Mediation
- The mediator helps both sides negotiate
- You decide whether to settle
- Confidential and informal, often done in a single day
- Can narrow the issues even without a deal
Claims process
Mediation vs arbitration
Both keep your claim out of a courtroom, but they work very differently. In mediation you keep the final say. In arbitration someone else decides.
The short answer
Mediation is a structured negotiation: a neutral mediator helps you and the insurer try to agree, but nothing is binding unless you both sign a settlement. Arbitration is a private hearing where an arbitrator hears evidence and makes a decision that is often binding, with very limited appeal rights. Mediation is common before injury trials. Arbitration often comes up in disputes with your own insurer.
At a glance
Arbitration
- The arbitrator hears evidence and decides
- Can be binding or non-binding
- More like a small private trial
- Appeal rights are usually very limited
| What differs | Mediation | Arbitration |
|---|---|---|
| Neutral's role | Helps you reach a deal | Decides the dispute |
| Who controls the outcome | You and the other side | The arbitrator |
| Formality | Flexible, mostly private discussions | Evidence, witnesses and arguments presented |
| Result | A settlement only if both sides sign | An award under the arbitration rules |
| Where you'll see it | Court-ordered or agreed before trial | Your own policy's UM/UIM or benefit disputes, some court programs |
| If it fails | You can still go to trial | Binding awards are hard to challenge |
What mediation day looks like
Most injury mediations take place after both sides have exchanged medical records and taken depositions. You, your lawyer, the insurer's lawyer and an adjuster meet with the mediator, in person or by video. After a short opening, each side usually sits in a separate room while the mediator moves between them with offers and counter-offers. The mediator will point out weaknesses in both cases. That's part of the process, not a sign they've taken sides.
Many US courts require mediation before a case can go to trial. In Ontario, mandatory mediation applies to many civil cases in Toronto, Ottawa and Windsor. Courts in England and Wales strongly encourage alternative dispute resolution, can penalise a party in costs for unreasonably refusing it, and can now order parties to try it.
Where arbitration comes up
- Your own policy. Many US uninsured and underinsured motorist coverages require disputes about fault or value to go to arbitration.
- No-fault benefit disputes. In some no-fault states, such as New York, disputes over PIP benefits can go to arbitration.
- Court programs. Some US courts send smaller cases to non-binding arbitration first. You can usually reject the result and ask for a trial, sometimes with cost consequences.
- Agreed arbitration. Sometimes both sides agree to arbitrate, occasionally with a high-low agreement that sets a minimum and maximum award in advance.
In Ontario, disputes over statutory accident benefits go to a tribunal, the Licence Appeal Tribunal, rather than arbitration or court.
Example
An injured driver claims under her own underinsured motorist coverage after the at-fault driver's insurance runs out. Her insurer disputes how much future care she needs. Her policy requires arbitration, so a single arbitrator hears from both sides' medical experts in a day-long hearing and issues a binding award three weeks later.
Common questions
Is mediation binding?
Not by itself. Nothing is binding until both sides sign a settlement agreement. Once signed, though, that agreement is usually as final as any other settlement.
Can I refuse arbitration?
It depends. If your insurance policy or a contract requires arbitration, you may have to use it. Court-ordered non-binding arbitration can usually be rejected in favour of trial, but check for cost penalties.
Which is better for an injured person, mediation or arbitration?
Mediation keeps control in your hands and you can walk away. Arbitration gives a quicker final decision but you take the risk of a low award with little chance to appeal. Many people try mediation first.
Do I need a lawyer at mediation?
You're not always required to have one, but the insurer will have a lawyer or experienced adjuster present. Going alone makes it harder to judge whether an offer is fair.
Last reviewed September 2026. General information, not legal advice.