Understanding Auto Insurance Adjustments: A Guide

Auto insurance adjustment can be a complex process, and it's important to understand how it works to ensure you're getting a fair deal. An insurance adjuster, or claims adjuster, is responsible for investigating your insurance claim and determining the value of your car after an accident. This process, known as a mid-term adjustment (MTA), involves assessing the damage, reviewing your policy, and collecting statements from those involved to decide if the insurer should pay for the damage. The adjuster's determination can result in your insurance company paying less than expected, especially if your vehicle is deemed a total loss. To protect yourself, it's crucial to maintain your vehicle, understand its value, and be proactive in providing the necessary information to your insurance provider.

Mid-term adjustments and their costs

A mid-term adjustment (MTA) refers to any change made to an insurance policy before the end of the policy period. This could include changing your address, adding a named driver to your policy, selling your current car and buying a new one, or changing personal details such as your name.

The cost of an MTA varies depending on the insurance provider and the nature of the change. Some providers do not charge for MTAs, while others may charge a fee of £25 or more, even if the change is made online. This fee is in addition to any changes to the cost of the premium. For example, adding a named driver under the age of 21 is likely to result in a higher premium.

Insurers may charge a fee for MTAs to cover administrative costs, such as staffing and system costs, and to discourage changes. A cancellation is often treated as a special case of MTA and may attract additional fees.

It is important to request an MTA as soon as a change in circumstances occurs to avoid problems with your policy if you need to make a claim.

How to negotiate with an adjuster

Negotiating with an insurance adjuster can be a daunting task, especially if you are not an experienced negotiator. Here are some tips on how to negotiate with an adjuster to get a fair settlement:

Know the Value of Your Car

Before entering negotiations, it is important to determine the value of your car. This can be done by getting estimates from several sources, such as your trusted mechanic, other mechanics, and online tools like Kelley Blue Book or Edmunds. This information will be crucial when negotiating with the adjuster, as they will likely provide a lower estimate than what it actually costs to repair or replace your car.

Come Prepared with Supporting Evidence

When negotiating with an insurance adjuster, it is important to have all the necessary documentation to support your claim. This includes repair bills or estimates, police reports, eyewitness statements, photos or videos of the accident scene and injuries, and pay stubs. Having strong evidence will give you a better position during negotiations.

Calculate a Full Settlement Amount

Using the evidence you have gathered and your personal experience, calculate a full settlement amount that covers all your past, current, and future economic and non-economic damages. This includes medical bills, lost income, property damage, pain and suffering, and any other costs related to the accident. Knowing your desired settlement amount and your minimum acceptable settlement will help guide your negotiations.

Don't Accept the First Offer

Insurance adjusters often start with a low initial offer to test your awareness of your rights. It is important not to accept this first offer and instead counter with a higher amount. Ask the adjuster to justify their offer, and use their arguments to form your counterarguments. Be prepared to negotiate back and forth until you reach a settlement that you are happy with.

Get the Settlement in Writing

Once you have reached an acceptable settlement with the insurance adjuster, make sure to get it in writing. This will protect both parties by setting clear expectations and helping to ensure they are met. Don't sign anything until you have reviewed the written settlement agreement and are satisfied with the terms.

Seek Legal Assistance if Needed

If you feel overwhelmed by the negotiation process or are dealing with a complex case, consider seeking legal assistance. An experienced attorney can help you navigate the process, protect your rights, and potentially get you a higher settlement. They can also review any documents or authorization forms from the insurance company to ensure your best interests are being served.

The role of an insurance adjuster

An insurance adjuster, also known as a claims adjuster, is a person who investigates an insurance claim to determine if the insurer should pay for damage or injuries, and if so, how much they should pay. They are assigned to a case to verify that the claimant has the applicable coverages and that the damage is covered. Adjusters may also work with claimants to get their vehicle inspected or set up repairs on their behalf.

Claims adjusters may handle property claims involving damage to structures, and/or liability claims involving personal injuries or third-person property damage. They either work directly for the insurance company or may be freelance adjusters hired by the company to handle specific claims.

When reviewing a claim, an adjuster will:

• Review the details of the accident/loss and the insurance policy
• Interview those involved, including drivers, passengers, and witnesses, to collect recorded statements
• Review the scene of the accident, police reports, or video footage of the loss
• Go over options with the claimant, such as moving forward with repairs or getting an inspection first
• Coordinate an inspection of the vehicle and write up a repair estimate
• Negotiate with the claimant and settle the claim

Adjusters are typically required to have at least a high school diploma, although some positions may prefer an associate's or bachelor's degree. They must also be licensed in some states.

What to do if you don't agree with an adjuster's findings

It can be frustrating when you disagree with an insurance adjuster's findings, especially when dealing with the aftermath of a car accident. However, it's important to remember that you have options and don't have to simply accept their determination. Here are some steps you can take if you don't agree with an adjuster's findings:

Gather Evidence and Information

Obtain all the necessary records pertaining to your claim, including medical records, repair estimates, police reports, and any communication with the insurance company. Having comprehensive documentation will be crucial in supporting your case.

Review Your Insurance Policy

Familiarize yourself with your insurance coverage, rights, and obligations under the policy. Understanding your policy details will help you identify any discrepancies or areas where you may be entitled to additional compensation.

Seek a Second Opinion

Consider getting an independent appraiser or another qualified professional to assess the value of your claim. A second opinion can provide valuable insight and help determine if the adjuster's findings were inaccurate or unfair.

Negotiate with the Insurer

Don't be afraid to negotiate with the insurance company. Be patient but persistent in pursuing a fair settlement. Remember that insurance companies are businesses, and it's common for adjusters to downplay the cost of repairs or offer low settlements.

Consult a Lawyer

Speak with a car accident lawyer or attorney who can provide legal counsel and guide you through the claims process. They can help you understand your rights, navigate negotiations, and take legal action if necessary.

File a Complaint

If necessary, don't hesitate to file a complaint with the insurance company or regulatory authorities. If you believe the adjuster's findings are unjustified, it's important to make your concerns known through the appropriate channels.

Remember, you have the right to challenge an insurance adjuster's determination if you believe it is incorrect or unfair. By following these steps, you can protect your rights and increase your chances of obtaining a fair settlement.

What to do if your circumstances change

It's important to notify your insurance provider if your circumstances change, and you may need to request a mid-term adjustment (MTA). An MTA is any change made to your car insurance policy once it has started. For example, if you move house, you'll need to update your address, which would be an MTA. Other reasons for an MTA include adding a named driver to your policy, amending personal details such as your name or occupation, adding extra information such as where you park your car at night, changing your annual mileage, or making modifications to your vehicle.

It's important to request an MTA as soon as possible, as neglecting to notify your insurance provider could lead to problems with your policy should you need to make a claim. The cost of an MTA will vary depending on your insurance provider, and some providers may charge you a fee for making changes. However, others will not charge at all for MTAs.

In addition to an MTA, you may also want to consider switching to a new insurance provider if your circumstances change. For example, if you're getting married, it may be cheaper to insure both vehicles on the same policy instead of maintaining separate policies. Similarly, if you're moving, your address will impact your insurance rates, so it's worth shopping around for a better deal. Other reasons to switch insurance providers include adding a new driver, such as a teenager who has just received their license, or if you're unhappy with your current insurer's customer service.

When switching insurance providers, it's important to follow a few key steps to ensure a smooth transition. First, consider your coverage options and check for any potential penalties for switching providers before your current policy term ends. Then, compare quotes from multiple carriers to find the best rates and coverage options for your needs. Contact your current carrier to see if they can offer a better rate or identify any new discounts you may be eligible for. Research the new company thoroughly, considering factors beyond price, such as customer satisfaction and financial stability. Avoid a lapse in coverage by ensuring your new policy starts on the same day your old policy ends. Cancel your old policy by contacting your agent or insurance company and requesting confirmation of the termination in writing. Finally, update your insurance ID cards with your new provider's information.

Frequently asked questions