Why Quick Settlements Are Now Even Less Likely to Provide the Recovery You Deserve

AI is changing the world in so many ways that it’s hard to keep up. One aspect behind-the-scenes that many people are unaware of is the use of AI to evaluate insurance claims. Insurance companies are always looking for ways to save money, and instead of having experienced human employees review claims, they rely on AI to produce a quick evaluation.

Artificial intelligence software makes extremely fast decisions based on information acquired in often mysterious ways. Sometimes the information comes from a poor source and is incorrect or incomplete. There are also times when decisions are based on completely fictitious information. This is referred to as an AI “hallucination.”

So, if you receive a settlement offer soon after a car accident, truck accident, slip and fall, or other accident, there’s a good chance that offer was prepared with the help of AI—and it is not likely to come anywhere near the true value of your claim. It’s a good idea to consult an attorney before deciding whether to accept a settlement offer. We can’t speak for other lawyers, but at Michael M. Day Law Firm, we offer free case evaluations so you can learn what your claim may be worth in a simple, no-charge, no-obligation consultation. Here’s why that is important in the age of AI.

The Fast Settlement is Tempting When You’re Vulnerable

Although the AI offers are driven by machines, they are based on human psychology. Insurance companies know that right after an accident, victims are disoriented and worried. When they can’t work due to injuries, accident victims worry about medical bills and other bills piling up. The offer of a quick and certain settlement to address immediate concerns is very tempting.

In addition, the offer produced by tech software will arrive with justification that makes it seem like you have no chance of receiving anything better. The offer is usually accompanied by data that makes it appear as though the amount offered is based on objective, unrefutable facts. This can make it appear as though trying to obtain more would only waste your time, and it could result in you losing the chance to accept the “bird in the hand” offer.

But even when you are worried and facing problems that seem to worsen every day, it is important to take a deep breath and understand what is at stake before accepting anything. Once you accept any compensation whatsoever, you give up your right to additional damages. 

Early on, no one knows the full impact of your injuries. You may recover fully with one round of treatment. Or, you may need a series of painful surgeries that keep you out of work for years. Or, still worse, doctors may never be able to help you recover fully, and you may be left with permanent pain or other disabilities. You need a clearer idea of your prognosis before you know what your needs are, and those needs determine the value of your claim.

The Loss Valuation Behind AI Offers is Often Based on Incomplete Data

When an insurance company uses AI to evaluate your claim for injuries caused by an accident, the system bases its decisions on a few medical codes. These codes may not fully cover all the physical and mental effects of your injuries. The data produced by these codes may indicate the average cost of medical treatment for these conditions and possibly how much work time will be missed. But they generally do not take into account factors such as:

• Aggravating effects of symptoms not included in the specific medical codes referenced
• What impact will it have on future career prospects
• The damage to your quality of life during and after the recovery period
• Pain and suffering
• The specific details of your life and the loved one you support

To understand the difference these factors can make, it is helpful to consider an example. If a driver runs a red light and smashes into the side of your car in a T-bone collision, causing multiple fractures to your leg and hip, the AI program may run some numbers based on the cost of treating a couple of the bone fractures and offer you an amount. But the full extent of the injuries is not covered by the medical codes used at this point. The number of surgeries needed and the potential for healing are unknown. You could end up in a situation where you are unable to walk or even stand without extreme pain.

When you present the extent of your condition to a judge or jury who can see the pain you’re in and imagine a life where you are unable to enjoy the activities you did before, then you can recover amounts to provide justice and support for your losses. The difference in amount between what the AI program offers and what you could obtain in court could be hundreds of thousands of dollars. When you talk to a knowledgeable personal injury lawyer and explain the details of your situation, you can get a specific understanding of what’s at stake in your case.

Talk to Michael M. Day Law Firm Before You Accept a Settlement

The decision is always yours to make. It is your life. However, it makes sense to ensure you have the facts needed to make the most intelligent decision in the situation. 

The insurance company will not give you all those facts because they want to make a quick, low offer to save the company time and money. You can get some information from your doctor and more information from an experienced injury attorney, particularly in a smaller personal injury firm that is focused on customer service rather than the big firms that make their money by processing a large volume of claims. If you’d like an evaluation of an offer you received from an insurance company, we invite you to contact the team at Michael M. Day Law Firm for a free consultation. We are dedicated to obtaining the maximum compensation for our clients, and we know how to value claims using the full array of available evidence. For your free case evaluation, call us at 404-480-4284 or contact us online now.