How Will The Insurance Company Calculate My Compensation Amount?


The insurance policy plays a vital role in the fate of an accident. Many car accident victims rely on insurance coverage to pay for their medical bills or other unavoidable expenses. The victim must contact a Philadelphia, PA car accident attorney if they face any difficulties claiming insurance.

Many people might wonder how the insurance company will calculate their compensation after a car accident. Certain factors are considered by the insurance company while finalizing the compensation amount. The damages and injuries are the primary aspects of each accident case. Read this article to determine how the insurance company will calculate your compensation. 

  1. Medical care 

An accident will likely leave the victims with injuries and wounds. Such injuries can only be treated in the hospital or a medical institution rather than on home remedies. Before your compensation amount is finalized, the insurance company may review the medical care expenses related to your recovery. 

2. Loss of income 

Unfortunately, the victim’s ability to continue to work decreases as the severity of the car accident increases. In some car accident cases, the victims faced significant damages, which stopped them from returning to function normally. 

If the injury resulted in a disability, the victims were observed to have completely lost the ability to earn an income. In such cases, the insurance company will check if the victim faced any loss of income. If the victim did, the compensation amount would likely be affected. 

3. Missed activities 

Some car accident cases involved children. Due to the accident, the affected children could not pursue their educational activities as planned or intended. Apart from the children, adults were likely to miss important family or social activities due to the accident. The insurance company will account for such factors before rewarding the compensation to the victims. 

4. Property damages

If the crash or collision in the car accident were uncontrollable, one or more properties would potentially face damage. When a car accident causes property damages, the compensation amount gets affected. The insurance adjuster will add all the injuries from the accident to the compensation. 

Final calculation of compensation: 

Once the insurance adjuster has reviewed all the damages and injuries resulting from the car accident, they will use a “damages formula” to finalize your claim amount. The insurance adjuster will add all the medical expenses related to the injury. 

Once done, the adjuster will multiply the victim’s total expenses between 1.5 to 5 for the damages that cannot be calculated by a particular amount, like emotional pain and suffering. Lastly, the adjuster will also consider the lost wages faced by the victim and finalize the compensation amount. 



Please enter your comment!
Please enter your name here