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Allstate confesses to using computer program to reduce settlements for auto accident victims in Michigan

Insurance company admits use of ‘Colossus’ software to ‘low-ball’ auto accident settlements and stonewall car accident attorneys

Continuing with my “Allstate week” (I’ll stop writing about them when Allstate stops giving me so much to write about), this is part of a series I’ll be posting about the auto insurance company’s efforts to unfairly use a controversial computer program called Colossus. Colossus is designed to low-ball settlement awards for injured car accident victims in Michigan and around the country.

The software is used by many large auto insurance companies to “calculate” the settlement value of car accident injury claims. The system involves the insurance adjuster feeding data into the program, which then gives a settlement range, and the goal is to methodically drive down auto accident settlements.

Our car accident attorneys have watched innocent accident victims treated terribly by this giant insurer for almost 20 years. Hopefully, that’s now going to change. Allstate Insurance Company was recently held accountable for its unfair use of the “Colossus” computer program to punish accident victims, including using the computer program as part of its 3 Ds strategy: Delay, Deny, Defend.

Allstate promised insurance commissioners across the country — including Michigan’s Insurance Commissioner, Ken Ross — that it would change how it uses Colossus in its auto accident claims handling process.

In particular, Allstate promised the following:

o Allstate will notify Michigan auto accident victims and their lawyers when Colossus claims software is being used to adjust their personal injury claims.

o Allstate will no longer reward its insurance claims adjusters for settling car accident claims for the amounts specified by the Colossus computer program.

o Allstate will pay $10 million to train insurance commissioner personnel to monitor and evaluate Allstate’s continued use of Colossus.

Next week, I’ll talk more about what this development means for personal injury victims who are dealing with Allstate Insurance Company, and give tips on how auto accident attorneys can help their clients.

Steve Gursten is recognized as one of the nation’s top attorneys handling serious car accident and truck accident lawsuits, and No-Fault litigation. He routinely writes about insurance company abuse and the No-Fault laws in Michigan, and is available for comment.

Related information:

No-Fault car accident settlements in Michigan

Car accident attorney videos: No-Fault benefits and advice

Allstate won’t be targeting Michigan doctors who target auto accident victims

Michigan Auto Law is the largest law firm exclusively handling car accident, truck accident and motorcycle accident cases throughout the entire state. We have offices in Farmington Hills, Detroit, Ann Arbor, Grand Rapids and Sterling Heights to better serve you. Call (800) 777-0028 for a free consultation with one of our car accident attorneys.

This entry was tagged Tags: Allstate, Allstate Insurance Company, auto accident settlement, Colossus, Michigan car accident, Michigan car accident attorneys
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