What does a car insurance adjuster do?

When you file a car insurance claim, an adjuster will be assigned to your case to assess the situation and determine whether the claim is valid.

The adjuster will examine the damage to your vehicle, gather evidence (including police reports), and interview witnesses. They also will estimate the vehicle's fair market value and repair cost. If it is declared a total loss – meaning the cost of fixing your car exceeds its book value – the adjustor will calculate its actual cash value (ACV) as compensation.

After an adjuster has determined the extent of the damage and the value of the loss, they will calculate a settlement offer based on the terms of your insurance policy, including your deductible and coverage limits.

Key highlights

• An auto insurance adjuster is the person who handles your claim, from investigating the incident to calculating a settlement.
• Insurance companies employ staff and contract adjusters; they serve as your point of contact during the claims process.
• If you are unhappy with your settlement offer, you can appeal the offer and hire a public adjuster to advise you during the appeal process.

What is an insurance adjuster?

Insurance adjusters assess claims to determine whether a policyholder is eligible for compensation and to what amount. They investigate accidents, injuries, and property damage to verify the cause, extent, and coverage. They may also coordinate with repair shops or medical providers on your behalf.

There are different kinds of insurance adjusters. Some work for the insurer, while others work for the policyholder.

• Staff adjusters are salaried employees who work exclusively for an insurance adjusting firm. They receive benefits such as pensions and health insurance. Their primary role is to handle insurance claims for the carrier that employs them.
• Independent adjusters are contract workers hired on a case-by-case basis. They are often employed by insurance companies seeking flexibility or third-party administrators needing adjusting services. Independent adjusters frequently handle catastrophe claims, such as those arising from natural disasters. This often requires travel to affected areas.
• Public insurance claims adjusters work for policyholders, advocating for their interests in the claims process. They assist individuals and businesses in filing and negotiating insurance claims. Policyholders often hire them when they believe they’re not receiving adequate compensation. As independent contractors, public adjusters strive to maximize settlements for their clients.
• Company adjusters specialize in assessing insurance claims related to company-owned vehicles. They investigate accidents, property damage and potential fraud involving corporate fleets.

How do adjusters determine liability and insurance payouts?

After reviewing the insurance policy to understand coverage limits, exclusions and specific conditions that apply to the claim, adjusters will investigate the accident to determine the cause, identify contributing factors and gather evidence such as police reports, witness statements and photos.

The adjuster determines who is at fault by analyzing the evidence. They’ll consider factors like traffic laws, driver behavior and the overall circumstances before calculating your insurance payout. Adjusters also may factor in gap insurance if the car is totaled and there’s a difference between the car’s value and the loan amount.

Because vehicles today are loaded with expensive technology like lane-assist steering and accident-avoidance radar, repairing even minor damage can be costly, said Carole Walker, executive director of Rocky Mountain Insurance Association. Repairing your vehicle may take longer than before.

“Because of the time and labor costs associated with repairs, autobody shops may take more time to repair newer vehicles because of the technology,” she said. “We’re seeing labor shortages, so it takes longer, which puts you in a rental longer. Those are all things an adjuster is looking at to determine the value of your vehicle.”

How to work with an insurance adjuster

During the claims process, don’t be surprised if your insurance adjuster interviews you at length about your application and asks probing questions.

“One of the most important things you can do is be practical and treat it as a negotiation,” said Janet Ruiz, director of strategic communication for the Insurance Information Institute (Triple-I), an industry research and outreach organization. “Sometimes people get intimidated by the claims process. They are defensive rather than just working with the claims adjuster and answering questions.”

Here are some tips for working with an insurance adjuster for a seamless claim process:

• Seek legal guidance before signing a medical release. Insurance companies often request medical releases from claimants, granting them access to medical records. They also may ask for records for an extended period before the accident, potentially searching for pre-existing conditions to deny or reduce claims.
• Be cautious about what you say. Statements you make to an insurance adjuster can be used as evidence in court. The adjuster represents the insurance company, not you. Your words may be misinterpreted or used against your interests.
• Maintain records of medical bills, out-of-pocket expenses and lost wages. Evidence is crucial in winning insurance claims. The more documentation you have to support your losses, the better your chances of preventing the insurance company from denying or underpaying your claim.
• Keep all your documentation in a central location. This will help you navigate the challenges the insurance company presents. Maintain a designated folder for paper documents and save copies of all email correspondence.
• Choose your body shop. Insurance companies may suggest specific repair shops, but you have the right to choose your own as long as it charges reasonable rates. Don’t feel pressured to use the insurance company’s preferred shop, even if it implies it is mandatory.
• Be sure to negotiate. An insurance claim is essentially a negotiation. You must understand your claim’s value to advocate for fair compensation persuasively. Effective negotiation involves strong arguments, solid evidence and persistence. A personal injury attorney can negotiate with the insurance company on your behalf to secure a favorable payment.

What is the car insurance claims process with an adjuster?

After a car accident, you should prioritize your safety. Remain calm, call emergency services, and move to a secure location. Document the scene by taking photos and videos and exchanging information with the parties involved.

Next, you’ll need to begin the claims process:

• Contact your insurance company, which will ask you for information about the accident, including the location, date, time, and weather conditions. You’ll also need to provide your contact information, police or accident reports, and photos of the damage.
• Review your policy’s coverages and deductibles so you can manage expectations regarding claims. It will outline your coverages, limits, deductibles, and additional protections you may have forgotten about, such as rental car coverage while your car is being repaired.
• Work with your insurance adjuster on the investigation into your claim. They’ll usually contact you a few days after you file to schedule an inspection, assess the damage, and handle any personal injury claims. They also might review police reports and interview witnesses.
• Repair or replace your car at the repair shop of your choice. Once your claim is approved, your insurer will pay you or the repair shop minus the deductible. Many carriers encourage claimants to go with a “preferred” collision repair shop, but you are not obligated to do so.

What if you disagree with the insurance adjuster’s assessment?

You may disagree with your insurance adjuster for various reasons, ranging from undervaluation of your vehicle or poor accounting of damages to lowballing your injury claim or denying certain coverage.

“If you don’t agree with either the amounts or the way the adjuster is handling it, your next step is to ask to work with a supervisor,” Ruiz said. “That often will help you get better information. If the company isn’t meeting your expectations and you still have a complaint, you should let your state’s department of insurance know.”

If you disagree with your insurance adjuster’s assessment, take proactive steps to protect your rights:

• Collect evidence to strengthen your claim. Get police reports to establish fault, and collect medical records detailing injuries, treatment costs and prognosis. Keep receipts for repairs, rentals and medical expenses related to the accident.
• Consider hiring a public adjuster. They can help guide you through the appeal process
• Negotiate your settlement. Based on your documentation, make a reasonable counteroffer. Avoid aggressive behavior, but don’t let an adjuster pressure you into accepting an unfair offer.
• Dispute the decision and file a complaint. If negotiations fail, formally dispute the insurer’s decision. Many policies offer arbitration, where an independent adjuster reviews the evidence and makes a binding settlement. You can also file a complaint with your state’s insurance department, which may prompt the insurer to reevaluate your claim.
• Seek legal advice. Lawsuits should be a last resort — they’re time-consuming and costly. Consult with an attorney to determine whether litigation is advisable.

“Understand that, especially with a car appraisal, there’s not as much wiggle room as there is with a home,” Walker said. “It’s a few thousand dollars versus tens of thousands. We typically don’t see major disputes on repair costs and replacements.”

Frequently asked questions

How long does it take for a claims adjuster to settle a car insurance claim?

Settling a car insurance claim can take anywhere from a few weeks to several months, but experts say 30 days is typical. Mitigating factors include the circumstances of the accident (was it a minor fender bender or a multi-car pileup?), the severity of injuries (if any), the extent of the physical damage, and whether or not legal action is being taken.

Do you have to meet with the claims adjuster in person?

You are not required to meet with the claims adjuster in person. But it could be to your advantage, allowing the adjuster to go over the damage and explain their findings and you to ask questions. If you feel the adjuster’s settlement offer is too low, be prepared to negotiate and provide documentation to support your case.

What is the difference between an insurance agent and an insurance adjuster?

An insurance agent is a professional who may represent one or more carriers. They are licensed to sell insurance policies, activate coverage (this is called binding), and provide customer support for policyholders. There are two kinds of insurance agents: captive agents and independent agents. Captive agents represent a single company, while independent agents represent several carriers. Captive agents may be hourly or salaried employees, while independent agents work on commission.

An insurance adjuster investigates and resolves claims. Insurance companies typically employ adjusters themselves or contract with independent adjusters to investigate claims, review damage, and determine compensation. Public adjusters work on behalf of policyholders to help them navigate the claims process and negotiate settlement amounts. They usually demand a percentage of the settlement payout as payment.