Do you have to go to arbitration?
The answer really is depends. Going to arbitration is a cheaper alternative than going court. The down side is that most arbitration awards are no appealable (meaning if you lose, you lost). So in many ways this can be a complete gamble.
Arbitration is almost a guarantee when there is a dispute between two insurance companies. Joe Smith hit you as you were driving the road and your insurance and his insurance disagree as of what happened. Most insurance companies (the ones that own substantial market share of auto insurance policies) have an agreement have an independent claim adjuster decide which decision is correct.
Insurance adjusters know this process and it is part of the day to day job. They do not put too much emphasis in the process. Most insurance adjusters (even the very good ones) know that they will win some cases and will lose some. So you need to review your file before it is submitted to the arbitration panel.
Do you have to go to arbitration? The answer is in your policy. There are clauses that make you agree to arbitration settings. Most of these clauses make you agree to this for disputes between you and the insurance or between your carrier and some else’s carrier. You do not have to go to arbitration when you want to sue someone directly! The best advice is to read your policy!
Do you have to go to arbitration? Click here to read more about mandatory arbitration clauses
