Breaking Into The Insurance Adjusting Field: A Beginner's Guide

Becoming an insurance adjuster can be a great career choice for those who enjoy investigative work, crunching numbers, and negotiating settlements. It is a stable and rewarding career with excellent earning potential. The path to becoming an insurance adjuster varies depending on your location and career goals, but here is a general guide to get you started:

Firstly, ensure you meet the basic requirements. In the United States, this typically includes being at least 18 years old, holding a valid driver's license, possessing proficient reading and writing skills in English, and having the ability to navigate and perform tasks in diverse settings.

Secondly, consider your education. While a high school diploma or GED is the minimum requirement, some employers may prefer candidates with an associate's or bachelor's degree, especially in business or a related field. Obtaining a degree can set you apart from other candidates and provide valuable knowledge and skills.

Thirdly, obtain the necessary licenses. Most states require insurance adjusters to be licensed, so check your state's requirements and complete any necessary exams or applications. If you plan to work in multiple states, look into obtaining reciprocal licenses.

Next, gain industry experience. Consider entry-level positions or internships at insurance companies or independent adjusting firms to learn the ropes and build connections. This will help you develop the skills and expertise needed to excel in your career.

Finally, build upon your skillset. Successful insurance adjusters possess strong analytical, communication, interpersonal, math, and time management skills. Proficiency in industry-specific software and claims management systems is also advantageous.

Remember, the path to becoming an insurance adjuster is not one-size-fits-all, so be sure to research the specific requirements for your desired career path and location.

Basic requirements: Be 18+, have a driver's license, own a vehicle, and have proficient English skills

To become an insurance adjuster, there are some basic requirements that you need to meet. These requirements are important and necessary before you can move on to the next steps of becoming an insurance adjuster. Here are the four basic requirements that you need to fulfil:

• Be 18 or older: This is a standard requirement across the United States. You must be at least 18 years old to become an insurance adjuster. This is to ensure that you are legally an adult and can enter into contracts and be held responsible for your work.
• Have a valid driver's license: As an insurance adjuster, you will need to travel to different locations to investigate claims and meet with clients. Having a driver's license is essential for this role, as it allows you to legally operate a vehicle and get to where you need to go.
• Own a personal vehicle: In addition to having a driver's license, it is beneficial to own your own vehicle. This gives you the freedom and flexibility to travel to different locations as needed. It is important to note that some companies may require you to use your own vehicle for work, so having reliable transportation is crucial.
• Proficient English skills: Effective communication is essential in the role of an insurance adjuster. You will need to be able to read, write, and speak English fluently. This includes having strong communication skills, both oral and written, to interact with clients, insurance companies, and other professionals. Proficiency in English ensures that you can clearly convey complex insurance terms and navigate diverse environments.

These basic requirements are the foundation for becoming an insurance adjuster. By fulfilling these requirements, you can then move on to the next steps, which include completing any necessary education, obtaining licenses, gaining experience, and developing the skills needed to succeed in this rewarding career.

Education requirements: A high school diploma or GED is the minimum. A degree is advantageous

To become an insurance adjuster, you need to meet the minimum education requirement of a high school diploma or GED. However, having a degree can be advantageous when applying for these roles.

While a degree is not required for licensing, most claims adjusters do possess a college degree, and employers may prefer candidates with a degree in business or a related field. A degree in insurance is especially appealing to prospective employers. This additional education can help set you apart from other candidates and demonstrate a proficient understanding of the profession.

If you are considering a career as an insurance adjuster, it is worth noting that you can still enter the field with just a high school diploma or GED, especially if you have prior work experience that has equipped you with valuable skills and insights.

Licensing: Check your state's requirements. Take a pre-licensing course and exam

To become an insurance adjuster, you'll need to obtain an insurance adjuster license. The requirements for this vary from state to state, so it's important to check what your specific state mandates.

In general, however, you will need to take a pre-licensing course and pass a licensing exam. Pre-licensing courses are designed to prepare you for the licensing exam, and they cover topics such as the role of an adjuster and the insurance industry. These courses can be taken online or in a classroom, and they typically include practice exams and other resources to help you prepare.

After completing the pre-licensing course, you will need to pass the state's licensing exam. This exam will test your knowledge of the information covered in the pre-licensing course, as well as your understanding of the insurance industry and relevant state regulations. Some states may also require you to pass a background check as part of the licensing process.

Once you have passed the licensing exam, you can submit your license application, along with the required fees and any necessary documentation. The specific application process and requirements will depend on your state, so be sure to review the instructions provided by your state's insurance department or licensing board.

It's worth noting that even if you live in a state that doesn't require adjusters to be licensed, obtaining a license is still highly recommended. A license will allow you to work in other states and give you a better chance of finding employment with independent adjusting firms or larger companies that operate across multiple states.

Skills: Analytical, communication, detail-oriented, interpersonal, and math skills are key

Analytical, communication, detail-oriented, interpersonal, and math skills are key to a career as an insurance adjuster.

Insurance adjusters need to be able to assess complex information and make sound decisions about insurance liability. They must be able to explain complex insurance terms in simple ways to claimants and interact effectively with other professionals.

Attention to detail is also crucial. Adjusters need to be able to identify fraudulent claims and ensure that all kinds of damages are accounted for at a loss site. Being detail-oriented will help adjusters avoid re-inspections, which can negatively impact their track record.

Handling potentially upset or stressed claimants with empathy and understanding is another important skill for insurance adjusters. Adjusters find themselves in emotionally charged situations with claimants who have suffered heavy damages. Being able to communicate and negotiate in such an atmosphere is highly valued.

Finally, insurance adjusters need math skills to compute settlements and understand detailed financial records. Being proficient in math and having a problem-solving attitude is crucial to success as an adjuster.

Career paths: Staff, independent, or public adjuster? Each has pros and cons

There are three main career paths for insurance adjusters: staff adjuster, independent adjuster, and public adjuster. Each has its own pros and cons, which are outlined below.

Staff Adjuster

Staff adjusters are employed by an insurance company and typically work full-time, receiving a salary and benefits. They enjoy a steady paycheck, employment benefits such as health insurance and retirement plans, and a fixed number of working hours per week. Training and professional development are usually paid for by the company, and staff adjusters may be issued with company laptops and cars. However, staff adjusters tend to earn less than independent adjusters in the long run, have less flexibility in their working hours and the types of assignments they accept, and often have to work overtime. A college degree is also typically required for this career path.

Independent Adjuster

Independent adjusters are contractors who work for one or more insurance adjusting firms, and they are usually paid on a per-claim, hourly, daily, or adjuster fee schedule basis. They have the freedom to choose who they work for and the kind of assignment or location, and they often earn more income than staff adjusters. They also have more downtime for vacations between assignments and more employment options, as adjusting firms often hire based on experience and training rather than college degrees. However, independent adjusters lack the stability of a steady income and benefits such as health insurance and retirement plans, and they have to pay for their own computers and other required equipment, including transportation costs.

Public Adjuster

Public adjusters work directly for policyholders or customers and are typically hired when a person or business does not feel that their insurance settlement is fair. They are completely independent of any company or firm and have the freedom to make their own schedules. They are paid based on a percentage of the claim, which can result in a high income. However, public adjusters are responsible for finding their own work, and their income may be inconsistent. They also have to build their business from scratch, which can take time and effort.

Frequently asked questions