How Insurance Companies Calculate Car Accident Settlements

When it comes to calculating settlements, the insurance industry does not have a precise mathematical formula about how insurance companies calculate car accident settlements because each case is different. Instead, they use a variety of factors to determine the amount of compensation they are willing to pay on a certain car accident claim. These factors include the nature of the property damage in a car accident, whether the claim involves a personal injury and the policy limits of the applicable insurance policies.

UPDATED: Sep 30, 2022Fact Checked

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

UPDATED: Sep 30, 2022

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We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

UPDATED: Sep 30, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

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Find the right lawyer for your legal issue.

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