Auto insurance companies inevitably face unfair liability cases from their policyholders. The insurance company must mount a vigorous defense to limit its financial exposure in these situations.
People who engage in risky behavior sometimes use liability claims to pay for their mistakes. Here are three potential defenses that an auto insurance company may use in a liability case.
1. Comparative negligence
The first defense is the “comparative negligence” defense. This defense argues that the policyholder was not solely responsible for the accident and that the plaintiff also played a role in causing the accident. By arguing that the plaintiff was also negligent, the insurance company can reduce the damages they are responsible for paying.
2. Assumption of risk
The second defense is the “assumption of risk” defense. This defense argues that the policyholder and the plaintiff knew and understood the risks involved in the activity that led to the accident and voluntarily assumed those risks. This defense is valid when the policyholder and the plaintiff engage in risky activities, such as racing or off-roading.
3. Statute of limitations
The third defense is the “statute of limitations” defense. This defense argues that the plaintiff waited too long to file their claim and that the statute of limitations now bars their lawsuit. The statute of limitations is a legal time limit for a person to file a claim. According to the New York Courts, the statute of limitations for liability and car accidents is three years.
It is important to note that these defenses are legal arguments that are often complex and depend on the facts of the specific case. However, a solid legal strategy is essential for convincing a judge or jury that the defendant is not responsible for all the damages.