The annual salary of an insurance claims adjuster is a topic of great interest and conjecture among people considering a career in claims.
Many people have heard through the grapevine that insurance claims adjusting is a money tree – either from their girlfriend’s brother or the gentleman who fixed your roof. And the money tree is just sitting there, flowering with Benjamins, waiting for any newbie with the inside scoop to pluck it. And, as an added benefit, you won’t have to work at all!
Then there’s the rumor that claims adjusters make next to nothing and that adjusting is a dead-end or low-level employment on the other side of the money tree story.
So…how much money does an insurance claims adjuster really make?
There is no one-size-fits-all solution in this field, as there is in many others. However, a closer examination of the data reveals a few hints. As of May 2019, the most recent data available from the US Department of Labor provides the most comprehensive picture of wage/salary figures for claims adjusters, examiners, and investigators.
The top 10% of claims adjusters made more than $100,000 a year. The lowest 10% of adjusters were paid just over $40,000 per year. This appears to be a significant disparity for a single occupational category. So, what’s the deal? Who’s at the top…and who’s at the bottom?
Different Types of Claims Adjusters
Staff adjusters, who are paid employees of an insurance carrier, and independent claims adjusters, who are independent contractors working for Adjusting Firms, are the two sorts of adjusters in general. This initial distinction has an impact on both pay structure and the types of claims handled, which range from worker’s compensation to multimillion-dollar commercial properties.
Staff adjusters often make less money than independent adjusters, and in some circumstances significantly less money. A suitable wage range for a career staff claim adjuster is $38,000-$70,000. Staff adjusters start out with a starting salary of around $40,000.
Staff adjusters, on the other hand, have several advantages that independent adjusters do not. Standard work perks, such as insurance, vacation and sick leave, and corporate equipment, are frequently provided to them. An independent adjuster is in charge of all of these things.
Independent adjusters, on the other hand, might earn much more than $100,000 in a good year, especially if they handle disaster claims. Adjusters, for example, made $65,000 to $100,000 in a single month during the peak of the 2017 hurricane season.
It’s also worth mentioning that independent adjusters are free to work whenever and wherever they want. They are, after all, self-employed contractors. This makes it even more difficult to assess “In the conventional definition of the phrase, a “salary” is a sum of money paid to an employee. Some adjusters we know work a year-round schedule, but many others don’t “With the goal of taking a few months off, “make hay while the sun shines.” The following year, the same adjusters might select the reverse, or take more time off, or split the difference. Salary isn’t a set sum that rarely fluctuates for independents.
This is why determining a normal yearly wage for independent adjusters can be challenging. However, the takeaway here is that people who choose to work as independent adjusters have a lot of potential.
Staff adjusters can certainly make a decent living. As the industry, and its ambitions, ebb and flow, the opportunities for independent adjusters can be a little more fascinating.
Is insurance adjuster a stressful job?
The job of a claims adjuster is extremely stressful because it entails numerous high-demand duties. However, if you put in the effort and attention, the benefits significantly outweigh the job’s difficult requirements.
How do I become a claims adjuster in California?
Follow our step-by-step instructions below to obtain your California insurance claims adjuster license. We’ve also included details on how to renew your California adjuster’s license and what reciprocity means for California adjusters, so you’ll have everything you need to get and keep your license.
Are you not a Californian? To learn more about earning your nonresident license, go to the CDI Licensing Guide.
Please be aware that California does not grant reciprocal licenses to adjusters who are licensed in their home state or have a Designated Home State license. If you want to work as a claims adjuster in California, you must first obtain a license.
#1: Meet the Basic Requirements for the California Adjuster License
Make sure you meet California’s fundamental standards before you begin the process of obtaining your resident adjuster license.
- Have two years of certified insurance adjusting experience (equivalent to 4,000 paid hours)
If you’ve been convicted of a crime involving dishonesty or breach of trust, you’ll need to fill out a 1033 Application for Written Consent and wait for the state to approve it before your application can be considered.
It’s time to plan how to ace the California Adjuster state test if you meet these basic prerequisites.
#2: Prepare for the California Adjuster License State Exam
While the state does not need a pre-licensing training, we strongly advise you to complete the AdjusterPro California Adjuster Exam Prep Course to ensure you are fully prepared to pass the state exam.
Our training has been meticulously created and is updated on a regular basis. You can print reference materials, take practice tests, and even design your own quizzes in our online classroom to help you with subjects you’re having trouble with. It’s exam time once you’ve consistently scored 90% on your practice tests and passed all of the quizzes with flying colors!
#3: Process and Submit Fingerprints
All unlicensed applicants in California must submit their fingerprints for a background check. To help speed up the application process, we recommend having your fingerprints done before you take your exam.
You can have your fingerprints processed and submitted through Accurate Biometrics before to your exam, or you can get fingerprinted on the day of your exam at local PSI Testing Center.
The California Department of Insurance (CDI) Fingerprinting Requirements page has all the details and alternatives for fingerprinting.
#4: Register for and Pass the California Adjuster License State Exam
PSI is where you can register for and take your state exam. Select 7777 Pre-Licensing Waived from the drop-down option when asked to choose a pre-licensing provider (because pre-licensing is not required for this license).
You’ll have 158 minutes to complete the exam, and you’ll find out if you passed or failed right away.
Do claims adjusters work from home?
Work from home claims adjusters perform the same duties as in-house adjusters, with the exception that they work from home. They examine and evaluate insurance claims to ensure that they are correct and genuine. As a work-from-home claims adjuster, you’ll be responsible for processing medical, vehicle, and property insurance claims using specialist software. You must be familiar with the specifics of each type of policy and properly assess client coverage. Examining and researching claims, interviewing policyholders, determining culpability, and providing financial projections are some of the other responsibilities. You could also help with assessing settlements, processing claim payments, managing necessary papers, and filing essential materials.
Do you need a degree to be a claims adjuster?
A combination of related education and on-the-job experience is required of insurance adjusters. Employers want to recruit people with a high school diploma or above. Chartered Insurance Professional (CIP) and Fellow Chartered Insurance Professional (FCIP) are two designations offered by the IIC (FCIP).
What do claims adjusters do?
Insurance claims are evaluated by claims adjusters, appraisers, examiners, and investigators. They determine whether or not an insurance company is required to pay a claim and, if so, how much it must pay.
Duties
Typically, claim adjusters, appraisers, examiners, and investigators do the following:
Depending on the type of insurance firm they work for, claims adjusters, appraisers, examiners, and investigators have different responsibilities. They must be well-versed in the insurance policies offered by their organization. Workers in property and casualty insurance, for example, must be familiar with housing and building expenses in order to correctly assess damage from floods or fires. Workers in the health insurance industry must be able to discern which treatments are medically required and which are not.
Adjusters examine claims for property damage or personal injury to decide how much the insurance company should pay. They might look at a house, a business, or a car.
Adjusters interview claimants and witnesses, check the property, and conduct further research, such as reviewing police reports. Other workers, such as accountants, architects, construction workers, engineers, lawyers, and physicians, may be consulted to provide a more expert assessment of a claim.
Adjusters compile data, such as images and statements, which can be written or captured on audio or video, into a report for claims examiners to analyze. The adjuster negotiates with the policyholder and settles the claim when the examiner approves it.
Adjusters collaborate with attorneys and expert witnesses to defend the insurer’s position if the claimant opposes the outcome of the claim or the settlement.
Some public adjusters also act as claims adjusters. Claimants who do not want to rely on the insurance company’s adjuster frequently hire them. Adjusters working for insurance firms have one goal: to save as much money as possible for the company. A public adjuster’s goal when working for a claimant is to get the claimant the most money feasible. They are compensated based on the amount of the settled suit.
The cost or value of an insured item is estimated by appraisers. Auto damage appraisers make up the majority of appraisers that work for insurance companies and independent adjustment firms. They assess damaged vehicles following an accident and estimate repair costs. This information is then sent to the adjuster, who calculates the projected repair costs and includes them in the settlement.
After claims are submitted, claims examiners look over them to make sure claimants and adjusters followed the rules. They may assist adjusters with complex claims or when a natural disaster hits and the number of claims increases, for example.
Examiners for health insurance companies examine medical claims to determine whether the charges are acceptable in light of the diagnosis. They authorize proper payment, deny the claim, or refer the claim to an investigator after reviewing it.
Life insurance examiners look into the reasons of death, paying special attention to accidents because most life insurance companies give extra benefits if a death is caused by an accident. Examiners may also check new life insurance policy applications to ensure that the applicants do not have any major ailments that would make them difficult to insure.
Insurance investigators investigate claims where the firm suspects fraud or criminal conduct, such as arson, staged accidents, or unneeded medical treatment. Insurance fraud charges range in intensity from exaggerated claims of automobile damage to complex fraud schemes. Surveillance is a common task for investigators. In the instance of a fraudulent workers’ compensation claim, for example, an investigator may surreptitiously observe the claimant to see if he or she does anything suspect based on the injuries claimed.
How much does a progressive claims adjuster make?
The average annual pay for a Progressive Claims Adjuster in the United States is $43,961, which is 20% less than the national average.
245 data points were collected directly from employees, users, and previous and present job adverts on Indeed in the last 36 months to provide salary statistics.
Please keep in mind that all salary amounts are estimates based on Indeed submissions from third parties. These numbers are provided to Indeed users solely for the purpose of making broad comparisons. The minimum pay varies by jurisdiction, therefore you should check with your company for exact income figures.
Work Environment
The majority of claims adjusters, appraisers, examiners, and investigators are full-time employees. They frequently operate outside the office, checking properties for which insurance claims have been filed, such as cars and buildings that have been damaged.
How to Become a Claims Adjuster, Appraiser, Examiner, or Investigator
Entry-level claims adjusters, examiners, and investigators normally need a high school certificate or equivalent, however certain roles demand a bachelor’s degree or insurance-related work experience. Auto damage appraisers usually have either a postsecondary nondegree certificate or employment experience identifying and evaluating the cost of automotive repairs.
Pay
In May 2020, the average yearly wage for claims adjusters, examiners, and investigators was $68,270.
In May 2020, the typical annual wage for insurance assessors specializing in auto damage was $65,550.
Job Outlook
Employment in general
It is expected that the number of claims adjusters, appraisers, examiners, and investigators will decrease.
From 2020 to 2030, the rate of increase will be 3%.
Despite the decline in employment, an average of 25,200 openings for claims adjusters, appraisers, examiners, and investigators are expected each year over the next ten years.
All of those positions are predicted to be created as a result of the need to replace workers who shift to other occupations or leave the workforce for other reasons, such as retirement.
More Information, Including Links to O*NET
Additional resources, such as O*NET, a source on key characteristics of workers and vocations, can help you learn more about claims adjusters, appraisers, examiners, and investigators.
How much does a claims adjuster make at Liberty Mutual?
In the United States, how much does a Claims Adjuster make at Liberty Mutual Insurance? The average annual income for a Liberty Mutual Insurance Claims Adjuster in the United States is $58,167, which is 6% higher than the national average.