Both Drivers Same Insurance Company

It happens more often than you might think: both drivers in a car accident carry policies from the same insurance company. If you and the at-fault driver both have the same insurance company, you may wonder whether that creates a conflict of interest, and whether the insurer will treat your claim fairly. Here is how industry practice and Illinois law shape what happens when both drivers have the same insurance company in an accident.

This article provides general legal information; consult a licensed Illinois attorney for advice specific to your situation.

The Core Concern: One Company, Two Opposing Interests

When the same insurance company insures both the at-fault driver and the injured party, a potential conflict of interest exists. The carrier has a financial stake in what it pays out on both sides of the claim. Left unchecked, this could create an incentive to minimize what it pays to the injured party, its own insured, in order to protect the at-fault driver’s policy. Insurers manage this conflict through internal separation procedures, and Illinois claims-handling law still requires the company to evaluate each claim fairly on its own merits.

Separate Adjusters: Standard Practice, Backed by Fair-Claims Rules

When one carrier ends up on both sides of the same crash, the standard industry response is to assign a different adjuster to each party and keep two separate claim files, an internal “ethical wall.” Most major insurers follow this procedure as a matter of company policy. It is not spelled out in a specific Illinois statute, so you should confirm early on that your claim and the at-fault driver’s claim actually have different adjusters and different claim numbers.

What Illinois law does impose is a duty of fair handling on each file. The Department of Insurance’s claims regulations (50 Ill. Adm. Code Part 919) require insurers to document each claim file thoroughly, affirm or deny liability within a reasonable time, and explain any denial or reduced settlement in writing, and those duties apply to your first-party claim and the liability claim independently, even though one company holds both files.

What the Firewall Means in Practice

In practical terms, the two-adjuster setup means the claim remains adversarial even though both parties share a carrier. The adjuster assigned to the at-fault driver is working on behalf of that driver’s policy. The adjuster assigned to your claim has a different role. These adjusters are not supposed to share information about your case with each other.

The insurer’s internal file on the at-fault driver’s claim, including any admissions, recorded statements, or internal assessments of liability, should not inform or influence how your claim is evaluated. Handling insurance claims after a car accident is already complicated, and this separation exists precisely to prevent your position from being weakened by information the other side shared with the same company.

Unfair Claims Practices Prohibitions Still Apply

The fact that a single carrier is involved on both sides does not reduce its obligations under Illinois law. Under 215 ILCS 5/154.6, an insurer is prohibited from engaging in improper claims practices regardless of which of its insureds is at fault. This includes misrepresenting policy terms, failing to acknowledge communications promptly, and refusing to pay claims without a reasonable investigation. These standards apply to each adjuster handling each side of the claim independently. If the carrier’s handling of your claim falls short of these requirements, that conduct may be subject to review by the Illinois Department of Insurance.

Should You Be More Cautious in This Situation?

Yes, a little extra caution costs you nothing here.

First, you are not required to give a recorded statement to any adjuster, including one assigned to your own first-party claim, without first speaking to an attorney. Second, any settlement offer you receive should be evaluated against the full extent of your documented losses, not just the initial figure presented. Third, if you learn that one adjuster is handling both sides of the claim, or that the two adjusters are coordinating, that is a serious conflict-of-interest problem, raise it with the company in writing and consider a complaint to the Illinois Department of Insurance. An attorney can monitor the claims process and identify any handling problems early.

Talk to a Chicago Attorney, Free Consultation

If you and the at-fault driver share the same insurance company, Phillips Law Offices can help you understand your rights under Illinois law and hold the insurer to fair claims-handling standards on your file. Call us at (312) 346-4262 or visit our contact page to schedule a free consultation. We handle car accident cases throughout Chicago and Cook County.

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This article is general information about Illinois law, not legal advice, and reading it does not create an attorney-client relationship. Illinois law changes; confirm anything you intend to rely on with a licensed Illinois attorney.