If both parties have auto insurance and are involved in an auto accident, can they request arbitration through their insurance companies?
Question Details: Being sued in small claims court due to auto accident but I am interested in settling out of court through ADR. What are my options in terms of arbitration or mediation?
Some insurance policies mandate that disputes be resolved through arbitration or mediation. It would be best for you to check your policy or with your auto insurance agent first. You always have the option to suggest an arbitration or mediation in any matter. In Arizona, justice court (small claims court) is for disputes where the dollar amount is less than $2,500.00. As such, paying for an arbitrator or mediator, who sometimes charge several hundred dollars an hour, might not be cost effective if the most the other party can be awarded is $2,500.00. If you are wishing to settle this matter out of court, perhaps simply making a offer to the other party to settle is probably your best bet.
