How Do Car Insurance Companies Calculate Claim Settlements?

An insurance company takes in several factors related to the accident to calculate the amount of money that an individual receives for a settlement.

Medical expenses will be included in a car insurance settlement or claim. Medical expenses include medical bills, emergency room fees, doctor visits, hospitalization charges, x-rays, MRI and CAT scans, other medical tests, medication and cost of travel to and from doctor and hospital visits. If you are unsure about a medical bill, include it, and let the insurance company determine if it is an acceptable expense.

Loss of income will be calculated into a car insurance settlement or claim. If the individual had to miss work because of the injury due to the wreck they can be compensated. Also, time that was missed going to and from doctor visits is included as well.

Permanent disfigurement or disability can be determined as a loss of income. If the individual was disfigured by the accident and their income relies on their appearance, complete loss of income can be awarded. If the accident leaves the individual with a disability that affects their career, the amount of income reduced can be awarded.

The individual's property damage will be included in the auto insurance claim. If the car had damage that could be fixed, the insurance company will cover the cost of the repair bill. If the estimated value of the vehicle was reduced due to the damage from the accident, the individual can be entitled to the difference. If the vehicle was damaged beyond repair, totaled, the insurance will replace the car up to its value.

After the insurance company calculates a settlement total, an additional factor will be added to the equation for the final figure amount. This is called the degree of fault. This can range from 0% (no fault) to 100% (complete fault) of the accident. For example, if the individual was 40% at fault and the expense total due to the accident equaled $50,000, the individual would receive $30,000 in the settlement.

If you would like to more information on how a insurance company calculates a claim visit the following sites:

www.hurt911.org