When is comparative negligence applied in auto insurance claims?

Comparative negligence is applied in auto insurance claims when both parties involved in the accident are found to share some degree of fault. This legal principle allows for the allocation of liability based on the percentage of fault attributed to each party. For instance, if one driver is found to be 70% at fault for an accident and the other driver is 30% at fault, damages awarded to the injured party would be reduced by their own percentage of fault. This ensures a fairer assessment of damages, as it recognizes that multiple factors can contribute to an accident.

The other options do not align with the application of comparative negligence. Damages exceeding policy limits pertains to coverage issues rather than liability assessment. Insufficient evidence pertains to the ability to prove fault but does not directly relate to the concept of comparative negligence. Lastly, while a policyholder admitting fault can influence claims, comparative negligence is specifically concerned with the apportionment of liability when both parties are involved in the incident, not solely based on admissions of fault.