Which method is used when the insured and insurance company disagree on the payout amount for uninsured motorist coverage?

In cases where the insured and the insurance company cannot agree on the payout amount for uninsured motorist coverage, arbitration is the method typically used to resolve such disputes. This process is legally binding and involves a neutral third party who hears both sides of the disagreement and makes a decision regarding the payout amount. Arbitration is often seen as a quicker and less costly alternative to litigation, allowing both parties to avoid the extended time and expense associated with a lawsuit.

This process is beneficial because it offers a structured environment for dispute resolution and is specifically designed to address disagreements in insurance claims. The final decision made through arbitration generally has to be accepted by both parties, which streamlines the result and can lead to a more amicable conclusion of the dispute.