Jeffrey Wade
A Rewarding Career in Insurance Adjusting
Insurance adjusting is a stable and lucrative career path that is currently in high demand. It is a challenging but rewarding line of work, where you will be helping people get back on their feet after a loss.
Insurance adjusters are responsible for overseeing every aspect of the claims process. They investigate claims, determine an insurance company's liability, and decide on a fair settlement amount.
There are several types of insurance adjusters, including staff adjusters, independent adjusters, catastrophe adjusters, and public adjusters. Each of these roles involves assessing damage to property and making evaluations of insurance claim monetary values.
Becoming an insurance adjuster typically requires completing a few key steps, such as obtaining a high school diploma or equivalent, deciding on the type of adjuster role, taking an insurance licensing exam, and maintaining your license through continuing education.
With the right skills, qualifications, and dedication, you can embark on a fulfilling career as an insurance adjuster, making a positive impact on those in need.
| Characteristics | Values |
|---|---|
| Education Requirements | Minimum of a high school diploma or GED equivalent |
| Licensing | Required in most states; some states require a pre-licensing course |
| License Maintenance | Continuing education credits and/or regular license renewal |
| Skills | Communication, customer service, time management, computer literacy, negotiation, investigative work, numerical skills |
| Salary | $45,000 to $100,000+ depending on experience and type of adjuster |
| Work Hours | Flexible; can choose when and how much to work |
What You'll Learn
Check if insurance adjusting suits your skills and interests
Insurance adjusting is a stable industry with excellent earning potential, but it is not for everyone. To be a successful insurance adjuster, you need a combination of hard and soft skills.
Hard Skills
The hard skills and qualifications necessary to become an adjuster are relatively simple. They include:
- Being at least 18 years old
- Holding a valid driver's license
- Being a bonafide resident of your state
Soft Skills
The soft skills that set great adjusters apart include:
- Self-discipline
- An excellent work ethic
- Strong communication skills
- Patience
- Empathy
- The ability to remain calm and impartial when dealing with people who may be under extreme stress
- The ability to put claimants at ease
- The ability to work on several projects at once
- Interest in analyzing information and taking a methodical approach to work
- Interest in negotiating with people and making decisions
Interests
Insurance adjusters should have an interest in:
- Investigative work
- Negotiating settlements
- Crunching numbers
- Flexibility in choosing when and how much they work
Education
To become an insurance adjuster, you need a minimum of a high school diploma or GED equivalent. While a bachelor's degree is not required, it may set you apart from other candidates.
Licensing
Many states require insurance adjusters to obtain a license by passing a licensing exam. This typically involves completing a pre-licensing course, which can be done online or in a classroom.
Career Paths
There are several types of insurance adjuster positions available, including staff adjusters, independent adjusters, catastrophe adjusters, and public adjusters. Each path offers different benefits and should be investigated closely to determine the best fit for your skills and interests.
Salary and Job Outlook
The median base salary for a claims adjuster in the United States is around $65,000, but salaries can vary from state to state. The more experience an individual has, the higher their earning potential.
From 2020 to 2030, over 25,000 jobs are expected to become available each year, providing ample opportunities for employment as a claims adjuster, especially for those with multiple state licenses.
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Choose your adjuster type: staff, independent, or public
When it comes to insurance adjusters, there are three main types: staff, independent, and public adjusters. Each type of adjuster has different roles, responsibilities, and allegiances, so it's important to understand the differences before choosing which path to pursue.
Staff Adjuster
A staff adjuster, also known as a company adjuster, is a full-time salaried employee of a single insurance company. They work directly for and represent the insurance company, not the policyholder. Their job is to investigate, evaluate, and settle insurance claims. Staff adjusters can be desk adjusters, who handle claims remotely, or field adjusters, who visit sites to assess damage in person. Staff adjusters typically have consistent schedules and work in specific geographic locations. They are usually W-2 employees, receiving benefits and paid time off, and may have their license renewal costs covered by their employer.
Independent Adjuster
Independent adjusters, on the other hand, are hired on a contract basis and often work for third-party adjusting firms or independent staffing firms. They are not direct employees of the insurance company and may work for multiple insurance companies or firms. Independent adjusters are typically 1099 contractors, responsible for tracking their expenses and mileage, and may work for themselves. They have more flexibility in creating their schedules and choosing where they work. However, they may not receive the same benefits as staff adjusters, and their income may be higher due to the contract nature of their work. Independent adjusters must maintain their licenses and CE credits at their own expense.
Public Adjuster
Public adjusters are the only type of adjuster who works specifically for the policyholder, not the insurance company. They are hired by the policyholder to represent their interests and ensure they receive a fair payout on their insurance claim. Public adjusters are licensed and trained insurance professionals who advocate for the policyholder throughout the claims process. They evaluate damages, estimate repair or replacement costs, help policyholders understand their insurance policies, file documents, meet deadlines, and negotiate with the insurance company. Public adjusters typically charge a percentage of the total claim payout as their fee, which can range from 3% to 30% of the settlement.
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Get a high school diploma or GED
To become an insurance adjuster, you'll need a minimum of a high school diploma or GED. This is the bare minimum education requirement for this career path. If you don't have a high school diploma, consider enrolling in GED courses and passing the GED exam.
While a bachelor's degree is not necessary for most insurance adjuster positions, having one may set you apart from other candidates. An associate's or bachelor's degree may even be required depending on the employer and specific job requirements.
If you have a high school diploma and some relevant work experience, you can become an insurance adjuster in just a few weeks.
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Take an insurance licensing exam
Taking the insurance licensing exam is a crucial step in the licensing process. Here is a comprehensive guide to help you prepare for and pass the exam:
Exam Format
The insurance licensing exam is a timed, proctored multiple-choice test, consisting of around 50 to 180 questions. The exam is computerized, and the exact length depends on the state and the license type. There is no essay section, and all questions are in a multiple-choice format with four options available as answers.
Preparation
To prepare for the exam, it is recommended to take a pre-license education course from a reputable insurance education company. These courses offer practice exams, study guides, and other resources to help you succeed. Here are some additional tips to help you prepare:
- Start preparing early and create a study schedule.
- Take practice exams to familiarize yourself with the question format.
- Organize your study space to ensure a comfortable and distraction-free environment.
- Use visual aids, such as flow charts and diagrams, to help with revision.
- Explain the concepts to others to reinforce your understanding.
- Take regular breaks and stay physically active during your study sessions.
- Stay hydrated and eat nutritious meals to fuel your brain.
Exam Day
On the day of the exam, arrive at the testing center early. Bring a picture ID and any other required documents, such as a Certification of Completion from your pre-license course. Leave all personal belongings in a locker, as you are not allowed to bring them into the testing room. During the exam, follow the instructions provided by the proctor, and manage your time effectively.
Results
Once you complete the exam, you will receive your results immediately. If you pass, you will receive instructions on how to apply for your license. If you don't pass, don't be discouraged. Use the diagnostic report to identify areas for improvement, and consider investing in an exam preparation package for your next attempt.
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Maintain your license
Once you have your license, you will need to maintain it through continuing education credits and/or regular license renewal. Each state has its own requirements for maintaining your license.
In Idaho, resident adjusters are required to complete 24 hours of continuing education (CE) every 2 years, including at least 3 hours of Ethics.
In Florida, 24 hours of continuing education (CE) must be completed every two years, including the 4-Hour Law and Ethics update. Florida adjusters may not receive credit for any CE course taken twice in any 24-month period.
In Texas, the most popular state to designate as a DHS, the following continuing education is required:
24 hours biennially including ethics.
In addition to obtaining a license, the following states also require continuing education to maintain the license:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Connecticut
- Delaware
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
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Frequently asked questions
The qualifications to become an insurance adjuster vary by state. In most states, you need a high school diploma or GED, and in some states, you may need an associate's or bachelor's degree. You will also need to pass an insurance licensing exam, and in some states, you will need to complete a pre-licensing course before taking the exam.
Effective insurance adjusters need strong communication skills, as they regularly interact with insurance policyholders, insurance companies, and other professionals. They also need to be proficient in using computers and computer programs, as most insurance companies use electronic means to deliver claims estimates and other information. Time management skills are also important, as adjusters may be responsible for multiple claims at once.
An insurance adjuster's primary role is to investigate insurance claims to determine an insurance company's liability. They may interview the claimant and witnesses, gather relevant documentation, determine if an insurance policy covers the claim, and compile a report for the insurance company. They work in various insurance settings, including automobile, health, life, and property insurance.
