If both parties involved in the accident have the same agent and company, is this a conflict of interest?

UPDATED: Sep 30, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 30, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If both parties involved in the accident have the same agent and company, is this a conflict of interest?

Our car was purchased 6 months prior to the accident with less that 8K miles on it. My wife was at work and the car in the parking lot when another vehicle lost control hitting another vehicle, 3 pedestrians and finally shooting across the parking lot launching off a pillar landing in the driver side of our car. Now because the car has major repair of damage it can no longer be certified and damages are about 10 to 15K and the value has dropped. I believe we should be given a new vehicle to replace the damaged one and don’t think we are being treated fairly because both of us are insured with the same company.

Asked on April 28, 2017 under Accident Law, Wisconsin


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

A conflict of interest is when there is an economic incentive for someone with power or authority to treat one of his/her/its clients worse than the other. It is not a conflict of interest to have the same insurer or agent: the agent has nothing to do with making the decision as to who gets how much after an accident and so the identity of the agent is irrelevant. As for the insurer, it will end up paying out for the total damages--whether driver A gets more or driver B gets more (e.g. based on their determination of whether A is more at fault, or B is more at fault, etc.) doesn't affect the total payout--so there is no conflict there--the insurer has nothing at stake in how it treats its two insured. Instead, it simply pays out as per the facts of the accident and the terms of the two driver's policies.
An insurer only has to give you a new vehicle (e.g. rather than repair, or pay out the then-current fair market value of a totalled vehicle) IF you purchased some sort of "new vehicle replacement coverage." If you did not, the insurer owes you only what the policy says it does for a claim like this, which is typically the lesser of the cost to repair or the fair market (blue book) value of the car. You are not owed additional compensation because the car cannot be certified, again, unless the policy you bought and paid for provides for such extra coverage.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption