What Happens if an Insurance Company Denies Liability?

If an insurance company denies liability, it is refusing to accept that its policyholder caused your accident, which means it will not pay your claim unless you can prove otherwise. A denial can feel final, but it is often only the insurer’s opening position. At Douglas Jennings Law Firm, LLC, our South Carolina personal injury attorneys are available to advocate for fair compensation on your behalf.

Why Do Insurance Companies Deny Liability?

Insurance companies most often deny liability by claiming their policyholder was not at fault for the accident. An insurer may argue that you caused the crash, that the evidence is unclear, or that your injuries stem from a pre-existing condition rather than the accident itself. Some denials rely on policy exclusions, lapsed coverage, or a missed reporting deadline. Sometimes, the insurer is simply testing whether you will give up.

Does South Carolina’s Fault System Affect a Denial?

Yes, South Carolina’s at-fault insurance system and comparative negligence rules play a major role in liability disputes. As an at-fault state, South Carolina holds the responsible driver and their insurer liable for damages. Under the state’s modified comparative negligence rule, you can still recover compensation as long as your share of fault is not greater than the other party’s. However, your award is reduced by your percentage of fault. For this reason, insurers will often try to shift blame onto you.

What Should You Do After Receiving a Denial Letter?

After receiving a denial letter, you should ask the insurer to explain its reasoning in writing and avoid giving any further recorded statements. Then gather evidence that challenges the insurer’s position, such as police reports, photographs, witness statements, medical records, and video footage. If the other driver turns out to be uninsured, or their insurer denies coverage under the policy, you may also be able to file a claim under your own uninsured motorist coverage, which South Carolina requires on auto policies.

Can You Still Recover Compensation After a Denial?

Yes, you can still recover compensation after a denial through continued negotiation, an internal appeal, or a personal injury lawsuit. An attorney can investigate the accident, consult experts, and present evidence that forces the insurer to reconsider its decision. Filing a lawsuit often prompts more serious settlement talks. When an insurer handles a claim unreasonably, additional legal remedies may be available in certain situations.

Helping You Adhere to Legal Deadlines

In South Carolina, you generally have three years from the date of your injury to file a personal injury lawsuit. Claims against government entities fall under the South Carolina Tort Claims Act, which typically allows only two years and involves specific procedural requirements. Ongoing negotiations with an insurance company do not pause these deadlines. Our legal team tracks every deadline, so your claim stays protected.

Speak with Our South Carolina Personal Injury Attorneys at Your Earliest Opportunity

An insurance company’s denial does not have to be the final word on your claim. At Douglas Jennings Law Firm, LLC, our South Carolina personal injury lawyers know how to challenge unfair denials and hold insurers accountable. To arrange your free consultation with a member of our legal team, contact us online or by phone at (843) 479-2865.