If you are driving along and minding your business and are in an accident caused by someone else, you will be entitled to compensation for your injuries and property damages. Who will provide the compensation depends upon the state and insurance regulations. How much can you expect to get in your auto accident settlement?

Despite what you might have heard, there is no one master formula to calculate car accident settlements. But some insurance companies do use a computer system known as Colossus. The adjuster will enter information and the program will provide a settlement number. As a consumer, you cannot access this computer system, but it helps to understand how the figure is calculated.

The first factor considered is the damage to your vehicle. Possible compensation for damage to your car will be the cost of repairs and replacement parts, unless the cost is worth more than the car is worth. The insurance company could declare the car a total loss, but this does not mean the company will just pay for a new car. It will usually pay you the current value of the vehicle before the accident, including depreciation. This may not give you enough to purchase a new vehicle without you having to pay extra.

Personal injury compensation is more complex. It is based upon your medical bills and any lost wages you may have incurred because of your inability to work.

Next is pain and suffering; it is usually added to the cost of the medical bills and lost earnings. Most insurance companies will use a multiplier to arrive at a compensation number for your pain and suffering. That number could range between 1.5 and 5.