An “appraisal clause” is a feature of many auto insurance policies. It means that any disputes between policyholders and insurance providers are to be arbitrated, not litigated in courtrooms. Each party must hire an appraiser to evaluate the claim and to make any settlement offers. If they are unable to reach an agreement, the appraisers will present their disagreements to a third appraiser. The “umpire” is an appraiser. The decision will be awarded if the three appraisers can agree to it.
Arbitration Cost
Arbitration is not always free. Arbitration is not free. However, it is much more formal and cost-effective than a court proceeding. Each party is responsible for paying the arbitrator. Each party will pay the arbitrator and split the cost if a third arbitrator is needed to make the final decision. Both sides want to resolve the matter before it gets any further.
Arbitration fees vs. Your Settlement
The arbitration process will not be worthwhile if the appraiser fees are more expensive than the actual settlement. Before you make your final decision, take the time to consider whether arbitration is something you would like to do. Before you move forward, you want to be sure that it is financially feasible.
If you cannot reach an agreement, both you and your auto insurer company can initiate the appraisal clause. The arbitration process can take from a few weeks to several months. These are some tips to help you close your settlement claim.
Talk to a lawyer about the reasonableness of the settlement you seek.
– Follow the chain of command. Talk to the adjuster’s manager or supervisor. These are the people who set the dollar range that the adjuster can use to negotiate your settlement. They may be willing to accept an increase.
– Contact your state’s Department of Insurance to file a complaint.
– Get an attorney to represent and negotiate for you
Be Prepared
You should have done your own investigation into the accident. All documentation should be collected. All documentation is important. These documents include receipts, car repairs estimates, medical bills, and proof that you missed work. Your injuries from the accident are the most important aspect of your settlement. To show that you have a financial need, be prepared to provide all your medical records, reports, and bills. The settlement should cover your current and future medical expenses. Your doctor should write an official statement detailing your injuries and any future treatment.
Also, you should set a limit on how much you will accept for pain and suffering. When calculating pain or suffering, the rule of thumb is to use three times your medical bills.
Your auto insurance company is considered to be acting in bad faith if they fail to honor the arbitrator’s decision. It is possible to get help from an experienced attorney in these cases and bring them to court. You may need to move quickly if you decide to take legal action. It is important to not miss the deadline for your case.
