Christopher

Car accidents are stressful events with numerous negative consequences in your life. Some of them have to do with all the effort you must make to pay medical or car repair bills. Negotiating with the insurance company and getting them to approve your claim isn’t a walk in the park either. Insurance companies are profit-oriented businesses and have an interest in settling for the smallest amount possible since it shows in their profit margin. You, on the other hand, have to make sure that you won’t have to pay for medical expenses or other costs out of your own pocket, especially if someone else is at fault for the accident. That’s why it’s critical to get in touch with a reputable St. Louis car accident attorney before embarking on this process.

Let’s imagine that you’ve contacted the insurance company to let them know about the accident. Shortly after, they call you back with an offer. Don’t take it, even though bills are piling up and you are desperate to pay them. Quite often, this offer is less than what you deserve and only represents a starting point for negotiations.

So, what should you do when you are presented with an offer you see as unfair?

Negotiate Further with the Insurance Company

Before you start thinking of other ways of solving a dispute, begin by negotiating with the insurance company. This is the point where you should speak with an experienced attorney if you haven’t done so already. The methods of calculating a fair amount for the settlement need to be based on hard evidence, and an experienced attorney will help you set realistic expectations.

Hire a Mediator to Solve the Dispute

Mediation means hiring a third party to overlook the negotiations and get the two sides to reach an agreement or conclude that they cannot agree. A mediator does not have the authority to impose a certain outcome for the dispute, but they can moderate the discussions between you and the insurance company, facilitating the communication.

Request Arbitration

Arbitration, on the other hand, is a legally binding method of solving a dispute. A neutral arbitrator will analyze the evidence and declarations of both parties and decide an outcome for the dispute. The arbitrator must be agreed on by both parties. This step is usually taken before going to court to avoid a costly lawsuit for both you and the insurance company.

File a Lawsuit

If all the other methods fail to help you reach an agreement, you can file a lawsuit against the insurance company. Be certain to do so only when you have the means to prove that the settlement is unfair or if you suspect that the insurance company acts in bad faith.

In either case, reaching a fair settlement can be time and money-consuming, and it is best done with the support of a St. Louis auto accident attorney with experience in these types of claims.

A car accident is not only a traumatic event but can be a costly one too. You have to deal with medical expenses, lost wages, therapy, and so on. Negotiating a settlement with the insurance company will help you cover these costs and recover your health without going bankrupt.

However, what if the insurance company denies your claim or the amount they are offering is very low? The next step would be to take things to court, right? Well, before getting into a stressful trial, there is another solution your attorney may suggest: arbitration.

What Is Arbitration?

Arbitration is an ADR (alternative dispute resolution) where a neutral person decides the outcome of your dispute with the insurance company after hearing both sides and evaluating the situation. Judges or attorneys (retired or still active) are usually in charge of arbitration. Arbitration is legally binding for both parties, even though it’s less formal than a lawsuit dispute.

The difference between arbitration and mediation is that an arbitrator has the authority to decide the outcome of the dispute, whereas a mediator will only work with both parties so that they come to an agreement.

Generally, arbitration needs to be agreed upon by both parties, but in some cases, it’s a mandatory step before the case goes to court. For example, if the dispute is between you and your own insurance company, you can expect to have a clause in your policy that states this.

Who Chooses the Arbitrator?

Either party can nominate an arbitrator, but both parties must agree on having that person or group arbitrate the dispute before the process begins. You can choose an arbitrator by contacting arbitration groups. The insurance company can also suggest a list of arbitrators you can choose from.

Arbitration Details You Should Know about

• “High-low” agreement: an interval set before the arbitration that establishes a low and a high limit of the settlement you could get in the end.
• There are two types of arbitration: binding and non-binding. The latter allows you to still file a lawsuit if you don’t agree with the arbitrator’s decision.
• Bring the same evidence you would have in court. Even if it’s not a lawsuit, arbitration follows the same process of backing up claims with evidence, so make sure you build a strong case file containing all the necessary evidence
• A St. Louis auto accident lawyer to represent you through the arbitration process is not mandatory, but we strongly recommend speaking with one, as this is a dispute, after all.
• Carefully check your policy contract before filing a lawsuit against your own insurance company. A binding arbitration clause may be in place, which requires you to take this step before filing a suit.

In conclusion, arbitration is meant to solve a dispute before the case goes to court. It is different from mediation and, although not as formal as a lawsuit, it has the legal power and should be taken as seriously as a court case.