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EmailMost auto insurance policies include a provision that allows the insurance company and the insured to arbitrate first party disputes. However, attempts to compel arbitration under auto insurance contracts are forbidden in Nevada:
NRS 690B.017 provides:
NRS 690B.017 Provisions for arbitration not binding. No provision for arbitration contained in an automobile liability or motor vehicle liability insurance policy delivered, issued for delivery or renewed in this State is binding upon the named insured or any other person who makes a claim under the policy.
Whether voluntary binding arbitration under the policy is the best solution to resolving the dispute will depend on the facts of the particular claim. Factors to consider might include the policy limit, the company’s valuation of the claim and the comparative costs of litigation.
Another important factor to consider is the risk of “bad faith” exposure. If that is a threat, evidence of reasonableness in the claims handling process will be examined by that trier of fact. While the company cannot force arbitration, the offer of arbitration to an insured can be evidence that supports the argument that the company was trying its best to avoid costly litigation. If you have questions about arbitration under the policy and whether it is a good option in your case, please email mike@mcmillslaw.com. We will be glad to discuss your claim with you.
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