Auto insurance arbitration success relies on the applicant's ability to prove both negligence and damages.
Proof of damages and verification of the paid loss must include an appraisal by a reputable source. Damages can include the physical damages to the vehicle along with towing, rental and/or storage paid.
Proving negligence is often much more difficult than proving damages as the loss facts reported are often subjective and without the support of a police report or witness statement.
In every case, it is incumbent on the applicant to prove both damages and negligence, and a signed or recorded statement from the driver of the applicant vehicle is imperative in most cases, but absolutely so in instances where no police were called to the scene.
Contentions should contain three elements of liability:
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- Duty owed. Well-written contentions for collision losses should include citations of local vehicle and traffic law and state-specific negligence rules, because this information alerts the arbitrator to the reasonable standard of care in a particular jurisdiction.
- Duty breached. To establish liability on the part of the adverse party, contentions should clearly state how the breach of the duty owed by the respondent caused the applicant to sustain damages. Evidence such as witness statements, police reports, driver statements, scene photos, maps, diagrams and applicable reports relating to weather and road conditions can support the contention of a breach in duty owed.
- Proximate cause. Lastly, it must be proven that the direct or immediate result of the breach of duty or negligence of the adverse party caused the loss and the resulting damages.
Evidence must be submitted to support any contentions regarding liability. Each contention must be supported by facts. Listing the evidence in the order of the contentions makes it easier for the arbitrator to review.
Citing specific statutes relative to the case and the jurisdiction alerts the arbitrator as to why you are submitting the claim to arbitration and what issues need to be considered in the decision.
Finally, be specific regarding what you want the arbitrator to award.
Kathleen J. Smith, CSPR, is managing director of Holbrook, N.Y.-based subrogation recovery services company Spartan Recoveries LLC. Donna Geraghty is the business development manager at Spartan Recoveries.
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