What You Should Know Before You Become An Insurance Claims Adjuster
Charlene Demers
Are You Ready To Become An Insurance Claims Adjuster? Here's What You Need To Know Before You Make The Decision: a blog discussing the job of claims adjusters and what they do
What do you know about being an insurance claims adjuster? What is it that they do precisely? Is it hard to become a claims adjuster? What kinds of claims adjusters are there, and more importantly, what kind of training do I get if I decide to become one? So many questions, right? There will be no more wondering after you read this blog post.
What do Claims Adjusters do exactly?
Claims adjusters are the people who work for insurance companies. They represent the company and make sure everything goes according to plan. Without them, the insurance industry would collapse because they are the ones who help victims after an accident or a crime.
A claim is when someone or something is damaged or stolen. The victim then calls their insurance company and explains what happened. After this step, a claims adjuster comes in and does their job. Claims are where things get interesting, though, because there are so many different types of claims, and each insurance company has its own rules about what can happen to the claim.
For example, you have to report a car accident within 24 hours of the incident; otherwise, your chances of getting any compensation to go down significantly.
Working as a claims adjuster is a good option if you’re looking for a career requiring no formal education and room for growth. You can expect to earn between $45,000 and $55,000 per year, depending on your experience level.
In general, claims adjusters investigate and review insurance claims by confirming the validity of a claim, taking measurements and photos of damage or injury, and determining the amount of loss based on their findings. They then negotiate with claimants to agree on the amount of compensation that the insurance company will payout.
What types of insurance adjuster positions are out there?
Many people think that all insurance is the same — just money paid out against risk — but there are many different types of insurance with many different types of risks covered. That’s why many different types of claims adjusters specialize in one type.
Here are some examples:
- Auto claims adjusters handle accidents involving cars and trucks
- Property and casualty adjusters deal with damage to buildings and other structures resulting from fire, theft, or other causes not involving vehicles
- Health insurance claims adjusters review medical bills and look
Is it hard to become a claims adjuster?
It’s not hard to become a claims adjuster. I have never met an “adjuster” that wasn’t one before being an adjuster.
I’m kidding. It takes time, dedication and patience to become a claims adjuster. However, it is not as hard as some make it sound.
A few months ago, I was doing a question-and-answer session with an audience of people who wanted to know more about becoming an insurance adjuster. A woman in the front row unlocked her phone, typed something into Google, and asked me this question: “What percentage of insurance adjusters fail in their first year?”
The answer is 25 percent.
That’s how many newbie insurance adjusters wash out after one year — because they don’t know what they’re getting themselves into when it comes to the lifestyle and workload of being a claims adjuster.
But here are three things you can do today to start your journey toward becoming a claims adjuster: get some experience — any experience — in customer service or sales.
It’s hard to become a claims adjuster because insurance carriers are picky about who they hire for this position. They want someone with a lot of experience, so you’ll have to work your way up to this job.
If you think you might be interested in the field, you should start by getting an entry-level job in the insurance industry. Most people start as customer service representatives, but if you can find a job as a trainee claims adjuster, that would be ideal.
You’ll need to get some on-the-job training before becoming a full-fledged claims adjuster.
What kinds of claims adjusters are there, and more importantly, what kind of training should I get if I decide to become one?
Claims adjusters do not need a license to make claims in most states. Most adjusters have to take an exam to prove they know what they are doing, but this is usually not very difficult. Most states will allow an adjuster to work with a temporary permit for 30-90 days before the adjuster must pass the exam and obtain a permanent permit.
An adjuster must get the proper training and education before going into the field because adjusters who do not know what they are doing will make mistakes and create problems. Unfortunately, because there is no licensing requirement for claims adjusters in most states, many insurance companies are willing to hire inexperienced people and train them “on the job”, meaning that someone who has never worked as an insurance adjuster may be allowed to handle real cases without any previous training or experience.
This practice creates a lot of problems. As mentioned above, inexperienced people make mistakes. Making mistakes can cause you to lose your job or get sued by policyholders who are angry about handling their claim. If they sue you because you made an error on their claim, then your actions could affect the financial stability of your employer (the insurance company).
There is no such thing as a simple claim. Every insurance claim is unique and encompasses many different aspects. Each type of insurance (home, auto, business, etc.) has its requirements for assessing the damage. Each state has its insurance laws and regulations. Even each company has its way of adjusting claims.
Adjusters need to be well-versed in their specific types of claims (auto adjusters can’t adjust homeowners’ claims, for example) and keep up with new laws or changes to old ones. It’s a big job that requires a lot of talent and skill, but it’s not necessarily a hard job — adjusters have to be really good at what they do.
Takeaway: You can make the right decision by understanding what’s involved.
Takeaway: Claims adjusting can be a rewarding career.
Takeaway: Becoming a claims adjuster requires a lot of training.
To truly understand if claims adjusting is suitable for you, visit a few adjuster schools or a life insurance staffing agency like Questpro and talk to some practicing claims adjusters. They can provide you with a realistic view of the industry, the pros and cons, and the outlook for the future. But don’t get too carried away on day one; it still takes plenty of training before you can work independently as an adjuster. Start by getting your certification first.
In the end, being a claims adjuster can be both emotionally and physically taxing. But if you still think that claims adjusting is suitable for you, take the above considerations into account to prepare yourself for a smooth transition. Remember that you’ll succeed with hard work and dedication to your goals as long as you follow your heart.
