Rather than spending a day in court with your insurance company why not go into mediation agreements or if your disagreement requires a bit more negotiation, arbitration. The two greatest differences between the two are that anything suggested in mediations can be taken as just that, where as in arbitration, it is final. Also mediation costs less than arbitration. Mediations and arbitrations are not fun for either side, so be sure before going into either, to first let your insurance agency know you're not pleased by sending letters and documents on why you are not pleased. If the agent you are dealing with cannot help you, get in touch with the claims department or complaint department. Be sure you know your auto policy, since no one wants to look like a hardheaded individual over something that could have been handled in a civil manner.
When dealing with the insurance company directly just isn't working, then and only then, go and contact the insurance department for your state. You can also call a toll free number for the National Insurance Helpline if things are still not being settled to your satisfaction. Many insurance companies will also offer arbitrators to help with settling the problem and see if the sum amount offered was right or not. Remember that you do have a right to have an attorney at either a mediation or arbitration. You can have an attorney if you want them to deal with the case along with you. Just remember you will have to pay them as well.
Start with Mediation
Mediation is always a great idea to begin with instead of arbitration because it can keep each side from having to spend a large amount of money, unlike arbitrations. What takes place in mediation is a "mediator" will act on behalf of both parties to try and settle the dispute that will be acceptable to both parties. The mediator can only give suggestions on what could be done since they are not able to make anything said binding. In order to begin mediation you would need to fill out a form called a Demand of Arbitration. Even though it says arbitration there will be a section that will ask you to choose if you want mediation or an arbitration to occur.
If Mediation Fails, Arbitration takes Place
In order to begin arbitration, both parties have to agree to it and the same goes for mediation. Arbitration is stricter in the matters and their suggestions are more like orders; they are binding. Often times when arbitration occurs, it is a good idea to have an attorney with you in the meeting. Also, if you want your attorney to represent you during the meeting, then you have to tell the insurance agency that this will be happening. The same goes for the insurance company.
Arbitrations are very closely run as a court hearing. Both sides will give evidence to their case as well as witnesses. An arbitrator has enough power to subpoena documents and even witnesses, gather information to the case, and even extend or create a deadline if needed. They will also establish if you are entitled to a certain degree of money for the damages, though it cannot be higher than what the policy you are under will allow. Also if you have come to an acceptable decision with the insurance company before the deadline is up, this can be submitted in the hearing and accepted.
After the Agreement Takes Place
After arbitration has reached an acceptable decision, that is all she wrote. The decision will be final so it is best that you have the best case possible so your chances of success are at a maximum. When preparing your case, keep in mind that insurance companies have certain software that will tell them how much your car is worth instead of basing it on the Kelly Blue Book or NADAG (National Automobile Dealers Association Guide). Always make sure that the price is higher than what is being offered, otherwise arbitration is just a waste of both your and the insurance companies time.
It is required that you have your case, evidence, witnesses, and lawyer if you want one, ready before the scheduled time of arbitration. If you have a lawyer, it is recommended for them to help in compiling any questions and answers that you have for an insurance company or they may possibly be brought up during the hearing. On a final note, arbitrations are just a skip away from a full-fledged court hearing. Even though arbitrations are handled much like a court case is, the mentioning of a "trial" can be intimidating to both sides and often not needed. Going to a full-fledged trial will only increase expenses. By adding a lawyer to arbitration you total cost for one will be lower then for a court case.
