Why Is My Car Accident Claim Going to Arbitration in Scottsdale?

The aftermath of a car accident can be confusing, which is why it can be helpful to get a Scottsdale car accident attorney. Arbitration is an alternative dispute resolution process designed to settle disputes outside of court. If your car accident claim is going to arbitration, it’s likely because of provisions in your insurance policy or state laws.

What Is Arbitration, and Why Is It Used?

Arbitration is a process in which a neutral third party hears evidence from both sides of a dispute and makes a decision. This approach is sometimes chosen because it is often faster and less costly than going to court. 

Some car accident claims also go into arbitration because of provisions built into insurance policies. These agreements sometimes require arbitration for disputes over coverage, liability, or compensation.

How Arbitration Differs from Mediation

People sometimes confuse arbitration and mediation, but they are distinct processes. Arbitration involves a neutral third party judging evidence and coming to a binding decision which all parties are obliged to follow. Mediation involves a neutral third party helping everyone involved reach a voluntary agreement. 

Mediation is non-binding and focuses more on negotiation. Arbitration has more in common with a traditional trial.

What Types of Cases Are Sent to Arbitration?

In Arizona, all civil disputes under $50,000 are sent to arbitration. The court can waive this if both parties provide reasons to take the case to court, however. Outside of these parameters, there are a few situations that can trigger arbitration:

• Uninsured motorist claims: If you’re in an accident and the driver at fault lacks sufficient insurance, your own insurance provider may be responsible for compensating you. Disputes over these claims can lead to arbitration.
• Policy disputes: If your insurance company denies you coverage or offers you a settlement you find inadequate, arbitration might be the next step.
• Fault disputes: Arbitration can be an easier route to resolution when there’s a disagreement over who caused an accident.

What Happens During Arbitration?

Arbitration is more informal than a court trial but it still follows a structured process. Here’s a simple breakdown of the process:

• An arbitrator is chosen: Both parties agree on a neutral arbitrator or a panel of arbitrators. This person is usually an experienced attorney or retired judge.
• Evidence is presented: Both sides present evidence, including medical records, police reports, and witness testimony, to support their side of the case. Each side also has the opportunity to make arguments, question witnesses, and clarify evidence.
• A decision is made: The arbitrator reviews the evidence presented and issues a binding decision.

The process of arbitration is private and typically takes less time than court proceedings, often concluding within a few months.

Should You Hire a Lawyer for Arbitration?

While arbitration is less formal than a court trial, it’s still a legal process, and having a lawyer can be helpful as you navigate it. Knowing who to call after a car accident in Scottsdale and how long car accidents affect insurance rates in Scottsdale can be highly valuable information.

If you choose to hire an attorney, they can gather evidence, interview witnesses, and present a compelling argument on your behalf. Even in arbitration, rules and procedures can be complex, and a lawyer can ensure that everything is handled correctly. It’s also sometimes the case that the threat of a well-prepared case is enough to encourage insurers to settle even before arbitration.

In Conclusion

Arbitration can be an effective way to resolve disputes in car accident claims, offering a faster and often less expensive alternative to court. However, it’s essential to understand the process and its implications. Whether arbitration is initiated by your insurer or required by the circumstances, having the right information–and legal representation–can help you get the best outcome for your case.

About the Author

Joseph D'Aguanno

Guided by the belief that being a highly skilled specialist in a narrow field is better than being ordinary in everything, Joseph “JD” D’Aguanno leads Arizona’s best personal injury law firm in Phoenix, AZ. Having extensive cross-training in pre-litigation negotiations and trial lawyer skills, with decades of experience, JD strives to provide clients with the most valuable legal services a personal injury lawyer can provide. Under his direction, Gage Mathers Law Group is an award-winning personal injury law firm providing aggressive representation to victims of a car accident, medical malpractice, dog bite, motorcycle accident, and other injurious events. Gage Mathers is trusted by thousands of lawyers and clients throughout the country because of their reputation for getting clients the maximum compensation they deserve.

Years of experience: Over 23 years
Bar number: 020421
Location: Phoenix, AZ
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