Auto insurance claim defense can occur when the insurance company believes it is not responsible for payment for the injured party’s damages. In this instance, the insurance company is trying to eliminate or reduce the amount of compensation it will pay to a claimant. While every insurance company is different, most defend against claims in a similar manner.
Deny Coverage
Regardless of whether the insurance company is the other party’s or your own, it might try to deny coverage for the accident. Typically, this argument arises when the accident involved alcohol or drug use or extreme recklessness. In these instances, the insurance company will try to rely on clauses in the contract that show it is not responsible for accidents involving these issues.
Deny Causation
Many insurance companies will try to deny either that 1) the accident caused the injury or damages or that 2) the party accused of causing the accident is innocent. The latter argument usually arises when the insurance company is defending a client against accusations of guilt.
Denying causation is a way for the insurance company to eliminate its responsibility. If the accused party is proven innocent, the insurance company will be off the hook for providing compensation to the injured party. If the injuries and accident are not related, the accusing party has no cause of action against the insurance company and the company will not need to pay.
Prove Contributory Negligence
Another tactic many insurance companies take is to demonstrate that the injured party is also to blame for the accident. In many states, the amount of compensation an injured party will receive is reduced by the portion of his responsibility. For example, an injured party that is 20% at fault for the accident will have his $100,000 reward reduced by $20,000. In this way the insurance company can reduce the amount of money it must pay to the injured party. Furthermore, in some states an injured party that is more than 50% responsible will not be entitled to any compensation.
Prove the Presence of Alternative Compensation
In combination with other arguments, an insurance company may demonstrate that the injured party is receiving compensation from other insurers or third parties. These amounts would then be deduced from any award the injured party received.
Getting Legal Help
If an insurance company is defending itself against your claims, consider obtaining legal representation. A lawyer will review the facts of your case and prepare arguments to refute the company’s defense.
