Insurance arbitration relies upon an arbitrator (the neutral third party) to make an appropriate decision based on the specifics of a claim or case. Arbitration is the process of using a third party to settle a dispute instead of taking the case to court.When a disagreement over a claim arises, arbitration is often utilized to resolve the conflict without having to go through the litigation process. When a car accident claim goes to arbitration, this means the parties involved are trying to seek a resolution without having to involve the court. What is Arbitration?