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How State Auto Insurance Laws Differ

Insurance laws and policies are regulated individually by each state that may require drivers to carry a minimum amount of insurance. Some states and insurance companies may require that any disputes must be arbitrated instead of, or before, filing a lawsuit. Arbitration is a process to resolve disputes. It is similar to a lawsuit, but held in an informal setting. Arbitrators are usually knowledgeable practicing attorneys who look at the evidence of the dispute and decide who is right, who is wrong, whether or not any damages should be awarded and if so, how much. They act in a way that is similar to a judge, but again, in a less formal setting.

If either party does not agree with the arbitrator’s decision, a lawsuit can be filed in a traditional court of law where the matter will be decided by a judge or jury.



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