Why did the insurance company deny liability when the police report appears to support my claim?

Why a Favorable Police Report May Not Control the Insurance Decision

A police crash report is important evidence, but it does not automatically establish civil liability. The investigating officer may record driver statements, witness information, road conditions, a diagram, apparent contributing circumstances, and whether a traffic violation was suspected. The officer may not have seen the collision happen, however, and may have prepared the report using limited information available at the scene.

Under N.C. Gen. Stat. § 20-166.1, law enforcement investigates and prepares a written report for a reportable accident. The statute allows certain officer reports to be used as evidence when permitted by the rules of evidence, but it does not require an insurer to adopt the officer's conclusions.

An insurer normally performs a separate liability investigation. Its adjuster may speak with the insured driver, obtain other witness accounts, review photographs or video, inspect vehicle damage, and compare the available evidence with North Carolina traffic laws. That process can produce a different conclusion from the one a claimant draws from the police report.

Common Reasons for a Liability Denial

The denial may be based on one or more of the following:

• The insured driver gave a different account. The other driver may dispute the sequence of events, the traffic signal, vehicle positions, speed, or right of way.
• The report contains codes rather than a final legal decision. Crash reports often use diagrams and coded entries. A mark that appears favorable may identify an apparent circumstance without resolving every element of negligence and causation.
• The officer did not interview every available person. A driver may have been receiving medical attention, a witness may have left, or relevant video may not have been located before the report was completed.
• The insurer claims the physical evidence supports another version. It may rely on points of impact, photographs, debris locations, vehicle damage, or roadway markings.
• The insurer alleges contributory negligence. It may argue that the injured person failed to keep a proper lookout, drove too fast for conditions, made an unsafe movement, or otherwise helped cause the collision.
• The investigation may be incomplete. The adjuster may not have received a supplemental report, witness statement, recording, photograph, or other important material.

A denial also may use broad wording such as “our insured was not responsible” without identifying the evidence or legal theory behind that conclusion. Obtaining the precise reason matters because the response to a conflicting-witness denial will differ from the response to a contributory-negligence argument.

North Carolina's Contributory Negligence Rule

North Carolina permits contributory negligence as a defense. If the defense proves that the injured person's own negligence helped cause the injury, the rule can create serious problems for the personal injury claim. Evidence should therefore address both what the other driver did wrong and why the claimant acted reasonably.

Under N.C. Gen. Stat. § 1-139, the party asserting contributory negligence generally has the burden of proving that defense. An insurer can still raise the issue during claim negotiations, even if the police report does not blame the claimant.

How to Evaluate and Respond to the Denial

A useful first step is to request the insurer's liability position in writing. Ask it to identify the facts supporting the denial and whether it is relying on a conflicting statement, contributory negligence, insufficient evidence, or another ground. N.C. Gen. Stat. § 58-63-15 lists certain unfair claim settlement practices, including failing to promptly provide a reasonable explanation of the policy, facts, or law used to deny a claim. Whether that statute applies to particular conduct requires a review of the full circumstances.

The investigation should not stop with the face of the crash report. Check whether the officer prepared a supplemental report and whether the agency has additional material, such as field notes, photographs, recordings, witness information, dispatch records, or 911 communications. Evidence can disappear quickly as video is overwritten, vehicles are repaired, roadway marks fade, and memories become less clear.

Information to Gather and Preserve

• The complete police report, report key, and any supplemental report
• The written denial and all letters, emails, or claim notes available from the insurer
• Names and contact information for witnesses
• Scene, vehicle, and property-damage photographs or video
• Dash-camera, surveillance, traffic-camera, or doorbell footage, if available
• Repair estimates, vehicle inspection records, and photographs taken before repairs
• Medical records, bills, and visit summaries connecting the reported injuries to the accident
• A dated account of what happened, including weather, traffic controls, visibility, and vehicle movements

Do not assume that continued discussions with an adjuster preserve the right to file a lawsuit. Many North Carolina personal injury actions are subject to a three-year filing period, although a different deadline may apply depending on the claim and parties involved. Insurance negotiations do not automatically extend the applicable court deadline.

How This Applies to the Reported Liability Denial

Here, an attorney represents the claimant, the insurer denied liability, and the stated reason appears unclear or inconsistent with the police report. The next issue is not simply whether the report favors the claimant. It is whether the insurer considered the same evidence, whether it possesses information not shown in the report, and what specific factual or legal theory supports its position.

Counsel can request a clearer explanation, compare the denial with the report and underlying evidence, and identify gaps in the insurer's investigation. If the denial rests on contributory negligence, the evidence should be organized to address the claimant's conduct as well as the other driver's actions. If additional evidence contradicts the denial, it can be submitted with a focused request for reconsideration, without assuming the insurer must reverse its decision.