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Auto Insurance Alternative Dispute Resolution: Should You Agree to Mediation

Updated: July 6, 2018

Dealing with an auto insurance dispute is never easy, especially when the insurance company offers a vastly different compensation amount to your figures.

In these cases, it is a good idea to look into auto insurance alternative dispute resolution possibilities.

There is always the option of going to trial, but sometimes it makes more sense to use auto insurance alternative dispute resolution methods.

For example, you can go through mediation with the help of your attorney.

Mediation may seem like taking a step down, but it is a great way for both parties to find an agreement so that they can reach a resolution.

What is Auto Insurance?

If you are worried about your auto insurance dispute, it is important to understand the different facets of your auto insurance policy. Only then can you make an informed request about mediation.

When you are seeking compensation, you must have a good idea about the categories of auto insurance you are currently getting in your policy.

A typical auto insurance policy consists of three portions: liability, comprehensive and collision coverage. When you are seeking compensation, you must have a good idea about the categories of auto insurance you are currently getting in your policy.

For example, a person with only liability insurance cannot complain if the insurance company refuses to pay for damages to their vehicle from an accident they caused. These damages are only covered by collision insurance.

Similarly, if your vehicle is vandalized, you only have a claim to compensation if your policy includes comprehensive coverage.

It is also a good idea to have a firm understanding of how much coverage is present in your policy. Make sure you also know your deductible amount, which is how much you must pay out of pocket before the insurance company pays the rest.

What Happens After a Car Accident?

A policy holder must also know what they need to do after an accident. The steps you take following an accident will determine how easily you go through dispute resolution with the insurance company.

As soon as you get home, write down or type up a full account of what happened related to the accident.

Too many people make the mistake of getting angry and fighting with the other driver after an accident. Instead, you should react in a calm manner. Talk with witnesses, take pictures of both vehicles and get checked out for any injuries.

As soon as you get home, write down or type up a full account of what happened related to the accident. Do not leave anything out and do not attempt to change your story. An accurate account will help you as you try to reach an agreement with the insurance company.

If you have multiple pictures of the damage to your vehicle, records of medical expenses related to the crash and witness accounts of what happened, it is much easier to get a favorable settlement.

In many cases, people can avoid having to come up with alternate dispute resolution methods if they are proactive and diligent in the hours and days right after a car accident.

Auto Insurance Alternative Dispute Resolution

Unfortunately, we cannot go back in time to correct past mistakes. If you did not keep proper records of your crash, you may be in a situation where the insurance company is coming up with hugely different valuations to yours.

You must remember that the insurance company is looking after your best interests. If you feel as though they are not giving you a fair offer, contact a lawyer and hire their services.

They may try to dispute the fault of the accident and pin it on you. In other cases, insurance companies will claim that you suffered far fewer damages to the vehicle, which can bring the total compensation down a great deal.

You must remember that the insurance company is looking after your best interests. If you feel as though they are not giving you a fair offer, contact a lawyer and hire their services. An attorney can help guide you through the possible next steps.

While you can take the insurance company to trial, a lot of people recommend going through mediation or other such alternative dispute resolution methods.

The only time you want to go to trial is if the insurance company is completely refusing to play ball, and you can afford to wait a few months before you receive compensation for the car accident and its related expenses.

Advantages of Alternate Dispute Resolution

The reason why alternate dispute resolution is always recommended is because it is a much quicker process than trying to go to claims court. While you can open a civil case against the insurance company, this can take months. And there is no guarantee you will get a favorable verdict.

As long as you have a good attorney and you are willing to compromise, you should not have too many problems in reaching a settlement that suits both parties.

Contrary to popular belief, many car insurance disputes are resolved through mediation. As long as you have a good attorney and you are willing to compromise, you should not have too many problems in reaching a settlement that suits both parties.

This means backing down a little bit from your original demands, but it also means you will end up with significantly more money than the insurance company is offering right now.

But you must never find yourself in a situation where the insurance company bullies you into not hiring an attorney.

Even if you are going through mediation, you need a lawyer by your side. An attorney will have your best interests in mind, and they can walk you through the legal process associated with such proceedings.

How to Get the Best Settlement Through Auto Insurance?

There are many ways to get a good settlement through your auto insurance policy. The first step is to make sure you choose the right policy. This will help you in the long run, because highly rated companies are better to deal with in dispute situations.

Do not be afraid to include lost wages and your medical expenses in the damage report, especially if you are dealing with the other party’s insurance company.

The second way you can guarantee a good settlement is by behaving in a diligent manner after the accident. Record and document everything in order to prove who was at fault for the accident and how much damage you suffered.

Do not be afraid to include lost wages and your medical expenses in the damage report, especially if you are dealing with the other party’s insurance company. The more you ask for up front, the better settlement you will get.

If you start with a very low demand, the insurance company will negotiate you down to an even lower sum.

You do not want to make unreasonable demands, but you also want to fight for the compensation you are owed after a car accident. This includes car damage, medical expenses and wages you lost by having to skip work.