When dealing with your insurance company after an accident, it is necessary to read the fine print. Most insurance policies contain a provision that calls for arbitration in the event that the policyholder and insurance company disagree on a settlement figure. In this regard, the process of arbitration would replace the process of litigation. This article will discuss what to do when you and the insurance adjuster are in disagreement on a settlement figure.

If your policy requires that you and your insurance company settle disputes through arbitration then it is necessary that both you and the insurer comply with such a decision made by the arbitrator. It must be noted that with such forms of arbitration the main situations that call for it is whereby damages are the only issue in dispute.

One article states that “arbitration provisions in insurance policies are often called appraisal clauses. In this regard each party hires an appraiser to look up the claim and recommend a settlement figure. If the appraisers can’t agree on a settlement figure a third neutral appraiser is brought in to look at the claim. A decision by any two of the three appraisers is typically binding on the parties. Either party may invoke the appraisal clause when a settlement cannot be reached. It must be noted that the process itself can take anywhere from a couple of weeks to a couple of months.”

While arbitration maybe a part of a policy, the process in itself is considerably less costly than litigation, however, it is not free. Therefore, it is to be expected that each party pay for his or her own appraiser and share the cost of a third-party appraiser. One lawyer advised that, “if these costs are more than what you are hoping to get in a settlement then it is of the utmost importance to rethink your strategy as it should not cost you more to go through arbitration than will otherwise gain after settlement has been reached in your favor. Take note that where an insurance company does not act in good faith and fails to honor a binding arbitration decision this insurance company can be sued in a court of law.”

Another available option to dispute resolution is mediation. In mediation a trained mediator meets with the parties to the dispute both individually and collectively in order to try and help the parties come up with an agreement in order to resolve the dispute. However, it must be noted that mediation generally is not binding.
There are other options available to you if arbitration and mediation fail. These include the following:

Small Claims Court - the Small Claims Court allows you sue without using the services of a lawyer. However, it has a maximum amount for which you can sue for.

Department of Insurance - this allows you to put forward complaints at your state’s department of insurance with regards to your claim if your insurer wrongfully denied coverage, acted improperly or refuses to negotiate a settlement.

File a lawsuit - you can sue the person responsible for the accident if you are not getting anywhere with insurance adjuster, the claim is more than the maximum limit of your state’s Small Claims Court, there are insurance coverage issues or your statute of limitations is set to expire within 2 or 3 months. Where a claim involves serious or permanent injury it is best to seek legal representation from Wasilla car accident lawyers .

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