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Mar 04

Insurance Claim Process: How Much Can You Get in a Car Accident Claim?

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When an individual suffers from a car accident, he may file an insurance claim with his insurance provider or third-party’s insurance company for a fair settlement of compensation for damages caused to him due to his negligence or other party’s fault. For maximum coverage and compensation, policy holders need to go through a detailed process. The insurance company will inquire about the incident or you may hire a lawyer or an official for an effective calculation of the number of damages caused due to a car accident.


Decide the Type of Claim

A policy holder may file two types of the claim depending upon the circumstances. He may proceed with:

  • First-party claim

The foremost step involves which claim you want to file either first-party claim or third-party claim. In the first-party claim, the person holding policy will file a claim with his own insurance company. For example, a car accident occurs due to your negligence, then you quickly file a car accident insurance claim with your insurance firm, and ask them to compensate you for any damage caused.

  • Third-party claim

Third-party insurance claims will be filed in a case if damages are caused due to another person’s negligence. Then you will file a claim with the at-fault party’s insurance provider. For example, if your vehicle is hit by any other person and you will ask them to cover your medical expenses or any repair costs.


When to File a Claim and What to Provide?

You should file for a claim as soon as possible, for example, if you have faced a car accident. Try to file a claim to your own insurance provider or the third-party’s insurance provider within 24 hours of the incident, and report to them about the whole incident at the spot.


Insurance Claim Process: How Much Can You Get in a Car Accident Claim?

You have to provide details of the accident and the list of expenses and injuries caused to you. So, they may start cross-checking and investigating the claim. For example, you are hit by a car and you are filing a claim you have to provide the followings:

  • Medical reports of serious injuries
  • Information about the accident’s spot
  • Witness (if any)
  • Images you captured (if any)
  • A detailed account of the accident.

After inspection, if you are right in your claim, the insurance company will issue a settlement cheque. If you think the amount is inadequate, then you can appeal to the insurance company to further investigate.


What You Will Receive From an Insurance Claim?

It will be calculated by the total sum of all your injuries and the cost of repairs. While calculating, the insurance company will take into account some important values. According to the professionals at, an official attorney can be helpful in calculating such amounts and providing a free consultation. They may help in the steady recovery of your damages. They take into account the initial purchase price of your vehicle, the condition at the time of the accident, its book value and the mileage as well. While formulating, they will not calculate an average amount of the damage, but they will individually calculate the replacement cost of each part that needs repair.

Assigning Value to Pain and Injury

Pain and amount of injury to calculate is a bit hectic to do. Because no one can assign any monetary value to someone’s pain and injury, but how much loss that pain causes can be calculated. We can take an example if a car accident is faced by a young athlete and he loses his limb now he will face a higher amount of financial, emotional, and psychological pain than a retired elderly woman who is not actively engaged in any kind of job or work. So, the amount they receive will vary in such cases. The insurance company pays you for:    

  • Medical expense       
  • Wage loss        
  • Physical and pain      
  • Permanent disability

A Claim Can Be Denied or Approved

Your claim can be denied or approved due to many reasons.  For example, in case of a car accident, you did not file for the claim within 24 hours or you may fail in providing the proof of your injuries or independent medical certificate. Further, how to proceed will vary according to the company’s policy.

Methods for Coverage

Usually, insurance companies use some formulas for fair calculation of the claim. 

  • Multiplier Method is normally used to trace the amount of pain or emotional damage that occurs. It varies from person to person and adding them all gives special damages. That total will be then multiplied by numbers between 1.5 to 5. The number will be called multiplier and it will depend upon the degree of seriousness of physical and emotional pain. The more the suffering, the more the multiplier value will be.
  • Per Diem Method is another method used by insurance companies for calculation of special damage i.e. pain and hurt damages. This formula will calculate the amount you will receive from claim on daily or weekly bases.

Calculating the number of tangible damages, like the damage to property or any asset, can be easy because you can assign an amount to them via survey from the market or with the assistance of analysts. But assigning the amount to pains and suffering can be a challenging task. You need the proper help of lawyers or firms for fair presentation because they face such scenarios on a daily basis that can provide you near perfect value for your claim.


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