Airbag deployment has been responsible for huge death, incidental injuries and broken bones due to low crash severity and wrong deployment decision. This misfortune has led the authorities and the industries to pursue uniquely designed airbags incorporating crash-sensing technologies. This paper provides a thorough discussion underlying crash sensing algorithm approaches for the subject matter. Unfortunately, most algorithms used for crash sensing still have some problems. They either deploy at low severity or fail to trigger the airbag on time. In this work, the crash-sensing algorithm is studied by analyzing the data obtained from the variables such as (i) change of velocity, (ii) speed of the vehicle and (iii) acceleration. The change of velocity is used to detect crash while speed of the vehicle provides relevant information for deployment decision. This paper also demonstrates crash severity with respect to the changing speed of the vehicle. Crash sensing simulations were carried out using Simulink, Stateflow, SimMechanics and Virtual Reality toolboxes. These toolboxes are also used to validate the results obtained from the simulated experiments of crash sensing, airbag deployment decision and its crash severity detection of the proposed system.