How Is Accident Compensation Calculated?

February 19, 2021

Have you been involved in an accident and are wondering how your compensation will be calculated? We know how difficult it can be to struggle with your injuries and the impact it can have on your life. We also recognise that the compensation industry can be scary and confusing, especially for people who have fortunately not needed to make a claim yet. But if you have suffered, you have every right to chase the compensation you deserve, and you have a right to know how much you could claim.

We believe that it is part of our responsibility and duty to provide advice and support for accident compensation. Keep reading to see some of the factors that may influence how your accident compensation is calculated.

How Accident Compensation Is Calculated

There are so many factors that come into play when calculating how much compensation should be awarded following an accident. Typically, the claim should consider injuries, how the accident has affected your life, your mental capacity, and financial losses. Below are a few of the different factors that shape a compensation calculation.

Physical Injuries

One of the most significant factors affecting an accident compensation calculation is the physical injuries you have endured. A medical professional should complete a thorough assessment of your injuries, including injuries that were perhaps not immediately noticeable, as well as the severity of each injury. For instance, injuries could be minor, moderate or severe, each of which will affect you in different ways. It should be noted, however, that even minor injuries can severely negatively impact your life and may still award payouts in the thousands.

The impact that the injuries have on your life, both in the short-term and the long-term, are critical consideration in motorcycle accident claims. Some injuries may be painful and debilitating for a short while, but other injuries could linger and last for many years or even your whole life, such as paralysis or loss of limbs. The more likely the injury will impact your day-to-day life and your capability of performing normal actions, the higher the chance of receiving bigger damages. Age can also make a difference, especially for young people whose lives will be shaped for decades to come.

It’s not just about action either, but also about your perspective. This is where the area of the injury can affect the compensation you will receive. You may have suffered an injury that doesn’t affect your capability, but if it is visible, then this may make you feel less confident in public. It could cause feelings of judgement and force you to isolate yourself from view. While there is some debate about general inequalities, especially when assumptions are made, gender can also affect a compensation calculation.

Mental Health Impact

The impact of an accident is not always through physical evidence. Accidents can be traumatic experiences, so it’s not uncommon for your mental health to be impacted in some way. This is where a mental health specialist should be brought in to assess how your mental capacity has been affected. Mental health problems are not always immediately evident, especially during the early weeks when shock and physical injuries take priority, but issues must be identified as soon as possible.

The impact of mental health should also not be undermined or treated with contempt. Accidents may make you more nervous, invoke anxiety and increase panic attacks. It may be some time before you even feel ready to get back on the roads as a passenger. Your personality may change, with mood changes and feelings of depression, tearfulness and a lack of motivation. You may engage in avoidance behaviours, such as avoiding the hobbies you loved most, and you may find yourself drinking alcohol and smoking more. These mental health effects can severely impact your life and should be reflected in the compensation.

Financial Losses

Finally, but certainly not least, an important factor of calculating compensation is based on any financial losses you’ve endured due to the accident. This can include loss of earnings due to having to take a period of leave away from work. In severe cases, you may find yourself unable to return to your place of work. If your ability to do certain activities has been hindered, you may even have difficulty finding employment. Other losses can include damage to your vehicle or personal belongings as a direct result of the accident. If you require extra care at home, such as a support worker, the cost of such services should factor into the compensation. The cost of treatment and rehabilitation will also shape the amount of compensation you will receive.


In summary, every affected person and every accident situation is different. A compensation claim should look at all kinds of factors to determine what is right for you and your individual circumstances. There are ballpark figures that provide an estimation of what you may receive, but with several variables, it isn’t easy to provide an exact amount before considering the facts. This is why you need solicitors every step of the way to advise and guide you and make sure you get every little bit of compensation deserved to make your life easier following an accident. Ultimately, the process involves solicitors working with medical experts and yourself to assess injuries and how the accident has impacted you. The solicitors then use this information to form a valuation which can be taken to the claims court. A judge will then use the evidence presented before them, as well as the proposed valuation, to determine how much you should receive in compensation.

Calculate Your Motorbike or Bicycle Injury

We are specialists in accident claims, especially when the accident involves vulnerable road users such as motorcyclists and cyclists. We’re here to help you with any advice and guidance that you need, and should you wish to move forward with a compensation claim, we’re happy to pursue the claim on your behalf. Contact us to speak to one of our solicitors for more information. But otherwise, would you like to know a rough estimation of how much compensation you could claim for your injuries? We have two online calculators available that inform you of how much you could receive for your physical injuries following a motorbike or cycle accident.

Calculate your damages for a motorbike injury with the motorcycle accident compensation calculator.

Use our cyclist accident compensation calculator to calculate the damages you could receive for your cyclist injuries.

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