Allstate Arbitration Process

Allstate Arbitration Process 

Were you in a car accident with injuries? You probably expect the car insurance company to pay for your medical bills, lost earnings, pain, suffering, and property damage. But insurance settlement negotiations sometimes stall. Going through the Allstate arbitration process could be the best option to settle your car accident claim. 

Arbitration is a form of alternative dispute resolution (ADR). In arbitration, both sides choose a neutral third party to weigh the case’s facts and render a decision. Most auto insurance companies use arbitration to settle car accident claim disputes. Allstate requires an arbitration to resolve first-party claim disputes. A first-party insurance dispute is one with your own insurance company. 

Below are details about the Allstate arbitration process, Allstate claims, and sample Allstate auto accident settlements and verdicts.

Allstate Arbitration Clause

An Allstate car insurance policy is a contract between you and the insurance company. When settlement negotiations fail, arbitration can be a faster and less expensive solution than a lawsuit. That is why most insurance companies mandate arbitration before a case can proceed.

  There are two forms of arbitration

  • Binding: The arbitrator’s decision is final and binding for both parties. Don’t like the decision? Unfortunately, you cannot appeal. 
  • Non-binding: Either side can reject the arbitrator’s decision. If that happens, a lawsuit may proceed. 

Allstate, like most auto insurance companies, has binding arbitration in its insurance policies. There is a mandatory arbitration clause if you file a car accident claim with Allstate. 

A first-party auto insurance claim usually is handled under one of these coverages: 

  • Personal Injury Protection (PIP) coverage
  • Medical payment coverage
  • Underinsured or uninsured driver coverage

If your auto accident settlement negotiations stall, you may need to go to arbitration. You cannot sue your auto insurance company if they have a binding arbitration clause. If you cannot get a fair settlement, you need to go to arbitration. 

However, your claims adjuster may try to get you to take a low settlement and avoid arbitration. Going to arbitration suggests the adjuster did not do their job. Going to arbitration is more expensive than settling. But sometimes it is necessary if Allstate does not make a fair offer. 

Allstate Arbitration for 3rd-Party Claims

When you file an Allstate car accident claim with the other driver’s insurance company, that is called a third-party claim. The auto insurance company cannot force a third-party claimant to enter arbitration. You will just file a lawsuit with that company if they do not offer a fair settlement. 

Arbitration can be a better deal for you than going through a lawsuit. It is a good idea to talk to an experienced personal injury attorney listed at Lawsuit Info Center to determine if arbitration or a case is the better option for you. 

Why Opt for Allstate Arbitration?

Allstate arbitration has three financial advantages: 

  • Arbitration costs less than a lawsuit. With arbitration, legal fees are less, and you get more money in your pocket if arbitration is successful. You also do not have to use an attorney in arbitration if you choose not to. 
  • There are no monetary limits in arbitration, unlike small claims court. 
  • An arbitration agreement may include pain and suffering. 

Allstate arbitration has four procedural advantages: 

  • You can schedule arbitration quicker than a court date. You can probably resolve the case faster and get money in your pocket. 
  • You are part of choosing who will arbitrate the case. You have little control over who the judge and jury will be in a court case. 
  • Evidence rules in arbitration are not as stringent as in a court case. 
  • Money comes faster after an arbitration ruling than a jury verdict. 

What Happens During the Allstate Arbitration Process? 

It is not required to have an attorney during the arbitration. These proceedings are less formal than a court trial. Allstate will have an attorney representing them, but the attorney does not have any advantages during the arbitration. The arbitrator decides the case based on the facts presented; there are no complicated legal maneuvers in these hearings. 

If you know your facts and evidence, you will be on equal ground with Allstate’s attorney. If you have more severe injuries and damages, you may want to have an attorney, however. 

The arbitration hearing generally follows these steps: 

  • Opening statement: You give your name, describe the accident, and claim and say what you want to get from the hearing. 
  • Case presentations: Layout your evidence to the arbitrator and make as strong a case as possible. Show documented proof of your damages and injuries. If the insurance company disputes liability, you need to explain why the other party was at fault. 
  • Closing statements: End the hearing by going over why you deserve compensation for your injuries and why the other driver was liable for the accident. 

Expect an arbitration decision within one or two weeks. There is usually no appeal. If you decide to try arbitration, have your case reviewed for free by a personal injury attorney. They will tell you if there is a benefit in having an attorney present or if you can handle it on your own. 

How Is Allstate At Paying Auto Accident Claims? 

Some attorneys say Allstate is below average in paying bodily injury claims. They say that Allstate prefers to compensate its attorneys for defending a suit rather than offer a fair settlement to the victim. When Allstate determines the full value of a personal injury case, they often offer less pain and suffering compensation than other companies. 

When dealing with Allstate, you may be better off having a personal injury attorney handling your settlement negotiations. 

Sample Allstate Car Accident Settlements

Everyone wants to know how much they can get in an Allstate car accident settlement. No cases are the same, but we list some accident settlement examples below. These examples might give you an idea of what your case could be worth. However, your claim might be worth more or less, so you should find a car accident attorney with the Lawsuit Info Center search tool for more information.

$100,000 Allstate Car Accident Claim 

A car hit another driver in a rental car who was working at the time of the accident. The driver suffered a tibial plateau fracture, which is a broken lower leg. Surgeons put screws and a plate in his leg. He also needed a cast. 

Allstate insured the negligent driver’s vehicle. The driver had only $100,000 in bodily injury coverage on his policy. This was not enough to cover the victim’s damages because he had surgery. Within a week of the car accident, Allstate sent a check for $100,000. However, the attorney told the client not to deposit it. Why? 

The victim had Georgia uninsured motorist coverage, so his attorney wanted to keep the case open. The crash victim needed to go to physical therapy. A van would pick him up in his wheelchair and take him for treatments. 

Traveler’s ultimately paid $200,000 to settle the case. The total settlement was $300,000, with the Allstate settlement of $100,000 included. Pain and suffering compensation comprised most of the payment. 

$100,000 Allstate Car Accident Claim

A car hit another vehicle in Miami. The passenger in the second car suffered a herniated disc and needed back lumbar fusion during his recovery. The police ticketed the responsible driver, who had Progressive insurance. 

The car that the accident victim was in had underinsured motorist coverage through Allstate. 

The case could have settled for more, but insurance limits were a significant factor here. The case ultimately settled for $150,000. 

$75,000 Allstate Car Accident Settlement 

An injured female driver suffered knee and back injuries in a car accident. She needed arthroscopic knee surgery and epidural injections in her back. 

Progressive insured the negligent driver. The company paid $50,000 under bodily injury liability, and Allstate paid $25,000 under its underinsured driver protection. The case settled for $75,000. 

$2 Million Allstate Drunk Driver Settlement 

A 19-year old drunk driver hit a woman in a crosswalk in Boca Raton, Florida. He allegedly fled the scene and did not help the injured pedestrian. She died at the scene and left four children behind. 

The pedestrian’s son sued the driver and car owner. In Florida, the car owner is liable for up to $100,000 for injuries because of a driver’s negligence. 

The son also sued the car owner, saying he should not have let the driver take his car. The adult children also claimed that the drunk driver struck her that some limbs tore off. 

Geico insured the drunk driver with $10,000 bodily injury liability coverage. Allstate insured the vehicle owner with $100,000 in BIL coverage. However, the car owner also had a $2 million umbrella insurance policy. 

Allstate denied coverage on the $2 million policy at first. Allstate and Geico ultimately paid the full amount on all policies to settle. The final settlement was $2.1 million. 

Get Legal Help With the Allstate Arbitration Process

If you plan to go into Allstate arbitration, having a skilled lawyer can enhance your fair settlement chances. Lawsuit Info Center can help you find an experienced personal injury attorney in your area. Use our site to find a licensed attorney near you today. If you are working with other insurance companies, see our pages on the State Farm arbitration process or the Allstate arbitration process

Frequently Asked Questions about car accident settlements

Yes. There is no formal evidence process. This means you must rely on the skill and experience of your arbitrator to understand the evidence. There are no depositions or interrogatories. There also is no discovery process. The outcome of the case boils down to the arbitrator doing their job well.

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It costs less than a trial and takes less time, too. Generally, it is a good idea to go to arbitration before taking a case to court. You have a chance to resolve the issue faster with fewer attorney fees.

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It means the claims adjuster did not do their job well. A claim that enters arbitration costs the company more money. If you struggle to get a fair settlement from Allstate, tell them you want to go to arbitration. This may lead them to increase their offer.

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Most auto insurance companies let you resolve a claim through an out-of-court hearing called arbitration. It is less formal than a court trial. Arbitration is an informal legal proceeding where you and the auto insurance company present evidence to an arbitrator. The decision is usually binding, and there is no appeal. This process is generally faster and less expensive than a court trial.

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