Car accidents among drivers insured by the same company are a common occurrence. Most jurisdictions have large auto insurance companies, and cases of drivers involved in a two-car accident being insured by the same company are common. Insurance companies owe their clients the duty of protection. When the same company insures both parties involved in an accident, it sometimes causes a conflict of interest. For instance, during contentious issues, if the insurance company takes the side of one client, it risks losing the other. Hence, insurance companies have come up with mechanisms to strike a balance.

The Implications of Having the Same Insurance Company on Deductibles

The driver hit in an accident may be exempted from paying deductibles when repairing the car if the same company insures both drivers involved in the accident. This represents a significant shift. In most accidents where different insurance companies represent the drivers, the driver who is not at fault may be required to pay immediately for some of the repairs done on the car. The amount paid depends on the deductibles.

For example, if the accident caused damages worth $3,000, and the driver has a deductible of $500, the driver will be required to pay the initial $500 for the repair work before the auto insurance company settles the remaining $2,500. However, if investigations find that the hit driver had no fault at all, the insurance company will refund the money paid upfront.

On the contrary, in cases where the same company represents both drivers, the process is a bit different. In such cases, the insurance firm does not require the hit driver to pay upfront with his own money for the repairs. The money used for repairs is usually taken from the account of the driver who is responsible for the accident. However, in cases where the insurance company needs to investigate which driver is at fault, the benefit might not apply

Merit and Demerit of Having the Same Insurance Company

Having the same insurance company can be of assistance, especially for the driver who is not at fault. The insurance company is more likely to award a reasonable compensation on the claim as a way of retaining a customer. On the contrary, if the same company insures the drivers, the insurance company may take advantage and protect their own profit at the expense of the client. This means that it is important to interrogate an offer before accepting it because the insurance company is also protecting its own interests, and the interests of the other driver.

Same Insurance Company Does Not Mean Faster Claims

Apart from the deductibles and the possibility of a fair compensation, being covered by the same auto insurance company does not have any other benefits or demerits for both parties. The law requires insurance companies to treat all cases the same, whether the same insurer or different companies cover the parties. Insurance companies assign different adjusters for every party even when handling in-house cases. Moreover, the adjusters representing the drivers may not work in the same office or city, even if they both work for the same insurance company. This means that a claim cannot be processed faster because the same insurance company covers the involved parties.