Do I Need a Lawyer or Can AI Help Me Settle My Car Accident Case?

Motor vehicle accidents are one of the leading causes of personal injuries and wrongful death in the United States. According to national statistics, approximately 2.6 million people are injured and nearly 40,000 people are killed in traffic accidents each year in the United States. With so many people dealing with the aftermath of car accidents, it is understandable that some might wonder whether artificial intelligence (AI) tools could help them navigate the settlement process without hiring a lawyer. Although AI calculators and chatbots that estimate case values have appeared online, and some may even receive recognition as being accurate or good resources, relying on these tools to actually settle your case can be a serious mistake.

Yes, the appeal of AI for car accident claims is obvious. These tools promise quick answers about what your case might be worth without the cost of hiring an attorney. And when you are hurt and facing accumulating medical bills while also having higher lost wages, you may think a quick payday is the answer by using AI.

However, car accident settlements are far more complex than any computer algorithm can properly analyze. Indeed, AI systems lack the ability to understand the full context of your unique situation, cannot negotiate with insurance adjusters, and may present inaccurate information that could undermine your claim – or even get your case dismissed and you sanctioned. Therefore, understanding why human legal expertise remains essential will help you make smarter decisions about your car accident case.

Generative AI is Good, But AI Cannot Accurately Value Your Case

One of the biggest problems with using AI for car accident settlements is the issue of inaccurate information. AI systems are known to “hallucinate,” meaning they confidently generate responses that are completely fabricated and made up – the cases just do not exist.

For example, an AI tool might cite a settlement amount, reference a legal precedent, or suggest a case value based on data that does not actually exist. The case may appear to be real and even have convincing citations, dates, courts, or judge names. But these cases just do not exist, and could cause you to rely on the wrong information for your case.

The real danger is that attorneys have been sanctioned by courts for relying on AI that generated fake case citations, and the same risks apply when injury victims try to use these tools. Indeed, self-represented litigants have also been sanctioned for the misuse of AI too. If you base your settlement expectations on AI-generated misinformation, you could accept far less than your case is actually worth or make strategic decisions based on fictional legal principles.

AI Limitation: Personal Injury Cases Are All Unique and Fact-Dependent

Perhaps the most fundamental problem with AI case valuation is that the same injury can be worth dramatically different amounts for different people. Suppose two people suffer identical broken arms in car accidents. One person is a 25-year-old per diem contractor who recovers fully in eight weeks. The other is a 55-year-old surgeon whose injury affects their ability to perform surgeries and results in permanent limitations. The settlement value for these identical injuries could differ by hundreds of thousands of dollars.

What’s more, the going rate of the venue where the case is filed could also drastically affect the outcome. Not only is this a state-by-state difference, but even without states or regions. For instance in New York, the compensation for a broken arm to a 25 year-old in a case venued in upstate Franklin County will be drastically different from the compensation that person would receive in downstate Bronx County – a much friendly plaintiff’s venue. In fact, the same case filed in Greene County could have a drastically different outcome than that filed in the county immediately below, Ulster County. Even just the judge assigned to the case could impact the value (i.e., a plaintiff’s friendly judge versus a more critical, defense-oriented judge).

Additionally, even more complicated is that the value of a case can also depend on risk, which includes liability as well as risk of recovering completely. These are often issues that require an expert witness to address, such as medical, vocational, economic, life care planners, and engineer experts. Thus, while AI systems analyze patterns in historical data, they cannot understand how your specific job, lifestyle, age, pre-existing conditions, and future plans should affect your compensation – especially how that can vary in significance by a county-to-county basis. Said differently, formula that works for one person could significantly undervalue or overvalue another person’s claim.

Car Accident Settlements Consider Human Factors That AI Cannot Accurately Measure

Car accident settlements involve many components that require human understanding, too. There are factors that deeply influence case value but cannot be easily quantified by a computer. Some of these factors even require sworn testimony to establish in a court, include the following:

  • Pain and suffering that varies based on each person’s unique experience
  • Emotional distress and mental health impacts like anxiety or PTSD
  • Loss of enjoyment of life and inability to participate in beloved activities
  • Impact on family relationships and daily routines
  • Future earning capacity and career limitations
  • Long-term medical needs that may not be immediately apparent
  • Loss of consortium, which includes familial society and relations but also between spouses, including intercourse and the ability to have children – a very human-only trait
  • Punitive damages for wanton and egregious conduct that offends the notions of society, and
  • Other damages that a car accident lawyer could help you value, but GenAI might not be able to do it accurately – or at all.

Only Lawyers Can Verify Legal Accuracy

Even when AI cites legal cases or principles, only a licensed attorney can verify whether that information is accurate and applicable to your situation due to the issue of AI hallucinations of legal authorities like cases and statutes. Issues such as comparative negligence rules, damage caps, statutes of limitations, and insurance regulations all differ depending on where your accident occurred and the unique facts of your case, which sometimes are difficult even for lawyers and trial judges – hence why cases get appealed to a full panel of judges.

Thus, if lawyers and trial judges cannot always get it right, AI systems often cannot distinguish between these crucial legal differences. More importantly, AI cannot tell you whether the cases it references are real, whether they have been overturned, or whether they actually support the proposition being discussed. Only a trained attorney can conduct proper legal research and apply the correct legal standards to your case.

Even if GenAI Writes a Strong Settlement Demand for You, Negotiation Requires Human Skills and a Real Person to Sign the Papers

Settling a car accident case is not just about knowing what the case is worth. It involves skilled negotiation with insurance adjusters who are trained to minimize payouts. A good attorney brings years of experience reading people, understanding when to push harder, and knowing when a case should proceed to litigation. They can leverage their reputation, their trial experience, and their knowledge of local court tendencies to achieve better outcomes.

But AI cannot pick up the phone and negotiate with an adjuster – which is often the first step to building rapport or setting a good impression in a negotiation, or the last step to seal the deal. Yet, AI cannot read between the lines of a settlement offer or recognize when an insurance company is bluffing or when an adjuster is backpaddling versus setting a trap. These human skills are essential to maximizing your recovery which AI simply cannot do for you to settle a car accident claim.

Although AI May Help Get Your Car Accident Case Settlement Started, a Real Lawyer is Needed to Maximize Your Potential Recovery and Protect Your Rights

There are many benefits to AI and the law. However, simply put, AI cannot settle your car accident case, and attempting to rely on these tools could cost you significantly. The technology cannot account for your unique circumstances, may present inaccurate information, and lacks the legal knowledge and negotiation skills required to maximize your settlement. While AI might provide a very rough starting point for thinking about your case, it is no substitute for experienced legal representation.

Since personal injury cases are about your health, which is irreplaceable, victims and their families need to rely on human lawyers and not digital chatbots. Car accident lawyers typically take cases on a contingency basis, meaning there is no upfront or out-of-pocket expense to victims and their families. If you have been injured in a car accident, the smartest decision you can make is to consult with a qualified personal injury attorney who can evaluate your specific situation, verify all legal claims, and fight for the full compensation you deserve. To learn more and find one, watch some videos on our website or read more blog posts and articles online to see why a car accident lawyer can help you with your case settlement.