What If Fault Cannot Be Agreed Upon

When an auto accident results from improper backing, determining fault is typically relatively cut and dry. The driver who was backing up is virtually always at fault, so it’s rare for an insurer to contest the determination of fault in such circumstances. However, in some situations, assigning blame for a back-up collision is far more complicated. In fact, the circumstances may be so ambiguous in some cases that each insurance company insists the accident was wholly the fault of the other driver. So what happens if car insurers disagree on who was at fault for an accident?

If all parties involved in the accident have car insurance coverage with liability protection, then their insurers will enter arbitration if they cannot come to a consensus on who was at fault. Arbitration avoids the hassle of bringing the dispute to court. Each insurer will present its case in front of an impartial arbitrator, and the arbitrator will issue a final decision that is binding. Arbitration might involve showing police reports, providing driver and passenger accounts of the accident, and discussing the accounts of any witnesses.

On the other hand, if one party is uninsured and cannot agree with the other party’s insurer as to who was at fault, then small claims court is the most likely solution. The uninsured party would have to file a lawsuit against the other party’s insurance company. The judge would then decide if the plaintiff should be awarded damages and, if so, how much.