Beware Low-Ball Automated Insurance Payouts, Says Consumer Group

Vehicle stuck in flood water
Vehicle stuck in flood water

The Consumer Federation of America is warning consumers to be careful if a payout from an auto insurance company seems way too low.

Someinsurers are "fine tuning" their computers so that automated claim systems result in "unfairly low" claims payouts after an accident, the consumer group says. In particular, officials are concered about a program called "Colossus" touted to insurers as a powerful cost-savings tool.