What happens when the same insurance company covers both drivers and denies both claims because it says fault cannot be determined?

Why the Same Insurer May Deny Both Liability Claims

When both drivers have policies with the same insurance company, the company still evaluates each driver’s claim under the applicable policy and the evidence. Sharing an insurer does not mean the drivers share the same legal position, and it does not give either driver an automatic advantage.

If each driver blames the other and the available accounts conflict, the insurer may conclude that it cannot establish liability. That is an insurance claim decision, not a court ruling. The insurer does not have the final authority to determine legal fault merely because it issued both policies.

For an injury or third-party property claim, the person seeking payment generally must show that the other driver acted negligently and that this conduct caused the injuries or damage. Relevant evidence may include traffic-control information, vehicle positions, points of impact, photographs, witness accounts, dispatch recordings, video, physical measurements, and statements made shortly after the collision.

An Amended Police Report Can Help, but It May Not Resolve Fault

An amended crash report may support a request for reconsideration, particularly if it corrects a material fact or adds information that was missing from the original report. It is still only one part of the evidence.

A crash report is a useful starting point, but it may be incomplete or based largely on what the drivers said at the scene. An officer may not have witnessed the collision, and the report may not address every photograph, dispatch record, witness statement, or inconsistency. The stronger approach is to organize all available evidence and explain how the pieces fit together rather than relying only on the report’s conclusion.

Because physical evidence can disappear and memories can fade, preserve the original files whenever possible. Avoid editing photographs or saving only screenshots. Record where each item came from and when it was obtained.

North Carolina’s Contributory Negligence Rule Matters

North Carolina permits contributory negligence as a defense. If the defense proves that the injured person’s own negligence helped cause the collision, that issue can create serious difficulties for the claim. Under N.C. Gen. Stat. § 1-139, the party raising contributory negligence generally has the burden of proving that defense.

This means the evidence should address two questions: what the other driver did wrong and why the injured driver’s conduct was reasonable. For example, photographs showing vehicle location may be more persuasive when considered with road markings, traffic controls, dispatch timing, damage patterns, and consistent witness statements.

Liability Coverage and Your Own Collision Coverage Are Different

It is important to identify exactly which claims were denied. A liability claim against the other driver’s coverage depends on proving that driver’s legal responsibility. A claim under your own collision coverage is a first-party policy claim and may not depend on proving that the other driver was at fault, although deductibles, exclusions, policy language, and other coverage terms still matter.

If the insurer denied only the liability claim, ask whether a collision claim was opened under your own policy. If it also denied a first-party property claim, request a written explanation identifying the policy language, facts, and reasoning supporting that decision. North Carolina’s claim-practices statute, N.C. Gen. Stat. § 58-63-15, sets standards concerning reasonable claim investigations and explanations for certain claim decisions. Whether a particular handling problem creates a legal remedy requires a fact-specific review.

Do not assume that coverage for the vehicle automatically includes damaged personal belongings. Save the applicable declarations pages, full policy, denial letters, photographs, receipts, and any list of damaged items so the available coverage can be evaluated without guessing about policy terms.

Practical Steps After an “Unable to Determine Fault” Denial

1. Request the decision in writing. Ask the adjuster to identify the evidence considered, the disputed facts, and the specific reason each claim was denied.
2. Confirm that all evidence was reviewed. Provide the amended report, dispatch records, original photographs, witness contact information, diagrams, recordings, and any prior inconsistent statements in an organized submission.
3. Ask for supervisory reconsideration. Explain what the new or overlooked evidence establishes instead of simply stating that the decision is unfair.
4. Separate the claims. Track the bodily injury claim, vehicle-damage claim, damaged-belongings claim, and any first-party collision claim separately. Different documents, coverage provisions, and representation arrangements may apply.
5. Preserve proof of property loss. Keep repair estimates, towing and storage records, photographs, ownership documents, pre-crash vehicle information, receipts, and evidence of the condition and value of damaged belongings.
6. Review deadlines promptly. Insurer discussions and reconsideration requests do not automatically extend the time to file a lawsuit.

Do Not Let Reconsideration Discussions Consume the Filing Period

N.C. Gen. Stat. § 1-52 provides a three-year period for many North Carolina actions involving personal injury or damage to personal property, although exceptions and different rules may apply. The correct deadline depends on the claim and facts.

A pending claim, supervisor review, or ongoing exchange with an adjuster generally does not stop that period from running. If the dispute cannot be resolved through the claim process, a lawsuit against the other driver may be needed to have fault determined through the civil justice system. In a typical negligence action, the insurer’s denial is not treated as a binding ruling.

Handling Property Damage Separately from the Injury Claim

Vehicle damage and damaged belongings should not be overlooked merely because legal representation currently focuses on bodily injury. The representation agreement should be reviewed to confirm what is and is not included. Separate assistance may be needed to address repairs, a possible total loss, storage charges, collision coverage, a deductible, or proof of the value of personal property.

A property-damage resolution does not automatically resolve an injury claim. North Carolina law states that settling property damage from a motor vehicle collision does not by itself release the bodily injury claim unless a properly executed written agreement specifically provides for a broader settlement. Review any release carefully before signing. The rule appears in N.C. Gen. Stat. § 1-540.2.

How This Applies to the Reported Situation

Here, the amended police report, dispatch records, photographs, and alleged inconsistencies in the other driver’s account may support a focused request for reconsideration. Their usefulness will depend on what each item actually establishes, whether the records are complete, and whether they address the insurer’s stated reason for finding fault unresolved.

The substantial vehicle damage and damaged belongings should be documented and handled on their own track. Because current representation focuses on the injury claim, the individual should obtain written clarification about whether vehicle and personal-property issues are included. If they are not, separate review may help identify available first-party coverage, preserve the property claim, and prevent important deadlines or evidence from being missed.