A car accident comes under a personal injury lawsuit. A claim can be made by the injured party or by the relatives or friends of the injured party in relation to the damage caused by the other party in an accident. The claim is dealt with by the insurance companies of both parties to decide on proper compensation for all the damage caused.
Since almost all the drivers are insured, the insurance agent must determine the extent of damage caused and must be able to negotiate with the other party on behalf of the injured person. Both insurance companies can negotiate and decide on a correct monetary compensation that might be able to cover all the damage caused by the accident.