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. Understanding how Illinois law addresses this situation can help you protect your rights 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 unregulated, 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. Illinois law specifically addresses this concern through regulatory requirements that apply whenever a single carrier finds itself on both sides of an adverse claim.
Illinois Requires Separate Adjusters for Each Party
Under 50 Ill. Adm. Code Part 919, Illinois insurance regulations require that when the same carrier is handling adverse claims — meaning claims where two of its own insureds are on opposite sides of the same loss — it must assign separate adjusters to each party. The adjuster handling the at-fault driver’s liability claim is required to be different from the adjuster handling your first-party claim. This is a structural firewall built into the claims process by regulation. The purpose is to prevent one adjuster from having access to information about both sides of the dispute simultaneously, which could compromise either party’s position.
What the Firewall Means in Practice
In practical terms, the separate-adjuster requirement 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 first-party 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 — is not supposed to inform or influence how your claim is evaluated. Handling insurance claims after a car accident is already complicated, and this structural 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 unfair 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 valid 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?
Illinois regulations provide meaningful structural protections, but those protections work best when you know they exist and exercise your rights accordingly. A few practical points are worth keeping in mind. 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 believe the adjuster handling your claim is coordinating with the adjuster on the other side, that is a compliance issue that warrants immediate attention. 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 make sure the regulatory protections are actually being applied to your claim. 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.
