Farmers Insurance Arbitration Process
After a car accident, there are steps that you must take to get your car fixed and get compensation for damages. There are a couple of ways to obtain compensation, one of which being arbitration. If you were in an accident and have Farmers Insurance, you should understand the Farmers Insurance arbitration process.
While most people often think about a lawsuit after an accident, there are other, simpler, methods to solve your situation. Arbitration is an alternative method to resolve legal disputes without going to court. This process resolves who is liable to pay for car accident damages and injuries between two insurance companies.
Arbitration can be a wise course if car accident claim settlement negotiations
with Farmers have broken down. You can learn more about the Farmers insurance claims process here
The Farmers Insurance Arbitration Process is simple. You or your insurance company request arbitration for your claim. Then, all parties agree on selecting an arbitrator. The arbitration takes place and the arbitrator reaches a final decision. You cannot appeal this final decision.
Find a more thorough explanation of this common legal recourse down below.
What Is Arbitration?
Arbitration is a legal recourse you can use to solve a dispute. While its result is legally binding and a judge can enforce the final decision, the entire process happens outside of a courtroom, between private parties. This process isn’t for car accidents alone. Arbitration is often employed to solve a fair number of legal disputes, most of them commercially-related.
As soon as one of the parties involved in a legal dispute calls for arbitration, all parties must attend to its process. If you, your insurance company, or the other parties involved in a car accident call for arbitration, everyone will be involved in one – until the arbitrator gives a final decision.
Every arbitration follows the same procedure, and the Farmers Insurance Arbitration Process is no different.
How Does the Farmers Insurance Arbitration Process Work?
If you don’t want or can’t go through a lawsuit, you can take your car accident claim to arbitration. This often happens when the claimant feels he isn’t getting due compensation for his troubles.
Keep in mind that if you decide to go down this legal route, an adjuster will contact you and try to talk you out of doing so. The adjuster is a representative of the insurance company whose job consists of settling insurance claims. Because of that, we highly suggest you hire a lawyer when you are considering arbitration. A lawyer can help you better weigh your options.
If you choose to follow through, you must present the arbitration request in writing. Sometimes, your insurance company will decide to take your insurance claim to arbitration as well.
Selecting an Arbitrator
Whether you or anyone else involved has requested arbitration, there’s one step to go through before it takes place. All parties must agree on an arbitrator. This arbitrator will oversee your Farmers Insurance arbitration process.
An arbitrator is a local attorney who has years’ worth of experience in legal disputes. Keep in mind the legal fees vary depending on who you decide to hire.
It usually takes a week or two to get your confirmation letter after someone requests arbitration. Once that happens, it’s time to select an arbitrator. Most insurance companies have preferences on different arbitrator organizations they use for this matter. Remember you also have a say in which arbitrator will take over the reins of your legal process.
Presentation and Statements
Once all parties agree on an arbitrator, the next step is to schedule a date for the hearing. This same date is also the deadline to present evidence and documents pertaining to the claim.
You and your insurance company must present all evidence and documents. It is vitally important after an accident and throughout the claims process that you keep all documents and records regarding the accident. That information will usually determine whether you win or lose your claim. If your claims for medical costs or other damages are not backed with solid evidence, there may be some dispute between the insurance companies.
There’s a brief period where all parties involved will review the case and evidence before the arbitration. Sometimes, parties will settle before the hearing date. With all of the evidence before them, an insurance company may realize how strong is case is in favor of the other party.
If not, the arbitration will take place. All parties involved will present their case, alongside an opening and a closing statement. After that, the arbitrator will give his final decision.
A notification of the arbitrator’s final decision should go out 10 to 14 days after your arbitration date. Both you and your insurance company will receive this notice. The arbitrator issues an awards statement that is brief and states what each side of the case gets and who pays for which fees.
Most insurance claims involve a binding arbitration. This means the decision is final and impossible to appeal. For this reason, we suggest you talk to a qualified attorney before deciding whether to take your claim to arbitration.
Once the arbitration is over, you can’t take it to court. Arbitration decisions cannot be appealed.
What Are the Advantages Of the Farmers Insurance Arbitration Process?
Faster turnaround. A lawsuit can turn into a grueling process that takes ages to start. Arbitration is often over in 30 to 60 days. Payment happens in two weeks.
More affordable than a lawsuit. Although you have to pay the arbitrator’s fees, the entire process costs less than your average suit.
No monetary limit for compensation. Small claims court has a monetary cap for compensation. Arbitration has no such thing
Everything matters. Everything, including pain and suffering, goes into consideration to calculate due compensation.
You’re involved in the process. You can choose to request arbitration, help decide to select the arbitrator, and stay involved in the entire process. We recommend hiring an attorney if you choose to do so.
Are There Disadvantages To the Farmers Insurance Arbitration Process?
While arbitration presents plenty of advantages, you must also consider one important drawback. You cannot challenge it after the process is over.
This fact may seem like it holds little weight if you believe you’ll win your case, but it can leave you with more trouble than before. You might end up paying the arbitrator fees as well as losing your claim altogether.
Should I Hire a Lawyer For the Farmers Insurance Arbitration Process?
We cannot stress how important it is to have qualified legal counsel by your side before attending arbitration. There are countless variables and legal procedures you must take into account before winning a claim of this kind. An attorney can help you understand them all and steer your case in the right direction.
Your insurance company may decide to go to arbitration on its own. But if the matter involves you, it is wise to have the case reviewed by an experienced arbitration attorney. Hiring a lawyer can also be the difference between paying a small consultation fee and losing a considerable amount of money after losing your insurance claim arbitration.
Are you considering hiring a lawyer for your Farmers Insurance Arbitration Process? Reach out to us today for a free consultation today. We can discuss your case and your options if you are unsure of your rights.