Breaking Into The Auto Insurance Adjusting Field: A Step-By-Step Guide

If you're looking to become an auto insurance adjuster, you'll need to be prepared for a challenging but rewarding career path. Auto insurance adjusters play a crucial role in settling insurance claims by determining the extent of damage and liability in vehicle accidents. To become an auto insurance adjuster, you'll need to meet certain requirements and follow specific steps. Firstly, you must complete the minimum education requirements, which is typically a high school diploma or equivalent. While this is the baseline, having an associate's or bachelor's degree in a relevant field can set you apart from other candidates. Relevant majors could include communications or business.

Next, you'll need to decide on the type of adjuster you want to be, such as staff, independent, or public adjuster, as this will influence the steps you need to take. Obtaining a license is a crucial step, as most states require insurance adjusters to be licensed. You may need to complete a pre-licensing course and pass an exam to obtain your license. Maintaining your license through regular renewal and continuing education credits is also essential.

To be successful in this field, you'll need strong communication skills, computer proficiency, and time management abilities. Prior experience in automotive technology or as an automotive technician can also be advantageous. So, if you're ready to dive into the world of auto insurance adjusting, start by ensuring you meet the educational requirements and choosing the right career path for your goals.

Education requirements: A high school diploma or GED is needed, but a degree is preferred

To become an auto insurance adjuster, you will need to meet the minimum education requirements. This means having a high school diploma or GED as a bare minimum. However, it is preferred that you have a degree to make you stand out against other candidates. Relevant majors for becoming an auto insurance adjuster include communications.

If you have no work experience or high school diploma, it may take 2-4 years to meet all the requirements to become an auto insurance adjuster. If you have a high school diploma and some relevant work experience, and all you need is an adjuster's license, it can take just a few weeks to become qualified.

Licensing: You must pass an exam and renew your license with continuing education credits

To become a licensed auto insurance adjuster, you will need to pass a state exam and maintain your license through regular renewal and continuing education credits.

The Exam

The first step to getting your insurance adjuster's license is to study for and pass the state insurance adjuster exam. A test prep course can help you prepare to pass on your first attempt. As with any exam, preparation is key.

While each state's insurance adjuster exam is different, most cover similar material. This includes:

• Property and casualty product knowledge (fire policies, auto policies, homeowner policies, commercial policies, marine policies, and exclusions and extensions)
• Insurance terms (e.g. appraisal, deductible, replacement cost)
• Policy provisions (including declarations, insuring agreements, conditions, exclusions, and appraisals)
• State-specific regulations and licensing requirements

The exam is typically multiple-choice and computer-based, with the number of questions and time limit varying by state. For example, in Texas, the All Lines Insurance Adjuster exam includes 150 questions, the Property and Casualty exam includes 150 questions, and the Public Insurance Adjuster exam includes 100 questions. The cost of the exam also varies by state, usually falling between $23 and $200 per attempt.

To be eligible to take the exam, you will likely need at least a high school diploma or equivalent, and some companies may prefer a college degree in a related field. Additionally, you may be required to take a pre-licensing course before you can register for the exam.

Maintaining Your License

Once you have passed the exam and obtained your license, it is important to maintain your licensure through continuing education credits and regular license renewal. Each state has different requirements for maintaining your license, so be sure to check the guidelines in your state. Continuing education credits can typically be earned through online or in-person courses, and sometimes through employer-provided training sessions or by publishing articles or giving lectures related to the insurance claims industry.

Skills: Analytical, communication, and interpersonal skills are key

To become a successful auto insurance adjuster, you need a combination of analytical, communication, and interpersonal skills.

Analytical Skills

Auto insurance adjusters need to be able to assess complex information and make sound decisions. They must be able to evaluate and negotiate settlements, requiring an understanding of the value of vehicles and the cost of repairs. They also need to determine policy coverage by analysing investigation data and policy terms.

Communication Skills

Communication skills are essential for auto insurance adjusters, who regularly interact with multiple stakeholders, including policyholders, insurance companies, witnesses, law enforcement, and medical professionals. They must be able to communicate complex insurance terms in simple language to claimants and interact effectively with other professionals.

Interpersonal Skills

Auto insurance adjusters should have the ability to handle upset or stressed claimants with empathy and understanding. When dealing with individuals who have experienced a loss, such as a vehicle theft or accident, adjusters should be respectful and patient while working through the claims process.

Career path: Choose between staff or independent adjuster roles

There are several types of insurance adjuster positions available. The two main career paths for insurance adjusters are staff adjuster and independent adjuster roles.

Staff adjusters are permanent employees of an insurance company, working full-time and handling claims exclusively for that company. They are paid a salary and benefits, and work on a variety of claims, most commonly those relating to property damage or personal auto claims. Staff adjusters are typically the most well-known type of insurance claims adjuster.

Independent adjusters, on the other hand, are self-employed contractors who work for multiple insurance companies or third-party organisations. They are hired directly by insurance companies to perform claims investigations and make claims-related decisions. Independent adjusters often work with catastrophe-related claims and travel to affected areas after major weather events or emergencies. They are paid per claim, hourly, on an adjuster fee schedule, or on a per-day basis.

Both types of adjusters may handle regular daily claims and catastrophe claims.

How to become an insurance adjuster

To become an insurance adjuster, you will need to complete the following steps:

• Complete the minimum education requirements: Most insurance claims adjuster positions require a high school diploma or equivalent, but some employers may prefer a bachelor's degree.
• Decide on the type of adjuster role you want: Staff or independent.
• Meet licensing requirements: Many states require insurance adjusters to obtain a license. You can take a pre-licensing course and then sit for the licensing exam.
• Maintain your license: This can be done through continuing education credits and regular license renewal.
• Develop essential skills: Adjusters need strong communication skills, computer skills, and time management skills.
• Find entry-level positions or internships: Gain experience in the field by applying for internships or entry-level positions.

Salary: Auto claims adjusters earn an average of $52,621 per year

The salary of an auto insurance adjuster varies depending on their location, experience, education, and employer. In the United States, the median base salary for a claims adjuster is around $65,000 per year, with the average being $63,411. However, salaries can range from $40,000 to over $100,000 annually. Auto claims adjusters, specifically, earn an average of $52,621 per year.

The type of adjuster also affects the salary. Staff adjusters, who are typically year-round employees working directly for an insurance company, earn salaries ranging from $40,000 to $80,000 or more. On the other hand, independent adjusters, who are contractors working for insurance adjusting firms, can make over $100,000 per year, especially when handling catastrophe claims.

It is worth noting that independent adjusters have more flexibility in their schedules and may have more remote work opportunities. They usually earn a percentage of the amount of each claim they settle, known as a 'fee schedule'. In contrast, staff adjusters are salaried employees with standard employment benefits such as insurance, vacation leave, and company equipment.

Overall, a career as an auto insurance adjuster offers a competitive salary, with the potential for higher earnings depending on various factors and the type of adjuster role.

Frequently asked questions