This question of how much does a claims adjuster make often comes to the mind of those individuals who are willing to become a claims adjuster. A claims adjuster is also known as an insurance adjuster, whose main function is to investigate or settle insurance claims to estimate the insurance company’s liability to provide coverage for injuries and damages.
The claims adjuster have a few different types, therefore their salaries also differ from each other. In the united states, the salaries of different claims adjusters vary from state to state. In this guide, we will guide you on how much a claims adjuster makes. So, keep reading…
How Much Does A Claims Adjuster Make
According to the U.S. Department of Labor Statistics, as of May 2021, the average salary for a claims adjuster was $70,960, and the average hourly wage for a claims adjuster worth $34.11.
As types of claims adjusters vary from each other, their average annual salaries also vary. Some claims adjusters make more money and rank at the top.
Whereas few other claims adjusters make less money and remain on the bottom. The top 10% of claims adjusters made $101,000 annually, and the lowest 10% made $41,000 annually.
What Is A Claim Adjuster
A claim adjuster is a person who claims to determine whether the insurers need to pay for the injuries and damages or not.
In a specific case if they need to pay for the damages or injuries, then how much do insurers have to pay? For instance, if a sudden car accident happens to you, you will file a claim for the coverage of vehicle damage.
In that case, your insurer will assign a claims adjuster to verification of your vehicle damage and provide coverage for it.
The main function of a claims adjuster is to investigate different types of claims such as insurance claims which result from car accidents.
Different claims adjusters take different steps to investigate the claims. For example, car insurance claim adjusters take the following steps while investigating a claim:
Review The Detail Of Your Policy And Claim
The first step that most claims adjusters take is reviewing the complete detail of the accident with a claim. The claims adjusters also review your policy so that they determine the exact amount of coverage for your damage or loss.
Collect Information From Involved People
The claims adjusters also interview the people who were involved in the accident like the driver and other witnesses. They collect different statements from these people and also review the place of the accident.
The claims adjusters collect pictures of accidents, police reports, and several other pieces of information which is related to the accident.
If the claims adjuster determines that your damage is covered, they will coordinate with you and provide coverage for damage or loss.
How To Become A Claims Adjuster
Typically, the people who choose to become a claims adjuster as their career path, need a high school diploma or equivalent, although a bachelor’s or an associate’s degree and experience in insurance-related work are also preferred to become a claims adjuster. Passing a licensing exam is also essential for becoming a claims adjuster.
Claims adjusters have to complete their training hours because this is the requirement of a few states. During this training, the claims adjusters also have to complete their education.
This will help them to keep their license. For example in California, according to license terms and conditions licensed claims adjusters have to complete their twenty-four hours of education.
In the United States, not every state requires a license for becoming a claims adjuster. These states included Missouri, Colorado, Wisconsin, Illinois, Virginia, Iowa, Tennessee, Kansas, South Dakota, Maryland, Pennsylvania, Massachusetts, Ohio, Nebraska, North Dakota, and New Jersey.
Is It Worth Being A Claims Adjuster?
Yes! being a claims adjuster is worth it. Because this is the career which pays you most. But it is hard to become a claims adjuster because it requires a lot of time and work.
According to the Bureau Of Employment, most people in the united states prefer to become an insurance claims adjuster because they consider it the most profitable career.
If you are willing to start your career as a claims adjuster, you will have to work hard and this will create stressful conditions for you. You will have to work from bottom to top being a claims adjuster.
For example, if you are an entry-level claims adjuster, you may have 200 to 300 cases and need to pay attention equally to each case.
If you are in crisis and have a lot of cases to deal with, you will be stressed. And being a claims adjuster you will have to face anxiety or stress. T
hat’s why most people quit their careers as claims adjusters after one or two years. But the persons who gain success as claims adjusters earn a lot of money.
How To Talk To An Insurance Claims Adjuster
Talking to an insurance claims adjuster is one of the most important points to consider for you. Because there are some important things that you should say to your insurance claims adjuster but there are a few other things that you should avoid while talking to your insurance claim adjuster.
- The insurers or claims adjusters only work for their company’s interest, not their clients. You should keep in mind that they tried their best to convince their clients to get the lowest amount of money in lower time. The other things that you need to do are as follows:
- You need to keep yourself peaceful and polite while talking to your insurance claims adjuster. You may be furious about the accident or injuries but you should remain calm during the conversation.
- You should have a clear identification of the claims adjuster before starting a conversation. For example, you must know the name, phone number, and email address of the claims adjuster, and the name of the insurance company or business.
- You should share only your basic and limited information with your insurance claims adjuster rather than your personal information. You can share your name, phone number, and email address with the claims adjuster.
- You should give the basic information about the accident to your claims adjuster. You don’t need to give a detailed description of damages or injuries to your claims adjuster.
Negotiation Of A Settlement With the Claims Adjuster
Settlement negotiations with an insurance claims adjuster may be a challenging and complex process. But here we are going to describe a few steps that assist you in negotiating a settlement.
- Before settlement negotiation, you must have complete detail of your claim. For example, you need to review your policy, collect pieces of evidence and complete your documents.
- Make a negotiation strategy for your claim. This means you need to set your settlement range, concessions, and opening offers in advance.
- Set your goals before negotiation. You should select a fair amount of settlement and provide pieces of evidence.
- You should keep yourself calm and professional during the whole process of negotiation. You should not get emotional or make any threats while the negotiation process.
- You should listen to your, adjuster, carefully and provide relevant pieces of evidence to gain the trust of your claims adjuster. So that your claims adjuster feels free to help you.
- You should remain persistent during the negotiation process because it is a long process and take some time.
What Are The Types Of Claims Adjusters?
A claims adjuster is a person who investigates insurance claims, estimates coverage, and inspects property damage and documents.
A claims adjuster is also responsible to determine the exact amount of a claim which is provided to cover the loss and damage under a contract.
Typically there are three types of claims adjusters, Independent, company or staff, and public claims adjusters.
Independent and company or staff adjusters generally represents the insured individuals, whereas public insurance claims adjuster represent the insurers.
In the United States, claims adjusters are in demand because almost thirty states or more need licensure claims adjusters.
Independent claims adjusters
Independent claims adjusters are considered self-employed adjusters. They adjust claims on the behalf of their insurers. Typically the earning of independent claims adjusters is higher than staff claim adjusters and public claim adjusters.
Staff Claims Adjusters
Company or staff claims adjuster specifically working for their insurers or affiliates. They are not responsible for adjusting the claims of other individuals. They received salaries from their employers.
Public Claims Adjusters
Public claims adjusters are persons who work on the behalf of an insured individual. Typically they work for compensation or for any other valued thing. Public claims adjuster works under an insurance policy.
For example, if a person hires a public claims adjuster, he will directly contact him to provide coverage or other benefits.
What Kind Of Adjuster Makes The Most Money?
Typically Independent claims adjusters make the most money. Because they work on catastrophic claims and can earn $100,000 annually.
Most of the claims adjusters who have the license of working in multiple states and during several natural catastrophes can make more than $100,000 annually.
The salaries of claims adjusters vary depending on their specific types. According to Indeed, the average salary of a claims adjuster in the united states is $58,814 per year. The report of almost 5.5k salaries of claims adjusters is updated in February 2023.
In the United States, the salaries of claims adjusters also vary depending on the years of experience. The average salary of a claims adjuster who has experience of 10 years is $69,885.
The six to nine years of experienced claims adjusters earned $68,972 and one to two years of experienced claims adjusters earned $54,793 per year.
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