As Insurance Companies Use AI to Broker Settlements, Should You Be Worried about an Unfair Payout?

The personal injury industry is rife with unscrupulous insurance firms notorious for lowballing victims of an accident and offering settlements below what they’re entitled to.

Now, these firms are increasingly using Artificial Intelligence (AI), which can accumulate and analyze data from millions of past cases to determine a likely payout — with, of course, a slice reserved to maximize the insurance company’s profits.

The problem is that AI is incapable of nuance. Unlike a sympathetic attorney dedicated to fighting for the compensation you deserve, AI is merciless, spitting out figures often well below what the real payout should be.

Artificial Intelligence may be useful for calculating loss of income and medical expenses, which are vital components of compensation, but there’s one thing this technology can’t so easily compute.

How do you put a figure on non-monetary damages such as loss of enjoyment, pain and suffering, and the monumental impact of being in an accident and suffering a life-changing injury or disability?

And yet, that’s exactly what insurance firms are using this technology to do.

At The Clardy Law Firm, we wanted to find out exactly how consumers in the U.S. felt about their chances of securing a fair payout.

Eye-Opening Results Show More Than Half of Respondents Are Missing out on Potentially Substantial Payouts

In a recent Google Survey, we asked 200 respondents in the U.S. if they would consider filing a personal injury claim for an accident that wasn’t their fault.

The results were surprising, with more than half (50.6%) responding that they wouldn’t file a claim.

What’s more concerning, though, is how many people would accept the first offer from an insurance company or settle for less, even if they knew they could be entitled to more.

Our results found that a combined 32.4% would settle for less because they’d prefer to have a quick case (15.6%) or because “something is better than nothing” (16.8%).

When asked directly if they’d be worried about receiving an unfair settlement, 16% wouldn’t even file a claim, while an astonishing 40.6% expressed concern that they’d receive a payout of less than they deserved.

These results highlight concerns over the fairness of personal injury payouts. While, fortunately, many personal injury victims sustain only minor injuries, others suffer years — and perhaps a lifetime — of pain and suffering, emotional distress, and a diminished quality of life.

It’s a very real fact that those who settle early face skyrocketing medical bills. The money that’s supposed to aid them with treatment and living expenses — especially if they’re unable to work — runs out quickly. Those who don’t claim at all face even larger difficulties, and they often can’t file a lawsuit later because the statute of limitations has run out.

But It’s Not All Doom and Gloom

One positive that came out of our survey is that 52.7% of people who would make a claim would hire a personal injury lawyer immediately after being in an accident.

When faced with a stubborn insurance firm unwilling to compromise, a further 45% would hire a lawyer to negotiate on their behalf or take their case to trial to get them the compensation they’re owed.

With insurance companies increasingly arming themselves with AI data, people involved in an accident have two choices: be pressured into accepting an unfair settlement or hire an attorney to fight their case.

The good news is that even when battling an insurance firm determined to make a profit and armed with data, a skilled personal injury lawyer can still get you the payout you deserve.

If you’ve had an accident, our personal injury lawyers in Greenville, SC, are dedicated to getting you the maximum compensation. Our attorneys are skilled negotiators and empathetic to your situation, including the unquantifiable impact your injury may have had on your life. Contact us today for a free case evaluation and find out how much compensation you could receive.