How much do the claims adjusters make?

by rhosummmer » Tue Apr 28, 2009 03:16 pm

Adjusters enjoy a significant position in the insurance industry since the insurers and the policyholders are equally dependent on them. They are responsible for the investigation during the claims handling procedure. They inspect the actual situation after a policyholder files a claim and determine the appropriate settlement amount to be paid by the insurance company for the losses or the damages. Although it's a lucrative career option, it's difficult to figure out the exact earning of an insurance adjuster since it depends on several factors.

How the insurance adjusters work?

The income of an insurance adjuster depends on how he works. According to the mode of the work, insurance adjusters are classified into:

Staff adjusters - Staff adjusters work as salaried employees of an insurance company. Their average annual salary starts from $26,000 and can range as high as $80,000 or even more.
Independent adjusters - The independent adjusters work as contractors for the adjusting firms. They don't work as salaried employees, and don't have any fixed working hours. The more effort they put into their work, the more can be their income.
Public adjusters - They work as separate entities on behalf of the policyholder or the insured.

Area name	Employment	Annual mean wage
National	$2,63,810	$61,110

According to BLS data

Factors influencing an insurance adjuster's income

Several factors influence the income of insurance adjusters as mentioned below:

Location - Adjusters can earn more if they work in the metropolitan areas, due to the increased amount of risk factor. Auto accidents are more frequent in busy parts of the town. California, Texas, Pennsylvania, New York, Florida are the chief states which offer the highest scope for employment in this occupation. The top paying states for the insurance adjusters are Distrit of Columbia, Louisiana, New Jersey, Connecticut and Alaska.
Frequency of the accidents - Accidents or mishaps are unpredictable. Independent adjusters handling the disaster related claims usually face very tough competition in their career. Their income can soar when disasters happen and lots of insurance claims pour in. However at other times, they may have to struggle a lot.
Number of claims closed - Personal efforts also matter a lot when it comes to increasing the income for an insurance adjuster. The pay of an independent or public adjuster depends on the number of settled claims per day. Thus, the more the number of closed claims for an adjuster, the more will be his income.
Type of claims handled â€“ Whether it be a property claim or for worker's compensation, the type of claims handled by an insurance adjuster influences his earning. Adjusters handling the auto claims or multi-million dollar commercial properties have more scope for earning. Independent adjusters handling catastrophe claims might earn a lot for a few months and then run dry when there is scarcity of claims or when the claim amount is less.
Experience - Senior adjusters can earn more due to their knowledge and experience about the insurance industry, than the amateur claim adjusters.
Company or insurer - The income of a claims adjuster is also influenced by the insurance company or the insurer he works for. Insurers and hiring firms usually have their own set of pay structure according to which the adjusters get paid.

Who can become an insurance adjuster?

Anyone can work as an insurance adjuster, if he has got the license and is above 18 years of age.
Educational background doesn't relay matter for a claim adjuster. However, insurers usually prefer individuals with a sound educational background, and a college degree.
Individuals willing to handle worker's compensation or liability claims should preferably have legal knowledge.
Convictions or felonies may count against an individual applying for his adjuster license.
Experience is usually not asked for when you go out to get an adjuster's license. However, reputed insurers usually don't appoint fresher as adjusters. Individuals with around two years of experience in the related insurance adjusting field are preferred.

How to become an adjuster?

To be an insurance adjuster, you need to have the license from your state since it lends you professional credibility in the industry.

Contact your State Department of Insurance to know the licensing laws in that particular state.
Find out whether the state recognizes licensure from other state. It's advisable to obtain a license from the home state initially. Adjuster license from Texas or Florida offers a wider range of operation since it's accepted in other states as well. Thus, it's advisable to get those licenses subsequently. If the home state doesn't license claim adjusters, the Texas or Florida license will act as the replacement 'home' license.
Before you sit for the licensing exam, you need to study for the state exam. You can take a pre-licensing course or an exam study program.
Depending on the state laws, you might need to pay a fee for licensing and finger-printing. Some states may even ask for pre-licensing experience.
After you pass the exam, you need to apply for the license. For that you may need to choose the line of insurance you would like your license to cover, like property, casualty, commercial, auto, all lines etc.
Thereafter, you need to seek employment with an insurer. Reputed insurance companies usually don't appoint inexperienced adjusters. You need to work with a local firm that hires claim adjusters in the initial period. You can even try to find job openings for independent adjusters in the National Association of Independent Insurance Adjusters (NAIIA) directory.

You can update your professional portfolio gradually by undergoing other training courses like the Property Technical Certification (PTC), Xactimate 27 training, Adjusting 101 etc. Advanced certifications and experience will bring in increased pay and better opportunities.

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Total Comments: 57

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Posted: Tue Sep 04, 2012 05:15 am Post Subject: damage appraiser

Hello all! Need some direction in this job field please!!!! I've read the posts from this thread, beginning to last. A thread thats a couple years old I hope can still provide me with some type of assistance.

First off, I'm from California, living in los angeles. There are trade schools here that teach auto body, and damage estimating as well.
I am confused! I really really want to become a damage appraiser ( I have a passion for cars, can be around them all day long), and I dont know if I should continue with my regular college schooling to obtain a Associates/Bachelors degree and THEN find a job at an insurance company, OR......... go to my trade school, get experience, recieve my AA, get ASE certified, and then apply to some companys or independent body shops as a auto damage appraiser????
PLEASE NEED YOUR INPUT!! I WANT this as a career. Would like to be set on the right path as oppose to wasting my time in schools.

Posted: Tue Sep 04, 2012 05:16 am Post Subject: damage appraiser

Posted: Tue Sep 04, 2012 05:20 am Post Subject:

Hello all! Need some direction in this job field please!!!! I've read the posts from this thread, beginning to last. A thread thats a couple years old I hope can still provide me with some type of assistance.

First off, I'm from California, living in los angeles. There are trade schools here that teach auto body, and damage appraisal as well.
I am confused! I really really want to become a auto Claims adjuster/ damge appraiser ( I have a passion for cars, can be around them all day long), and I dont know if I should continue with my regular college schooling to obtain a Associates/Bachelors degree and THEN find a job at an insurance company, OR......... go to my trade school, get experience, recieve my AA, get ASE certified, and then apply to some companys or independent body shops as a auto damage appraiser????
PLEASE NEED YOUR INPUT!! I WANT this as a career. Would like to be set on the right path as oppose to wasting my time in schools.

Posted: Tue Sep 04, 2012 01:52 pm Post Subject:

I suppose it's your choice. You don't necessarily gain an advantage by taking "trade school" classes that you have to pay big bucks for. Insurance companies generally prefer to hire (a) adjusters with lots of actual field experience (min 3-5 years) or (b) younger folks (early 20s to 30s) with no experience who can be trained in a particular method of handling claims.

Figure out if you are (a) or (b). Then look for "entry level" positions with companies like Infinity, Mercury, GEICO who have a history of hiring newbies.

I would encourage you to continue working toward a BA degree -- full time or part time -- just don't stop altogether. That makes it much harder to go back.

I know, it took me ten years to get back to school to complete my BA in two years (plus summer and intersession classes). I continued on to get my MA immediately after that. Then said, "When I get a teaching postion, I'll go back and get my PhD." That was 24 years ago -- and no PhD today. Not that I miss it, but . . .

Posted: Tue Sep 04, 2012 04:53 pm Post Subject:

Thanks Max,

I have also spoken to a couple people as well, and regular schooling seems to be the way to go as well. I feel like If i ditch my schooling (BA degree) and opt for the trade school route, I will atleast have something to fall back on anywhere I choose to go.

So in terms of these entry level positions your talking about at insurance companies, they would in essence "train" me to become a claims adjuster/damage appraiser? ( out on the field, assesing cars, paperwork, etc, etc?). OR.... literally start off on the bottom just doing other peopls paperwork ?

Posted: Wed Sep 05, 2012 12:47 am Post Subject:

they would in essence "train" me to become a claims adjuster/damage appraiser?

Yes! Most of these positions are in auto insurance. But making the transition to homeowners and other lines would probably happen after a few years.

Some of the positions begin with simply handling claims in the office, where showing your aptitude for solving issues will get you noticed and bumped into the field. Others are direct hire into field work, after a few months of classroom and supervised training under the wing of an experienced adjuster.

Some insurance companies, however, require a BA -- in any field -- simply because it demonstrates a certain level of work ethic and accomplishment. So I wouldn't turn my back on that degree. You may never need it, but it is better to have it and not need it, than to need it and be 3 units short of the diploma.

Posted: Wed Nov 07, 2012 04:41 am Post Subject: ?

I have been cat adjusting with a friend in Ike. I had no license came with to help. worked for 5 weeks. learned insurance macros and got systems down. Had a manager of vendor pull me off to side asked my goals. In short told him couldn't do at the time. Told me that when i decided to do that id be a fat-cat. I would hit the ground running. i have 25yrs experience in construction industry primary commercial with superintendent experience. This year i took off to work for little or nothing for my church on a commercial bldg. purchase and ran demo/remodel converting to church. I pretty much spent my savings doing this. been called by independent company to work for them for sandy. i loved doing the adjusting when did it. is there a way to do if low on funds. Im looking of turning down for now a 80k/yr job as a supt. in large commercial company for this. any ideas thoughts suggestions.??

Posted: Wed Nov 07, 2012 09:41 am Post Subject:

any ideas thoughts suggestions.??

Try writing complete sentences. Like the ones in the Bible that have subjects, verbs, direct objects, etc.

Do whatever you think will please God, and is in His will.

This year i took off to work for little or nothing for my church on a commercial bldg. purchase and ran demo/remodel converting to church. I pretty much spent my savings doing this.

God doesn't necessarily call us to do things like this, and not provide for us in return. We sometimes get our will mixed up with his, and then blame Him when things don't go the way we would prefer.