Insurance adjusters handle claims for insurance companies. They may work in car, health, life, or property insurance. They may be staff, independent, or public adjusters.
An insurance adjuster’s yearly pay in the US averages $57,000, however, it depends on several variables.
This article discusses the numerous kinds of insurance adjusters, the variables that affect their wages, their benefits and bonuses, and how to become one.
Understanding the Different Types of Insurance Adjusters
There are three main types of insurance adjusters: staff, independent, and public.
- Staff adjusters work as full-time employees for one insurance company. They handle claims only for that insurer, which are mostly car accident claims. They receive a salary and benefits from their employer.
- Independent adjusters work as contractors for multiple insurance companies or third-party organizations. They handle claims on behalf of the insurers, often in cases of large-scale events or catastrophes. They are paid based on a fee schedule or a percentage of the claim amount.
- Public adjusters work directly for policyholders or customers who have filed insurance claims and want a fair settlement. They are hired by the claimants and are paid a percentage of the settlement amount.
Factors that Influence Insurance Adjuster Salaries
Insurance adjusters’ salaries depend on numerous factors:
- Claim type and size: Complex claims need more time and skill to handle. Property damage claims may need more research and paperwork than fender benders. Independent and public adjusters, who are paid a portion of the claim, are similarly affected by the claim amount.
- Experience and education: The more experience and education an adjuster has, the greater their income potential. Entry-level adjusters may not handle complex or high-value claims. Adjusters with college degrees or related certificates may also have an advantage.
- Location and industry of employer: Adjusters’ salaries vary by state, area, and location based on the cost of living, demand, and employer competitiveness. Zippia reports that insurance adjusters earn $52,000 in Los Angeles and $45,000 in North and South Carolina. The employer’s industry might also affect an adjuster’s income. According to Indeed, insurance adjusters in banking and insurance make $64,000 per year, while those in construction earn $55,000 per year.
Salary Ranges for Different Types of Insurance Adjusters
As of June 2023, Indeed reports that the typical US insurance adjuster earns $57,315. Adjuster type affects this figure. Indeed data shows the wage ranges for several insurance adjusters:
- Staff adjuster: $59,200 – $72,400 per year
- Independent adjuster: $25 – $38 per hour
- Public adjuster: $50 – $100 per hour
These figures are only estimates and may not reflect the actual salaries offered by employers.
The Benefits and Perks of Being an Insurance Adjuster
Being an insurance adjuster can have several benefits and perks besides the salary. Some of these include:
- Job security: People will always need insurance and will always experience losses that require claims adjustment. The insurance industry is relatively stable and resilient to economic downturns.
- Competitive salaries: As mentioned above, insurance adjusters can earn a decent income depending on their type, experience, education, location, and industry.
- Flexible schedules: Insurance adjusters may have some flexibility in their work hours and locations depending on their employer and type. For example, independent and public adjusters may have more control over their schedules and assignments than staff adjusters.
- Online certification options: Many states require licensing for insurance adjusters, which usually entails mandated training and/or testing. However, some states allow online courses or exams for licensing purposes, which can make it easier and more convenient for aspiring or current adjusters to obtain or maintain their licenses.
- Room for growth within the field: Insurance adjusters can advance their careers by gaining more experience, education, certifications, or specializations. They can also move into management or analyst positions within the insurance industry or transition to sales or business development positions with related firms or companies.
How to Become an Insurance Adjuster?
Steps to become an insurance adjuster:
- Complete minimal schooling requirements: Most businesses demand a high school graduation, while others prefer a college degree in business, finance, or law.
- Choose your adjuster type: As said, insurance adjusters have diverse roles, duties, and pay structures. Choose one that matches your talents, interests, and ambitions.
- Acquire a license: Insurance adjusters in certain states require licenses. Pre-licensing courses, exams, applications, fees, and background checks are frequently required. StateRequirement shows state requirements.
- Stay licensed: Continuing education and license renewal may be required to maintain your license. Working in different states may need extra licenses.
Insurance adjusters like investigating, analyzing figures, and negotiating settlements.
It may also provide employment stability, attractive compensation, flexible hours, online certification, and career progression.
However, complicated claims, uncooperative parties, tight timelines, and unanticipated occurrences may make it difficult and frustrating.
Therefore, before choosing this vocation, balance the advantages and drawbacks and examine your suitability and preparation.