Why do Insurance Companies Deny Liability

There can be several reasons why the at-fault party’s insurance may deny liability even when it appears clear. Some common reasons include:

1. Disputed Facts: The insurance company may dispute the facts surrounding the accident, even if liability seems apparent to you. They may have a different interpretation of the events based on the available evidence or their investigation. They may argue that their insured was not at fault or that you shared some responsibility for the accident.

2. Lack of Sufficient Evidence: The insurance company may claim that there is insufficient evidence to establish their insured’s liability. They may argue that the evidence is inconclusive or that there are conflicting accounts of the accident.

3. Policy Exclusions: The insurance policy of the at-fault party may have specific exclusions or limitations that they believe apply to the situation. They may argue that the accident falls within one of these exclusions, thereby denying liability.

4. Pre-existing Conditions: The insurance company may assert that your injuries or damages are not a result of the accident but rather pre-existing conditions. They may argue that your injuries were not caused or aggravated by the accident and therefore deny liability for those specific damages.

5. Comparative Fault: In states with comparative fault rules, such as Colorado, the insurance company may argue that you were partially at fault for the accident. They may try to establish that your own actions or negligence contributed to the accident, reducing their insured’s liability or potentially denying your claim altogether.

6. Delay Tactics: In some cases, insurance companies may initially deny liability as a strategy to delay the claims process, hoping that you will become frustrated and settle for less than you deserve.

It’s important to note that insurance companies are for-profit entities, and their primary goal is to minimize payouts and protect their financial interests. If you believe liability is clear and the insurance company is denying it unjustifiably, you may need to take further action. Consult with a personal injury attorney who can review your case, assess the evidence, and help you pursue your claim or take legal action if necessary. An attorney can advocate for your rights and negotiate on your behalf to seek the compensation you deserve.