Becoming An Insurance Estimator: Skills And Steps

If you're interested in working in the automotive industry but don't want to become a mechanic or technician, you might consider becoming an insurance company estimator. Insurance company estimators, also known as insurance claims adjusters, are responsible for overseeing insurance claims and verifying the financial responsibilities of each party. This involves checking vehicles for damage, assessing the cost of repairs, and determining whether claims are legitimate.

To become an insurance company estimator, you'll typically need a high school diploma or GED, and some vocational training or a 2-year degree. You'll also need strong communication, analytical, and math skills, as well as proficiency in relevant software. Obtaining a license is also usually required, and maintaining this license through continuing education credits is essential.

Education: A high school diploma or GED is the minimum requirement. An associate's or bachelor's degree can be beneficial

To become an insurance estimator, a high school diploma or GED is the minimum educational requirement. However, possessing an associate's or bachelor's degree can be advantageous and help you stand out among other candidates. Obtaining a degree in a relevant field, such as automotive mechanics, collision repair, business, automotive technology, communication, criminal justice, or management, can provide a strong foundation for this career.

While a high school diploma is the basic requirement, pursuing further education can offer several benefits. An associate's degree can provide more specialized knowledge and skills relevant to the role of an insurance estimator. It typically takes two years to complete and covers essential aspects such as vehicle systems, repair methods, and estimating techniques. This additional knowledge can enhance your understanding of the field and improve your career prospects.

On the other hand, a bachelor's degree can further deepen your expertise and make you a more competitive candidate. Relevant majors for a bachelor's degree include communications, insurance, business, or finance. This additional education demonstrates a strong commitment to the field and can open up more opportunities for career advancement.

It is worth noting that some employers may specifically seek candidates with associate's or bachelor's degrees, especially in the insurance industry. Therefore, obtaining a higher level of education can increase your chances of securing a position as an insurance estimator and potentially lead to more lucrative career paths.

In addition to formal education, gaining practical experience through internships or entry-level positions in auto body shops or insurance companies can be advantageous. This hands-on experience will allow you to apply your academic knowledge, develop valuable skills, and build a strong resume. Remember that a combination of education and experience is often the most appealing to potential employers, setting you on a path toward a successful career as an insurance estimator.

Experience: Gain experience in automotive or insurance settings, with roles in sales, mechanics, or auto body shops

Gaining experience in automotive or insurance settings is a crucial step towards becoming an insurance estimator. While a formal education is important, practical experience in roles such as sales, mechanics, or auto body shops can provide valuable insights and skills that will benefit your career.

Working in sales, for instance, can help develop strong communication and negotiation skills, which are essential when dealing with customers and assessing their needs. Sales roles can also provide an understanding of the automotive industry, including vehicle makes and models, and the ability to upsell or cross-sell products and services relevant to insurance estimation.

On the other hand, roles in mechanics or auto body shops offer a more hands-on experience with vehicles. Mechanics are experts in evaluating and repairing mechanical systems, while auto body shops focus on repairing collision-related body damage and restoring the vehicle's appearance. Gaining experience in these settings can provide a deep understanding of automotive repairs, parts replacement, and collision damage assessment, all of which are crucial aspects of insurance estimation.

Additionally, working in these roles can help develop conflict resolution skills and enhance your ability to perform damage assessments and estimations. Understanding the inner workings of vehicles and the costs involved in repairs can make it easier to calculate labour costs and parts needed for insurance claims.

Furthermore, experience in automotive settings can provide valuable insights into the day-to-day operations of auto repair facilities, including time management and efficient repair processes. This knowledge will be beneficial when assessing the time and resources needed to repair a vehicle after an accident.

By combining formal education with practical experience in these roles, you can develop a well-rounded skill set that will be highly valuable in your career as an insurance estimator. Remember, gaining experience in the automotive or insurance industry is a great way to build a strong foundation for your future career and make informed decisions about your professional path.

Licensing: Complete a pre-licensing course and pass the state exam to obtain an adjuster's license

To become a licensed insurance adjuster, you will need to complete a pre-licensing course and pass a state exam. This process can be completed in a matter of weeks, and most of the requirements can be fulfilled online.

The first step is to determine whether your state licenses insurance adjusters. While most states do, some do not, including Colorado, Kansas, Nebraska, South Dakota, North Dakota, Missouri, Iowa, Illinois, Wisconsin, Tennessee, Ohio, Virginia, Maryland, Pennsylvania, New Jersey, and Massachusetts. If you live in a state that does not require licensing, it is still recommended that you obtain a license, as this will be necessary if you want to work claims outside of your home state. In this case, you can obtain a Designated Home State (DHS) license from Florida.

If you live in a state that does license insurance adjusters, you will need to obtain a license from your home state first. There are several pre-licensing courses available, which can be taken both in-person and online. These courses will prepare you to take and pass your state's licensing exam. In some cases, the course provider may even be able to issue the exam or grant an exemption from it.

The insurance exam will cover both a "national" insurance section and a "state" section. The national section will cover topics such as definitions (terminology) and numbers (dollar amounts and numbers of days). The state section will cover state-specific regulations and topics, which tend to be more detailed and challenging. The exam will be computerized and consist of multiple-choice questions. You will not need to memorize or explain anything, but you will need to know the material well to pass.

Once you have passed the exam, you will need to formally submit your application and pay the associated fees to obtain your license. You may then want to apply for reciprocal licenses in other states, particularly those favored by employers, such as the Gulf Coast and Eastern states.

Skills: Develop strong communication, analytical, and math skills, as well as conflict resolution and negotiation abilities

To become a successful insurance estimator, you will need to develop a strong set of skills, including communication, analytical, and math abilities, as well as conflict resolution and negotiation skills.

Communication skills are essential as insurance estimators regularly interact with multiple stakeholders, such as insurance policyholders, insurance companies, witnesses, customers, agents, and repair facilities. Effective communication ensures that all parties receive clear and timely updates regarding a claim. Strong communication skills also encompass active listening, empathy, and patience, especially when dealing with individuals who have experienced a loss or are filing a claim.

Analytical skills and math abilities are crucial for assessing damage, estimating repair costs, and negotiating settlements. Insurance estimators must be able to inspect vehicles or properties, identify the extent of the damage, and calculate the cost of labour and parts required for repairs. This involves using math skills to determine fair settlement amounts and negotiate with body shops or repair facilities.

Conflict resolution skills are valuable when dealing with conflicting interests or dissatisfied customers. Insurance estimators may encounter situations where claimants dispute their assessment or when negotiating with body shops on repair times and parts usage. Strong conflict resolution abilities help in reaching a mutually agreeable solution.

Negotiation skills are vital when dealing with insurance adjusters, body shops, and repair facilities. Insurance estimators must be able to advocate for fair settlements, negotiate repair costs, and ensure customer satisfaction throughout the process.

In addition to these skills, insurance estimators should also be proficient in using computers and software programs specifically used in the industry, such as Xactimate. Organizational skills and time management are also beneficial due to the multi-faceted nature of the role and the potential for handling multiple claims simultaneously.

Career Path: Choose between being a staff or independent adjuster, considering factors like salary, work hours, and flexibility

When it comes to choosing a career path as either a staff or independent insurance adjuster, there are several factors to consider, including salary, work hours, and flexibility.

Staff Adjuster

Staff adjusters, also known as company adjusters or employee adjusters, are direct employees of an insurance company. They have a consistent workload, handling claims on behalf of a single insurance company. Staff adjusters typically work standard hours and receive benefits such as insurance, vacation, and sick leave. They are provided with the necessary equipment and software by the company, resulting in lower overhead costs. Staff adjusters usually receive a salary, with entry-level positions averaging around $40,000 per year, and most staff adjusters earning between $40,000 and $70,000 annually.

However, one of the drawbacks of being a staff adjuster is the limited autonomy over the claims they handle. They may have less flexibility in their work approach and a lower earning potential compared to independent adjusters.

Independent Adjuster

Independent adjusters (IAs) are typically contracted by third-party claims-handling companies, known as Independent Adjusting Firms (IA Firms), and work as representatives of the insurance company. They have more control over their schedules and can work from anywhere, giving them greater flexibility than staff adjusters. Independent adjusters usually handle claims for multiple insurance companies, providing a greater variety of work.

In terms of salary, independent adjusters are generally paid per claim, and their earning potential is higher if they work on more claims. During peak periods, such as after hurricanes or natural disasters, independent adjusters can earn a significant income, with some making $65,000 to $100,000 in a month. However, it's important to note that independent adjusters may experience inconsistent workloads, with periods of low or no work, impacting their overall income. Additionally, they are responsible for their own equipment and software costs, resulting in higher overhead expenses.

Both career paths have their advantages and disadvantages. If you value a consistent workload, comprehensive support, and employee benefits, a staff adjuster role might be more suitable. On the other hand, if you prioritize flexibility, higher earning potential, and a diverse range of claims, then the independent adjuster path could be more appealing. Ultimately, the decision depends on your personal preferences, strengths, and long-term career goals.

Frequently asked questions