Arbitration is a process where a neutral third party decides the outcome of a claim. Whether it's good or bad for you depends on your case.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. The purpose of this Regulation is to provide procedures for the expeditious and efficient settlement of first party property damage claims. ''insurers and other businesses like arbitration agreements because they keep conflicts out of courts, where disputes can turn costly, messy and public''). Most car insurance policies let you resolve your dispute through an outofcourt process called arbitration. Less formal than a courtroom jury trial.