Orlando Harmon
Becoming an auto insurance adjuster is an attractive career option for those who enjoy investigative work, crunching numbers, and negotiating settlements. It offers a stable income, flexibility, and the opportunity to help people in need. While the role is in high demand, it is often overlooked by those starting their careers.
To become an auto insurance adjuster, you'll need to meet certain requirements and take several steps. Here's an introduction to guide you through the process:
First and foremost, ensure that becoming an insurance adjuster aligns with your interests, skillset, and lifestyle. This career path offers various pros, such as excellent earning potential, travel opportunities, and the chance to own your business. However, it also comes with challenges like inconsistent income, a fast-paced environment, and the responsibility of providing your tools.
The next step is to obtain the necessary education. While a high school diploma or GED is typically the minimum requirement, some employers may prefer candidates with an associate's or bachelor's degree. It's worth noting that prior work experience in a related field can also be advantageous.
After that, you'll need to obtain your insurance adjuster license. The requirements for licensing vary by state, with some states not requiring a license at all. Be sure to check the guidelines for your specific state. If your state mandates licensing, you'll need to pass an exam, and in some cases, complete a pre-licensing course.
Once you have your license, focus on gaining adjuster training. This includes software training, residential or auto construction knowledge, job training, and carrier certifications from major insurance companies.
Finally, start building your independent adjusting business. This involves setting up your business as an LLC or corporation, getting on the rosters of independent adjusting firms, and networking within the industry.
| Characteristics | Values |
|---|---|
| Education Requirements | Minimum of a high school diploma or GED equivalent. A bachelor's degree or higher may set you apart from other candidates. |
| Career Path | Staff Adjuster, Independent Adjuster, Public Adjuster |
| Licensing | Many states require insurance adjusters to obtain a license. Some states have an all-lines adjuster license that covers a wide range of claims. |
| Training | Software training, residential or auto construction and part identification, job training, and carrier certifications are all types of training needed to become an insurance adjuster. |
| Skills | Analytical skills, communication skills, detail-oriented, interpersonal skills, math skills, time management, customer service skills, and driving skills. |
| Salary | The median base salary for a claims adjuster in the United States is around $65,000, but this can vary depending on experience and location. |
What You'll Learn
Decide if insurance adjusting is right for you
Insurance adjusting is a stable career with excellent earning potential, but it is not for everyone. Before you spend time and money on becoming an insurance adjuster, make sure it's a career you want to pursue. Ask yourself: is it a good fit for my skillset and lifestyle?
Pros of becoming an insurance adjuster
- You can make great money.
- You get to travel for work.
- You get to help people in need.
- You can own your own business.
Cons of becoming an insurance adjuster
- Income isn't always consistent.
- You will have to travel or drive for work.
- It is a fast-paced work environment with long hours.
- You're responsible for providing your own insurance adjuster tools.
- Weather can dictate how much work you get.
Skills required
There are no mandatory skills required to become an insurance adjuster. However, the following skills will help propel you to success in your career:
- Self-discipline
- Excellent work ethic
- Great communication skills
- Patience
- Empathy
- Analytical skills
- Interpersonal skills
- Math skills
- Time management skills
Day-to-day tasks
As an insurance adjuster, you will:
- Interview the party that made the claim, as well as the party that the claim has been made against.
- Speak with any witnesses who were present when the damage or accident occurred.
- Request police, medical or other reports that are related to the claim.
- Gather all documentation that supports or undermines a claim, such as statements, photographs and other records.
- Determine if an insurance policy covers specific claims being made and to what extent.
- Compile all information in a report for the insurance company.
- Notify all parties affected by the claims decision.
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Get a high school diploma or GED
To become an auto insurance adjuster, you'll need to obtain a high school diploma or GED. This is the minimum educational requirement for entry-level positions in the field.
Some employers may prefer candidates with a bachelor's degree or associate's degree, or even insurance-related work experience, but this is not mandatory for all roles. Obtaining a higher level of education or gaining relevant work experience can help set you apart from other candidates when applying for jobs.
If you don't have a high school diploma, you can enrol in GED courses and pass the GED exam to meet the minimum educational requirement for becoming an auto insurance adjuster.
Once you've obtained your high school diploma or GED, you can start exploring the different types of insurance adjuster positions available and decide which path you want to pursue. You can choose to become a staff adjuster, an independent adjuster, or a public adjuster, each with its own unique roles and responsibilities.
Having a high school diploma or GED is the first step towards a career as an auto insurance adjuster, and it will open up opportunities for further education, training, and specialisation in the field.
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Choose your career path
There are several types of insurance adjuster positions available. The most common type of staff adjuster is one who works for an auto insurance company and oversees claims made related to automobile accidents and other auto-related incidents.
Staff Adjuster
Staff adjusters work as year-round employees, typically full-time, for an insurance company. They are usually salaried and receive benefits.
Independent Adjuster
Independent insurance adjusters are contractors who work for one or more insurance adjusting firms. They handle claims for multiple insurance companies and may work on multiple claims at once.
Catastrophe Adjuster
Catastrophe adjusters can be either staff or independent. They travel to areas of extreme devastation that are overwhelmed with claims and can make more in six months than what many people earn in a year.
Inside or Desk Adjuster
Inside or desk adjusters handle claims from an office or call center. They may have field adjusters or contractors perform the inspection and then use the results to estimate and settle the claim.
Public Adjuster
Public insurance adjusters work directly for policyholders or customers. They are usually hired when a person or business does not feel that their insurance settlement is fair.
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Get a license
The requirements for becoming a licensed insurance adjuster vary from state to state. While some states require you to obtain a license, others do not. However, it is generally recommended to obtain a license as it enhances your credibility and expands your career opportunities.
State Licensing Requirements
Most states (34 out of 50) have their own insurance adjuster licensing process. If your state mandates licensing, it is essential to secure one to lawfully manage and finalize insurance claims. To obtain a license, you must first pass a state licensing exam. You can prepare for the exam by taking a preparatory class or a pre-licensing course, which will equip you with the knowledge to succeed. The exam fees typically range from $30 to $150.
It is worth noting that some states, like California and New York, have additional requirements such as bonding. These states also do not offer reciprocity, meaning you must complete all their requirements to process claims within their borders.
If your state does not require licensing, you can still benefit from obtaining a Designated Home State (DHS) license from a state like Florida. This will enable you to work claims in that state and any states with reciprocity agreements.
Application Process
Once you have passed the licensing exam, you will need to submit your application and pay the associated fees, which can range from $15 to $300. The application instructions and requirements vary by state, so be sure to review the specific guidelines for your state.
Maintaining Your License
To maintain your license, you will need to renew it periodically and complete continuing education credits. The number of continuing education hours required may differ depending on your state, but it typically ranges from 24 to 48 hours every two years. These credits can be earned through online or in-person courses, employer-provided training, publishing articles, or giving lectures related to the insurance claims industry.
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Learn the skills
To become an auto insurance adjuster, you'll need to develop a range of skills that will enable you to effectively perform the role and its various functions. Here are some key skills to focus on:
Communication Skills
Communication skills are essential for auto insurance adjusters as they regularly interact with multiple stakeholders, including insurance policyholders, insurance companies, witnesses, law enforcement, medical professionals, and other professionals involved in an insurance claim. Effective communication ensures that all parties are well-informed and receive timely updates regarding the claim. Proficiency in both oral and written communication is crucial.
Computer Proficiency
Most insurance companies rely on electronic systems for delivering claims estimates and other relevant information. Therefore, it's important for auto insurance adjusters to be comfortable using computers and various software programs. This includes proficiency in industry-standard claims writing software like Xactimate, which is widely used by adjusting firms.
Time Management
Auto insurance adjusters often juggle multiple claims simultaneously, so strong time management skills are essential. This is particularly true for independent claims adjusters handling catastrophe claims, as policyholders typically expect prompt handling of their claims. Adjusters need to be able to prioritize tasks and manage their time efficiently to meet the demands of their role.
Customer Service Skills
As an auto insurance adjuster, you'll be dealing with customers who have experienced accidents or other difficult situations. Customer service skills such as patience, empathy, and respect are crucial for building trust and maintaining positive relationships with policyholders during the claims process.
Driving Ability
Auto insurance adjusters need to be able to drive and be comfortable travelling to different locations as their work often involves visiting accident sites, assessing vehicle damage, and collaborating with various parties involved in a claim.
Claims Management
Understanding claims management systems and processes is vital for auto insurance adjusters. While claims software like Xactimate can streamline the process, adjusters should also be adaptable and able to learn different operating procedures used by insurance companies and adjusting firms.
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Frequently asked questions
The pros include the potential to earn a lot of money, the opportunity to travel for work, and the ability to help people in need. On the other hand, the cons include income instability, the necessity of travel or driving for work, long hours in a fast-paced work environment, and the responsibility of providing your own insurance adjuster tools.
The minimum educational requirement is a high school diploma or GED. However, some employers may prefer a bachelor's degree or a degree in a related field.
In addition to strong communication skills, auto insurance adjusters require proficiency in using computers and computer programs. They also need excellent time management skills to handle multiple claims simultaneously.
First, verify that insurance adjusting is the right career path for you. Next, obtain your insurance adjuster license(s) and complete any necessary pre-licensing courses. Then, gain adjuster training and build your independent adjusting business. Finally, start applying for jobs and gaining experience in the field.
