What Happens If the Other Driver Lies About the Accident?

After an accident, most drivers expect the claims process to be straightforward. Each party will call their own insurance company and file a claim. Both drivers will be honest and says exactly what happened. The driver that admitted they were on fault on scene will tell their insurance company exactly what happened and that they were at fault.

But sometimes the other driver tells a different version of what happened.

When this occurs, insurance companies must determine which account of the accident is most accurate. This process is known as a liability investigation. The problem with liability investigations is that they may not always lead to the result you expect. It is however, always good to be aware of the investigation process so you position yourself in the best way possible in cases where you find yourself embroiled in a liability dispute.

How Insurance Companies Investigate Conflicting Stories

Once there is a dispute between driver statements, the adjusters will turn to additional evidence to evaluate the claim.

This may include:

• vehicle damage patterns
• photos from the scene
• police reports
• witness statements
• video footage
• accident diagrams

The goal is to reconstruct the accident as accurately as possible and to be as fair as possible when assigning liability.  Any additional evidence that can provide context to the accident is always helpful throughout the investigation process. Ensure that you provide your insurance company with any additional evidence you have.

Why Vehicle Damage Matters

One of the key pieces of evidence that adjusters will review when conducting a liability investigation is vehicle damage. Vehicle damage can often support or contradict a driver’s version of events.

For example:

• rear-end damage may suggest one driver was following too closely
• side impact damage may indicate a lane change or intersection conflict

Adjusters compare the physical evidence to the statements provided. Please do keep in mind that often, photos alone will not be enough to support one version of liability over the other.  An example of this is side damage. Side damage to both vehicles indicates that there was a side to side impact, however it does not establish which party moved into which party’s lane and caused the accident.  To ensure that you are putting your best foot forward and presenting as much evidence as possible, make sure that you take photos from close up and far away of the damage to your vehicle and of the other party’s vehicle if you are able.

Witnesses Can Make a Big Difference

Independent witnesses often play an important role in disputed claims. Somone who saw the accident unfold may provide details that help clarify what happened. This is why gathering witness information at the scene can be extremely valuable. See if there are any witnesses around that are able to provide their contact information. Both insurance companies will want to contact the witness to have an independent account of the accident.

What Happens If Fault Cannot Be Proven

In some situations, there is not enough evidence to determine exactly what happened. This is especially the case where there are no independent witnesses, police did not conduct an investigation and write a report, or where there is no video evidence.

When this occurs, each insurance company accepts their driver’s version of the events and finalizes liability accordingly. Each driver will typically have to handle repairs under their own policy coverage and pay their deductible.

This outcome is called word versus word.

These claims will likely still continue through the subrogation process and if the insurance companies determine that they will would like to proceed, the arbitration process. However, there is still no guarantee that liability will be finalized in favor of either party.

The Bottom Line

If the other driver lies about the accident, insurance companies will investigate the evidence to determine what likely happened. Photos, witnesses, and documentation from the scene can play a critical role in resolving these disputes. Providing clear information to your insurance adjuster helps them evaluate the claim more effectively.

© 2026 by The Anonymous Adjuster.