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True. They are not witnesses but statements from them can still be used by the insurance company to assign blame. A police officer should always get a statement from passengers. If for any reason to ascertain who was actaully driving the car. Sometimes it's obvious, other times it's not.

Even if a case went to trial a passengers statement as to what occurred would be entered into evidence. It would be argued that they are bias but nonetheless there account of what occurred will be explored.

If it's just the insurance company conducting the investigation then statements from anyone who was on scene or witnessed the accident will be entertained.
 
I would talk to the insurance carriers main head quarters and appeal their decision. They always find away to pay less! trust me Ive been there. If you feel there decision is to save money I would file a law suit. This way you have a nonbiased decision. I would consult an attorney for guidance. Sounds like the insurance company was allstate....Someday I will get even for the **** they pull..
 
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