Conflicts of Interest, Claim Handling, and Your Rights

Accidents in Texas can be complicated, but they become even more complex when both drivers are insured by the same company. While this may seem convenient, it can create conflicts of interest for the insurance company and affect how claims are handled.

Understanding the insurer’s duties, potential conflicts, and the protections available to you is essential to ensure that your rights are safeguarded and that you receive fair treatment.

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How Conflicts of Interest Arise

Insurance companies have a primary duty to act in good faith toward their insured. When one company represents two parties with opposing claims, it can create a substantial conflict of interest.

Key Texas case law:
  • Perez v. Kleinert, 211 S.W.3d 468 – The court recognized that an insurer representing two antagonistic insureds may face a conflict of interest. Courts can evaluate and address these conflicts, and insurers bear the burden of showing no substantial conflict exists.
  • Caserotti v. State Farm Ins. Co., 791 S.W.2d 561 – Clarified that insurers owe their full duty of good faith and fair dealing only to their insured, not to third-party claimants, including other insureds of the same company.
This distinction is critical because an insurer must balance fidelity to its insured with the fair handling of claims against another insured. Failure to navigate this properly could lead to disputes or delayed claim resolutions.
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Risks When the Same Insurance Company Covers Both Parties

  • Partiality Concerns – The insurer’s primary obligation is to protect its own insured, which may result in less favorable handling of the other party’s claim.
  • Settlement Complications – If the insurer attempts to settle one claim while defending another, it could jeopardize fairness and create potential legal challenges.
  • Limited Third-Party Duties – Insurers are not required to treat third-party insureds with the same fiduciary responsibility, which may leave the non-primary insured needing legal assistance to protect their rights.


Supporting case law:

  • Matagorda County v. Texas Ass’n of Counties County Gov’t Risk Mgmt. Pool, 975 S.W.2d 782 – Courts emphasized public policy concerns, noting that allowing an insurer to subrogate or take action against its own insured could violate fiduciary duties and public trust.


How to Protect Yourself


If you are involved in a Texas accident and the other driver shares your insurance company, take these steps:


  1. Notify Your Attorney Early – Legal guidance is crucial to ensure your rights are protected and conflicts are properly addressed.
  2. Document Everything – Take detailed notes, photographs, and gather witness information to support your version of events.
  3. Understand Your Policy – Review your insurance coverage, including liability limits, collision coverage, and any potential exclusions.
  4. Request Independent Evaluation – In some cases, it may be appropriate to have independent adjusters or medical examiners evaluate your claim.
  5. Monitor Settlement Offers Carefully – Ensure that any settlement does not unfairly favor the other insured. Your attorney can help negotiate terms that reflect your damages accurately.
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Why Legal Assistance Matters


Handling a claim where both drivers share the same insurer can be tricky. Without legal guidance, you may be unintentionally disadvantaged because:


  • The insurer may prioritize the other insured.
  • Potential conflicts of interest could delay or reduce your recovery.
  • Court intervention may be necessary to ensure fairness.


An experienced Texas personal injury attorney can help navigate these challenges, ensuring that your damages are properly evaluated and recovered.


Key Takeaways


  • Sharing the same insurance company as the other driver creates potential conflicts of interest.
  • Texas law and case law emphasize the insurer’s duty to its insured, not necessarily to the opposing party.
  • Independent legal guidance is essential to protect your rights and ensure fair compensation.
  • Documenting evidence, understanding your policy, and monitoring settlement offers are critical steps.


If you’ve been involved in a Texas car accident and the other driver has the same insurance company, it’s vital to act quickly. Contact Wyde & Associates today to protect your rights, navigate conflicts, and maximize your potential recovery.

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