyers and other insurance companies – along with the results of similar verdicts – in the general location (such as Minot, Fargo, or Bismarck) where you live.

Once the data is entered, Colossus uses its algorithms to determine the cost of your medical care, your financial damages, your non-economic damages which include pain and suffering, loss of consortium, loss of bodily function, and other factors. The end result of this analysis is the amount the insurance carrier will offer to settle your case.

There are concerns that some insurance companies try to “game” the software by assigning lower scores than your claim deserves, deleting large verdicts, and deleting claims that settle for the insurance policy limits.

Insurance companies have the right to use Colossus. They do not have the right to negotiate in bad faith by essentially telling Colossus to devalue your claim.

Contact our experienced lawyers today

Larson Law Injury & Accident Lawyers have been fighting for vehicle accident victims since 1979. We have the experience and resources to show how your accident happened and to determine the full value of your claim. Our car accident lawyers demand compensation for all your financial damages and your personal damages. While we settle many claims, we’re always ready to try your case in court if an insurance company offer, based on Colossus software or any other evaluation method, is too low. Call our offices or use our contact form to schedule a free consultation in Fargo, Minot, or Bismarck.