Arbitration of an Uninsured Motorist Claim in California

Uninsured motorist insurance is an excellent benefit to have. According to some statistics, about 17% of drivers in California are uninsured—one of the highest rates in the nation. Because California follows an “at fault” system for car accidents, getting hit by an uninsured motorist is potentially disastrous. The other driver is to blame, but they have no insurance and no way to pay.

What can you do? Can you receive compensation?

Fortunately, this is where uninsured motorist insurance (UM) coverage comes in. If the at-fault driver is uninsured, then you can use your UM coverage for benefits. You will negotiate with your UM insurer for compensation to cover medical care, lost income, and other damages.

Although you pay for UM coverage, it is still fault-based insurance. Consequently, you can’t be to blame for the wreck if you hope to use this insurance. Where there are doubts about liability, you might end up in arbitration. In this article, our Riverside car accident lawyer looks at key considerations when it comes to UM insurance and an uninsured motorist claim.

Do You Have UM Coverage?

Most California drivers carry uninsured motorist insurance. It is included as part of your mandatory liability coverage. California requires that drivers have liability insurance to register a car, and insurers must offer UM coverage with it.

However, California law allows motorists to reject UM coverage in writing. Fortunately, few drivers do. That’s a good thing, too, because you will definitely breathe a sigh of relief after an accident with an uninsured driver if you have a UM policy.

Why You Might Arbitrate an Uninsured Motorist Claim

Arbitration is a way of resolving a legal dispute outside the court system. Many insurance contracts contain an arbitration clause. It states that you agree to arbitrate any legal dispute with the insurer.

This type of clause is enforceable, even though you have agreed ahead of time.

If your contract doesn’t contain an arbitration clause, you might still end up in arbitration if you and the insurance company agree to it.

Arbitration resolves legal or factual disputes. Most disagreements about car accidents involve fault.

Your UM insurer might believe you share most of the blame for the crash.

For example, you might have crashed in an intersection. The police report states you ran a red light.

Even if that’s not true, your UM insurer might cite this language to deny a claim. Arbitration is one way to resolve the dispute.

Another disputed issue in some car accident cases is the value of your uninsured motorist claim​. Your UM insurer might agree you are not at fault for the collision, but they don’t believe you are as injured as you claim. As an example, you could have suffered a concussion, which causes major symptoms. Your insurer might allege that you should have recovered in a couple of weeks. They want to pay only a couple hundred for your pain and suffering.

These disputes might end up in arbitration. Insurance companies like arbitration of uninsured motorist claims because it is often faster and cheaper. It is also private. You can reach a result without a lengthy trial in court, which might last for more than a year.

What Happens at Arbitration

Arbitration is like a trial. Each side will present evidence to the arbitrator, who will decide the legal dispute. If the dispute involves fault, then your witnesses will usually describe how the accident happened. You can also rely on other evidence, such as physical evidence or any video of the accident.

By contrast, if the dispute involves your injuries, we usually present medical evidence. Your physician could testify and offer expert testimony about your prognosis and pain. You will likely also testify as to how your injuries have impaired you.

Arbitration is usually less formal than a trial, which should speed things along. Still, your lawyer gets to cross-examine any witnesses, and the arbitrator might ask questions, too. After all evidence is submitted, the arbitrator will make a final decision.

Motorists benefit from having a lawyer in this process. Although less formal than a trial, arbitration still requires skill. A lawyer knows what evidence is useful in arbitration and how to prove fault.

Deadlines to Request Arbitration

At The JLF Firm, we try to settle a claim for fair compensation first. Where that’s impossible, though, we can move on to arbitration.

California law requires that you file for arbitration within 5 years of the first demand for compensation. Suppose you are injured in a crash with an uninsured driver on July 1, 2025. You make a demand for compensation from your UM insurer on September 1, 2025. You must file a demand for arbitration by September 1, 2030; otherwise, you will lose the ability to seek arbitration.

The deadlines are vital. You can lose an otherwise valid insurance claim if you wait too long. Some people are completely unaware of these deadlines.

Our lawyers know how to seek compensation for an uninsured motorist claim. We will first try to negotiate a meaningful settlement, but we aren’t afraid to take your case to arbitration. If you never signed an arbitration agreement, we might also file a lawsuit in court.

Speak with a Car Accident Lawyer at Our Firm

The JLF Firm can handle any uninsured motorist claim from start to finish. We know how to gather the necessary evidence to use and start conversations with your UM insurer. Some of them are more eager to settle than others. We might also participate in mediation to nudge the dispute to a resolution.

When push comes to shove, we can also handle your arbitration in a professional manner. No one should go into arbitration blind or without a lawyer. That’s a good way of losing your right to compensation. You can rest assured that your insurer will have a powerful law firm representing them. These firms often appear in front of some arbitrators dozens of times each year. Get the professional legal help you need to win a car accident case.