Liberty Mutual Arbitration Process

Liberty Mutual Arbitration Process

Were you in an accident? Do you have Liberty Mutual Insurance? If you were in an accident and you’re insured, it’s important to understand arbitration. You need to know what it is and how it works. The Liberty Mutual arbitration process is not complex, but it is vital that you know the process and your rights. 

Arbitration is a different way to resolve legal disputes. These disputes take place between insurance companies and the individuals injured in crashes. Arbitration avoids going through a trial or through the Liberty Mutual Claims Process.

Arbitration quickly and efficiently assigns responsibility for damages and injuries. The arbitrator is usually a retired judge or attorney. The downside to an appeal is that you cannot appeal it.

Arbitration is often a better option than going to court. This is because car accident settlement negotiations can be fruitless. Continue reading to learn about the arbitration process with Liberty Mutual Insurance.

The Process Begins

The process begins with you or your insurance company. You write a formal letter to tell the other party or insurance company. This letter states that you intend to go to arbitration to resolve the claim. The first area of negotiation in arbitration is deciding who will arbitrate the case.

Each involved insurance company or party must agree on who this arbitrator will be. An arbitrator is a third party who must be fair and neutral. You can agree to a single arbitrator or to a panel of arbitrators.

Choosing The Arbitrator

After each side has agreed to who the arbitrator or panel of arbitrators will be, they choose a date. This is your hearing date. It’s also the deadline for each entity to submit evidence and documents to the other. For instance, Liberty Mutual might argue about your rehabilitation costs. They could say that yours are more than the other insurance company assumes.

After each side has submitted their evidence, a review period takes place. This could allow Liberty Mutual and the other company to see the other side has a strong argument. This can be an incentive to settle the case before the arbitration hearing. About two-thirds of arbitration cases actually settle before the hearing.

Liberty Mutual Arbitration Clause

Are you trying–but failing–to settle with the opposing party? Post-accident arguments are far too common. They often lead to arbitration. Most insurance companies mandate arbitration because it’s a cheaper alternative. 

There are two different kinds of arbitration:

  • Binding: The decision the arbitrator makes is non-negotiable. What the arbitrator says is what goes. It doesn’t matter whether you like the decision. It’s final and binding for both parties. Binding arbitration also prevents you from suing the insurance company. 
  • Non-binding: Either side can reject the arbitrator’s decision. This often leads to lawsuits.

Don’t let it surprise you if your insurance company requires binding arbitration. Most do. It saves a lot of time and money in the long run. Liberty Mutual is no different. 

There are three types of coverage for first-party auto insurance claims:

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

When to Go to Arbitration

Are negotiations stalling? Perhaps your claims adjuster wants you to take a lower settlement than you deserve. That’s the kind of situation where you’ll want to get an arbitrator. Don’t be afraid to. Liberty Mutual represents you, but their primary concern is saving money. Sadly, this sometimes happens at the policy holder’s expense.

Arbitration Decision Rendered

At the hearing, each side of the dispute presents its version of the case. The arbitrator or panel will review the information. This can take a few weeks, but it can also take months. Once they reach a decision, they will write you a letter with it. It is not appealable and usually does not include the rationale used for the decision. It will state what each side receives, if anything, and who pays various costs.

Liberty Mutual Arbitration for 3rd-Party Claims

Third-party claims take place when you file a claim with the other driver’s insurance company. Insurance companies can only mandate arbitration for their policyholders. They cannot demand third parties to go through arbitration. You can either file a lawsuit or go through arbitration as a third-party. A lawsuit is the direction to go if, as a third party, you don’t get a fair settlement or if arbitration fails.

We recommend consulting an experienced personal injury attorney. This is especially important you’re debating between arbitration or a lawsuit. Lawsuit Info Center has all the resources you’ll need to find the right attorney.

Why Opt for Liberty Mutual Arbitration?

We recommend going through arbitration for the following reasons:

  • Arbitration is cheaper than going to court. You’ll face fewer legal fees and walk away with more money in your pocket. You don’t have to hire an attorney, either. 
  • In small claims court, there are limits to how much you can collect. But with arbitration, you can collect as much as possible.
  • Pain and suffering can be part of the arbitration agreements.

There are several advantages to arbitration with Liberty Mutual Insurance. 

  • Arbitration is a faster process than going through the court system. You can schedule in weeks what would normally take months.
  • Your ruling isn’t subject to a judge who could rule in the other party’s favor.
  • The rules of evidence aren’t quite as strict as they are in the courtroom.
  • You’ll get your money way faster via arbitration than through a judge or jury.

What Happens During the Liberty Mutual Arbitration Process?

The arbitration process is much simpler than a courtroom setting. Liberty Mutual will have an attorney at the arbitration to represent them. But the attorney won’t have any advantage. They will just be there.

The arbitration process is very simple. The arbitrator will examine the facts and make a decision based on those facts. There aren’t any legal maneuvers that will surprise you. You can expect the following steps.

  • Opening Statement: your name, description of the accident, and your claim. Finally, you state what you want out of the hearing for yourself.
  • Case Presentations: Show the arbitrator your evidence. Compel them to take your side through the seriousness of the evidence you show them. This is where you’ll want to include damages and injuries.
  • Closing Statements: State why you should get the compensation you’re requesting. Explain why the other driver was at fault.

The arbitrator won’t take very long to make a decision. Generally speaking, you’ll receive their decision within two weeks. Remember, in this scenario, arbitration is legally binding for the other party.

If you decide to go through arbitration as the third party, have an attorney review your case for you. They’ll give you a free consultation and tell you whether you can represent yourself. They’ll tell you that you need an attorney if they think you do.

How Is Liberty Mutual At Paying Auto Accident Claims?

That depends on who you talk to. Some attorneys will tell you that Liberty Mutual is below average. Many insurance companies prefer to pay for an attorney. They choose this over defending their policyholders. It’s sad, but it’s true. We recommend consulting with an attorney before you make a decision.

Talk to Your Attorney

It’s possible that Liberty Mutual will go to arbitration without your input. The other insurance company can agree to this without the other driver’s input. But, if you are your own party, and you decide to arbitrate, get an attorney. A qualified attorney needs to review your case for you.