How Long Does Arbitration Take for a Car Accident?

If you’ve been involved in a car accident in Chicago and your claim is heading toward arbitration, it’s natural to wonder how long the process might take. While arbitration is often faster and less formal than a court trial, it can still be complex and time-consuming, especially if you’re unfamiliar with the legal process.

From filing the initial demand to preparing for the arbitration hearing, an attorney from Rosenfeld Injury Lawyers can guide you through every step of the arbitration process, helping you avoid costly delays, protect your rights, and potentially maximize your compensation. Book a free legal consultation today.

What Is Car Accident Arbitration?

Car accident arbitration is a form of alternative dispute resolution used to settle disputes without going to court. Instead of a judge or jury, a neutral third party—called an arbitrator—reviews the case and issues a decision based on the evidence and arguments presented.

Unlike a trial, arbitration is private, less formal, and typically faster. In Chicago, arbitration is often used when required by an insurance policy’s arbitration clause, especially in uninsured or underinsured motorist claims.

Depending on the terms of the agreement, the arbitrator’s decision may be binding (final and enforceable) or non-binding, allowing the parties to reject the outcome and pursue other options. Either way, the process is legally significant and requires preparation, strategy, and adherence to procedural rules.

Why Might a Car Accident Case Go to Arbitration in Chicago?

An auto accident case may go to arbitration for several reasons, especially when litigation would be costly or time-consuming. In Chicago, arbitration is most commonly triggered by an arbitration clause within an insurance policy, particularly in uninsured or underinsured motorist claims.

In other cases, the parties involved may agree to arbitration voluntarily to avoid a full legal proceeding. Arbitration offers privacy, flexibility, and typically a faster resolution compared to a trial.

Some insurance companies also include mandatory arbitration provisions in their policy language, meaning a personal injury claim must be resolved through arbitration rather than in court. This is especially true when the dispute is over the settlement amount rather than liability.

The Car Accident Arbitration Process in Chicago

The car accident arbitration process in Chicago typically follows a structured path. While less formal than a court, it still involves legal steps that must be properly executed to resolve the dispute. Below is how the arbitration process generally works.

Filing a Demand for Arbitration

The entire process begins when one party—usually the injured party or their attorney—files a formal demand with the arbitration body (such as AAA or JAMS), as required by the insurance company.

Selecting an Arbitrator

Both sides agree on a neutral arbitrator. If they can’t agree, the arbitration forum will appoint one.

Discovery Phase

Parties exchange information, including medical records, accident reports, and other documentation. This preparation phase is critical to presenting a strong case.

The Arbitration Hearing

This is a private session in which both parties are allowed to make opening statements, present evidence, have witnesses testify, and make legal arguments. It is similar to a court hearing, including closing statements, but less formal.

The Arbitration Award

After reviewing all materials, the arbitrator issues a written arbitration award, also referred to as the arbitrator’s decision.

Factors That Influence the Arbitration Agreement Timeline

Understanding the following variables can help set realistic expectations for the overall arbitration timeline:

• Case complexity: Disputes involving multiple vehicles, serious injuries, or unclear liability typically take longer.
• Availability of the arbitrator and parties: Scheduling conflicts can delay the arbitration hearing.
• Extent of discovery: The more documentation and evidence required, such as medical records or expert testimony, the longer the process.
• Arbitration forum rules: Forums like AAA or JAMS each have specific timelines and procedures that may impact the schedule.
• Delays or continuances: Either side may request extensions, especially if new evidence arises or additional time is needed for case preparation.

Average Arbitration Timeline for a Car Accident Claim in Chicago

In most cases, the arbitration timeline for a car insurance claim in Chicago ranges from 6 to 12 months, from the time the demand is filed to when the arbitrator’s decision is issued. However, timelines can vary based on the forum, case complexity, and how efficiently the parties prepare.

For straightforward disputes involving uninsured motorist coverage, the process may take less than six months. However, more complex cases involving multiple parties, extensive medical records, or disputed liability may take longer.

Binding vs. Non-Binding Arbitration in Car Accident Cases

In binding arbitration, the arbitrator’s decision is final and legally enforceable. Once the arbitrator’s award is issued, neither party can appeal the outcome except in rare cases of fraud or procedural misconduct. This form is commonly used when required by an insurance policy’s arbitration clause.

In non-binding arbitration, the decision is advisory. Either party can reject the outcome and choose to continue negotiating or proceed to a trial. While less common in auto accident cases, it may be used when arbitration is agreed upon voluntarily without a binding clause in place.

What Happens After the Arbitration Award?

If the arbitration was binding, the award is final and enforceable under Illinois law. The insurance company is legally obligated to pay the determined settlement amount, typically within 30 days. Unless there’s clear evidence of fraud or procedural error, neither party can appeal. The award becomes the final resolution of your personal injury claim.

If the arbitration was non-binding, either party can accept or reject the result. If rejected, the case may return to negotiation or proceed to court. A rejection doesn’t erase what occurred in arbitration, though—it can still influence later stages, including trial strategy or future settlement offers.

How a Car Accident Lawyer in Chicago Can Expedite the Arbitration Process

Working with a skilled personal injury lawyer in Chicago can significantly streamline the arbitration process. From the outset, an attorney ensures the case is properly prepared, minimizing delays that often result from incomplete documentation, procedural errors, or poor communication.

An experienced legal representative will:

• Efficiently manage the discovery phase, organizing medical records and other evidence.
• Communicate with the insurance company and arbitrator to keep the schedule on track.
• Prepare strong legal arguments and a strategy for the arbitration hearing.
• Reduce back-and-forth conversations with the opposing party and speed up resolution.

Since many insurance policies contain strict arbitration requirements and deadlines, having a personal injury attorney who understands local rules, arbitration forum procedures, and Illinois insurance law ensures compliance and efficiency.

Local Laws and Regulations Affecting Your Car Accident Claim

Several Illinois laws and Chicago-specific rules can directly impact your insurance claim, especially when it proceeds through arbitration.

Illinois Insurance Code has a statute (215 ILCS 5/143a) that governs uninsured and underinsured motorist coverage, which often includes mandatory binding arbitration clauses. If your dispute involves this type of coverage, arbitration may be required to resolve it.

Illinois follows a modified comparative negligence rule (735 ILCS 5/2-1116). If you’re found more than 50% at fault, you cannot recover damages for personal property damage, medical bills, etc. If you’re 50% or less at fault, your recovery is reduced proportionally. This can influence both arbitration outcomes and settlement amounts.

Traffic violations under the Chicago Municipal Code (e.g., red light or stop sign violations) can be used as evidence of negligence in a car accident arbitration, influencing how fault is assessed.

Why Choose Our Chicago Car Accident Law Firm

Our Chicago car accident attorneys have extensive experience representing clients in litigation and arbitration proceedings. Our legal team understands how to navigate the unique rules of arbitration forums, negotiate effectively with the insurance company, and present compelling evidence to support your case.

We’ve recovered over $450 million for injury victims across Illinois and are proud to bring that same level of strategy, preparation, and client care to every arbitration we handle. We offer a free case evaluation and work on a contingency fee basis, meaning clients owe us nothing unless we help them secure a fair settlement.

If you’re facing arbitration after a car accident, our firm is ready to protect your rights and fight for the compensation you deserve.

Consult a Car Accident Attorney Near You

If you’re involved in a car accident and your case is heading toward arbitration, don’t navigate the process alone. The right legal guidance can make all the difference in securing a fair settlement offer.

At Rosenfeld Injury Lawyers, we offer a free consultation to help you understand your rights and obligations under your insurance policy and what to expect during the arbitration process. Call (888) 424-5757 or fill out our online form.

All content undergoes thorough legal review by experienced attorneys, including Jonathan Rosenfeld. With 25 years of experience in personal injury law and over 100 years of combined legal expertise within our team, we ensure that every article is legally accurate, compliant, and reflects current legal standards.