While exchanging insurance information after a car accident, you realize that the other driver is insured by the same company as you.
Could this affect how the claims are handled? Is this a blessing or a curse?
Fortunately, the claims process doesn’t really change much in this situation. The difference is that the insurance company assigns two separate adjusters to the claim, one for each driver.
The bad news is that the process may get messy and could potentially delay your compensation, as the insurer must avoid any conflict of interest.
To navigate the complexities of a shared-insurer accident case, we recommend getting a free consultation with an expert car accident lawyer from No Bull Law. They can help with your claim and guide you through the next steps.
That being said, we’ll explain how to file a car accident claim in these cases and the advantages and disadvantages of having a shared insurer.
When the same insurer covers you and the other driver, you'll need to follow the same process as you would when filing a claim against another insurance provider. However, the main difference lies in how you report the accident and how the insurance company manages the claim.
With that in mind, here’s how to navigate the claims process:
1. Gather Information at the Scene
Ideally, you should have already taken photos of the accident scene, documenting the conditions, debris, and property damage. You should also seek out witnesses and get their statements. However, you wouldn’t necessarily need to interview witnesses if police arrive at the scene.
Since you have to report the accident to the insurer, you should note the other driver’s contact information, license plate number, vehicle information, and insurance policy number.
2. Consult a Lawyer
Before contacting the insurance company, you should speak to a car accident lawyer. They’ll help you protect your rights and ensure you don’t make any mistakes, such as admitting fault or providing statements that could negatively impact your claim. They can also make sure that the insurance company is treating you fairly.
Need a Texas car accident lawyer?
You can schedule a free consultation call with the attorneys at No Bull Law. We can guide you through the next steps.
3. Report the Accident to Your Insurance Agent
Your attorney should report the accident to your insurance agent as soon as possible. They will provide a clear explanation of the crash and share the following details:
- Time and date
- Location of the accident scene
- Sequence of events
- The extent of property damage and injuries
- Other driver’s name and insurance information
After they report the accident, your car insurance company will issue two separate adjusters—one for you and one for the other driver since you both share the same insurer.
These adjusters are supposed to work independently and evaluate the circumstances of the accident as if they were from different companies. They need to do this to avoid any conflict of interest and remain impartial.
4. Ensure the Deductible Is Waived
A deductible is the amount you must pay out of pocket before your insurance begins to cover the rest. For instance, if your deductible is $600 and your car repair totals $6,000, you would pay the $600, and your insurance would cover the remaining $5,400.
When you have a shared insurance company, you might not need to pay a deductible when you’re not at fault for the accident. Instead, the at-fault driver’s insurance policy pays for this.
Insurance companies do this to avoid disagreements about who’s at fault. They also aim to avoid accusations of ‘bad faith’ from customers who might feel that a decision isn’t in the best interest of either driver.
If the insurance company hasn’t waived the deductible or reimbursed the amount, you can request that they do so.
6. Calculate Damages & Write a Demand Letter
You’ll have to write a demand letter to the insurance company as you normally would when filing an accident claim.
This will include details such as:
- Description of the accident
- Total amount of damages you’ve incurred as a result of the accident
- Evidence such as a police report, medical reports, medical and repair bills
Determining damages is quite challenging as it’s subjective. An experienced personal injury lawyer can help calculate your current and anticipated expenses and other relevant damages (lost wages, pain and suffering, etc.) to ensure you receive fair compensation.
7. Negotiate With the Insurance Company
Once the insurance company reviews the demand letter and liability coverage limits of the at-fault driver, the insurance adjuster will present a settlement offer. You can either accept it or try to negotiate for a higher amount.
A lawyer would know the true value of your car accident claim as they know the settlement amounts similar cases have received in the past. They will handle the negotiations for you, making sure you won’t have to pay for medical expenses and repairs out of pocket.
Although the claims process in a shared-insurer case can be slightly more complex, having a common insurer can make certain things easier for all parties involved.
Let’s take a closer look at the advantages of this situation.
Advantages of Having the Same Insurer
When your insurance company also covers the other driver, you may experience these benefits:
1. Streamlined Communication
Speaking to a representative at your own insurance company is often easier and less of a hassle because they’re already familiar with your policy and history. They have all your details on file, which can streamline the process and save time.
Plus, having the same insurer can reduce delays that can occur when multiple insurers are involved. When both adjusters are with the same company, there's a shared communication channel, which makes it easier to exchange information quickly and accurately (provided both drivers agree).
2. Faster Handling of Disputes
When adjusters from the same car insurance company can’t agree on who’s at fault, they will escalate the dispute to an internal arbiter rather than going for litigation. An internal arbiter is usually a senior manager or a technical expert for liability claims.
The insurance company prefers to handle things in-house as it’s much faster and less expensive than litigation. The latter would require hiring lawyers and going through the time-consuming and expensive lawsuit process.
3. Better Customer Service
Auto insurance companies have a financial incentive to settle your claim fairly, especially if you're a customer. In most cases, they would lose more money in the long run if you decided to leave them for another provider because you were unhappy with your insurance coverage.
So, rather than risk losing you as a customer, it should ideally be in their best interest to provide better service and pay out your insurance claim on time.
But that’s an ideal situation.
The reality is that since the insurance provider has a financial interest in both sides of the claim, they might be more focused on protecting their bottom line rather than making sure both parties are fully compensated.
Let’s explore the complications both parties face when they have insurance policies from the same company:
1. High Conflict of Interest
Even though the insurance company is required to handle your personal injury claim fairly, not everyone operates ethically, and most adjusters may not have your best interests at heart.
The two adjusters might come to an unfair agreement behind the scenes that allows the company to avoid paying the full amount of the claim it would otherwise be responsible for.
An insurance company might also assign a single adjuster to handle the claims for both drivers. This could create a situation where the adjuster is more focused on safeguarding the company’s profits, potentially reducing payouts to both parties.
If this happens in your auto accident case, you should hire a lawyer to challenge any unfair decisions.
3. Delays Due to Subrogation
Subrogation is the process by which an insurance company seeks reimbursement from the at-fault party for a claim it has paid to its policyholder. This ensures the insurance provider can recover their costs and prevents the accident victim from receiving double compensation (by claiming both their own insurance and the other party's).
When the same insurance company covers both drivers, the insurer may have to navigate complex internal processes to handle subrogation. This often requires coordination between different departments within the company, leading to delays in settling your claim.
3. Pressure to Accept Lowball Offers
As mentioned earlier, the insurance company would want to maintain a good relationship with you. On the flip side, you might also want to be in the company’s good books.
You might feel pressure to accept a lower offer to keep things cordial or avoid your premium from increasing in the future.
That’s why you should consult an experienced car accident lawyer before you begin your claim. They’ll be able to recognize lowball offers and, in turn, prevent insurance companies from acting unethically and make a more reasonable proposal.
Here’s what an attorney does to prevent any conflicts of interest and maximize your settlement:
Bad faith refers to a situation where an auto insurance company fails to act honestly and fairly when processing your claim.
As mentioned earlier, bad faith can occur if insurance adjusters work together in private or if a single adjuster is assigned to handle both claims.
If the lawyer suspects that your personal injury claim is not being processed fairly, they can file a bad faith lawsuit against the insurer. If an insurance company is found guilty, they may be required to pay damages beyond the policy limits, including compensation for emotional distress and punitive damages (in some cases).
The threat of a bad faith claim can be a powerful motivator for the insurer to reconsider their approach and handle your insurance claim fairly.
2. Building a Strong Case
Texas follows a modified comparative fault rule, which means that if you are partially at fault for the auto accident (less than 50%), the compensation could be lowered in accordance with your level of fault. In most cases, insurance adjusters decide who’s at fault based on evidence.
So, how does the comparative fault rule apply to your case?
When the insurance adjuster has to assign blame, they might argue that you’re partially responsible for the accident (even if that’s not accurate), which would reduce the amount they have to pay you.
A lawyer can gather sufficient evidence, such as a police report, surveillance footage, witness testimonies, etc., to prove that you are less at fault. They can also bring in accident reconstruction specialists to show how the accident happened.
Once all the evidence has been collected, they can build a compelling narrative that ties together the facts in a way that supports your case. Based on this, the adjusters could reduce the percentage of your fault and maximize the settlement you’re entitled to.
3. Filing a Car Accident Lawsuit If Necessary
While many claims are resolved through settlement, sometimes negotiations could go on forever or break down entirely.
If that happens, a personal injury lawyer can file a car accident lawsuit against the insurance company and fight for your compensation in court.
In some instances, just the threat of litigation can prompt the insurer to reconsider their position and offer a fair settlement, as they know that going to court could be expensive.
Navigate the Complexities of a Shared-Insurer Accident Case with No Bull Law
Because of the conflict of interest involved when two parties have the same insurance provider, you need a lawyer to step up to ensure that the company doesn’t take advantage of your situation.
At No Bull Law, we believe in handling every case with a fierce passion for justice. Our skilled lawyers can protect your rights and guide you through the complex claims process.
Here’s how it works:
- You contact us for a free case consultation
- We will start investigating your claim.
- If we take up your case, we’ll fight to win the settlement you deserve.
And the best part is that you pay no fees ‘less we win!
Apart from car accidents, our law firm also offers legal services for claims, including:
- Bus accidents
- Pedestrian accidents
- Motorcycle accidents
- Drunk driving accidents
- Fall accidents
Ready to claim what you deserve?
Contact No Bull Law today for a free consultation.
FAQs About Shared-Insurer Accident Case
Here are the answers to two common questions related to shared-insurer claims:
1. Will Sharing the Same Insurance Company Make the Claims Process Faster or Slower?
Sharing the same insurance provider can sometimes speed up the process, as there are fewer logistical and administrative hurdles.
However, it could also lead to delays since the company may take more time to review the case details impartially. This additional scrutiny could slow down the process, especially when there’s a dispute over fault or if either party feels the insurer might favor the other.
2. Do I Have the Option To Request a Different Adjuster If I’m Concerned About a Conflict of Interest?
Yes, you can ask for a different adjuster if you feel the current one isn't being fair or is hard to work with. You can always request to speak with their supervisor to have a new adjuster assigned to your case.
Another option is hiring a private insurance adjuster to get a fresh perspective on your claim.
We recommend that you consult the experts at No Bull Law to guide you through this decision.
