You recently found out that the insurance company’s final settlement offer is significantly lower than what you anticipated. What should you do next? If you believe your insurance claim is worth more, you may want to consider an out-of-court process known as arbitration.
What is Car Accident Arbitration?
Arbitration is a way of resolving disputes without having to file a lawsuit. This legal proceeding is less formal than a courtroom jury trial and how it works is that you and the insurance company will each present information about your case to the arbitrator. During the arbitration hearing, each side lays out their points and presents the evidence they have. Unlike the typical courtroom setting, arbitration procedures are different and everything that takes place during the sessions stays confidential.
It’s also different from mediation in that the arbitrators are given the authority to make binding decisions and rulings.
The Arbitration Process
Before a claim goes into arbitration, both parties (you and the insurance company) must mutually agree that it is the course of action you both wish to take. You must also agree on the arbitrator – a neutral third party who will hear each side without biases.
Here’s how the arbitration process works:
- First the arbitrator needs to be appointed and agreed upon by both parties.
- Then each side will be given the opportunity to present their case to the arbitrator, call witnesses if necessary, and provide any additional evidence to support their claims. Each side will also be given the chance to cross-examine the witnesses.
- After considering all the information presented, the arbitrator then makes a final decision called the award. This decision outlines the resolution of the dispute, including any compensation or other remedies awarded to either party.
If the arbitration is binding, then that means their decision cannot be appealed. If it’s non-binding, the decision is not enforceable by law and may only be deemed advisory.
Requesting for Car Accident Arbitration
When your efforts to resolve your car accident claim reach an impasse, arbitration may be the only way to move forward. Your insurance adjuster may not like the idea as it is costly and time consuming (compared to merely handling an insurance claim) but if negotiations continue to falter, you should formally request arbitration by sending a written request via certified mail to the insurance company.
Is a Lawyer Required for Car Accident Arbitration?
Having a lawyer is not required for car accident arbitration hearings. In fact, you might find it easier to represent yourself since the rules and procedures are less formal compared to court proceedings. But if your accident caused serious injuries and substantial financial losses on your part, hiring legal representation can help strengthen your case since lawyers are very familiar with the ins and outs of the arbitration procedure.
Besides, insurance companies have lawyers representing them during arbitration, so having your own legal counsel helps protect your interests especially if the arbitrator’s decision is binding.
A lawyer’s contingency fee is a payment arrangement where the attorney only receives compensation if the case is successful, typically a percentage of the awarded amount.
How to Prepare for Car Accident Arbitration
Preparing for car accident arbitration requires thorough organization and preparation to present your case in an effective manner to the arbitrator.
- Start by gathering and organizing all relevant documents, such as your medical records, pay stubs, vehicle repair receipts, police report and medical report. You also need to send copies of all these documents to both the arbitrator and the opposing party.
- Prepare photos and videos of the accident scene. You should also bring reference diagrams/illustrations from the police report which will serve as visual evidence for your case.
- Plan your testimony carefully and be sure to include all the key points you want to convey to the arbitrator. You will likely receive arguments from the other party so have a rebuttal ready for each possible argument they will throw at you.
- If you have witnesses, help them prepare in advance by giving them a list of questions you will ask. They should also be ready for cross-examination from the opposing party.
- When the other driver is uninsured, it can complicate matters, potentially requiring legal action or relying on your own insurance coverage for compensation.
Car Accident Arbitration Timeline
One advantage of car accident arbitration is it’s faster than a lawsuit and relatively cheaper as well. While timelines can vary for each case, here’s a typical progression you can expect should you decide to take the arbitration route:
Days 1-60
The process begins with the filing of the arbitration, followed by the initiation of proceedings and the selection of the arbitrator.
Days 61-90
Exchanging of information, data and evidence as well as preparation for both sides.
Day 91-100
Arbitration hearing which can last a day or several days. Both parties present their arguments, call their witnesses and submit evidence to the arbitrator.
Days 101-110
The arbitrator deliberates and issues a decision within this timeframe.
If you believe that arbitration is your only option, tapping the expertise of a lawyer may be a smart move. Car accident lawyers often provide free consultations and work on contingency fee basis which means they only get paid if you get an arbitration award or win a settlement.