How to Become an Insurance Adjuster in Each State
Imagine a career where every day comes with new situations for you to investigate, evaluate, and negotiate to make a profound difference in people’s lives.
This is the world of anyone with an insurance adjuster career.
The path to becoming an insurance adjuster isn’t a one-size-fits-all journey. There are different qualifications and requirements that can vary greatly depending on what state you’re in.
In this blog, we’ll make things a little easier and guide you through the process of getting your insurance adjuster license in each state.
Licensing States
If you live in a state that requires a license, you’ll generally need to complete a few steps to acquire it. Some states have their own insurance adjuster licensing process. This affects where and how you get licensed. In fact, most states (34 out of 50) issue their own licenses for claims adjusters.
Additionally, some states are more difficult to work in than others. For example, New York and California are notorious due to two rules:
- Neither state offers reciprocity (along with Hawaii), so if you want to process claims in those states, you need to complete all their requirements.
- Both states (along with New Mexico and Kentucky) require adjusters to get bonded, which is meant to ensure that adjusters follow their licensing obligations and protect consumers.
These two obstacles combined mean that few nonresidents hold California or New York adjuster's licenses, but if you make the effort, they can be valuable.
Non-Licensing States
If you reside in a state that does not mandate an adjuster license, you’re not required to obtain one to perform work there. Below is a list of states that do not require licensing:
- Colorado
- District of Columbia
- Illinois
- Iowa
- Kansas
- Maryland
- Massachusetts
- Missouri
- Nebraska
- New Jersey
- North Dakota
- Ohio
- Pennsylvania
- South Dakota
- Tennessee
- Virginia
- Wisconsin
While living in one of these states means you don’t have to get a license, it’s better if you do. The knowledge you gain by getting licensed can come in handy during your career as an insurance adjuster.
What Skills Do Insurance Adjusters Need?
Insurance adjusters should possess the following skills:
- Analytical Skills: Ability to assess complex information and make sound decisions.
- Communication Skills: They must explain complex insurance terms in understandable ways to claimants and interact effectively with other professionals.
- Detail-Oriented: Paying attention to the specifics of each claim is crucial.
- Interpersonal Skills: Handling potentially upset or stressed claimants with empathy and understanding.
- Math Skills: Ability to compute settlements and understand detailed financial records.
- Time Management: Juggling various claims and tasks is typical in this job.
How To Become an Insurance Adjuster
To become an independent insurance adjuster, follow these steps:
1. Meet the Basic requirements
In the U.S., the prerequisites include being a minimum of 18 years old, possessing a valid driver's license, owning a personal vehicle, having proficient reading and writing skills in English, and having the capability to navigate and perform tasks in diverse settings.
2. Meet the Education Requirements
While a high school diploma or equivalent is a minimum educational requirement, some employers may prefer candidates with a degree in business or a related field.
Most claims adjusters possess a college degree. Thus, if you've attained an associate's, bachelor's, or master's degree, you're well-placed to seek employment as an independent adjuster. Those with degrees specifically in insurance are especially appealing to prospective employers.
Lacking a degree might make you think about obtaining one, as it can differentiate you from applicants without higher education. However, it's worth noting that even with just a high school diploma or GED, you can still become an independent adjuster. Prior work experience that has equipped you with valuable skills and insights can be particularly advantageous in this context.
3. Complete Pre-Licensing Courses
Some states require you to take a pre-licensing course before sitting for the exam. Therefore, you should complete the pre-licensing prep course provided by your home state. These courses can offer insight into the role of an adjuster and the insurance industry.
Keep in mind that you will need to pass the state’s required licensing exam and pass a background check if required.
4. Obtain State Licensing
Should your state mandate licensing, it's essential to secure one to lawfully manage and finalize insurance claims.
Additionally, you might find yourself needing reciprocal licenses for other states where working as an independent adjuster is an option for you.
It's worth noting that certain Independent Adjuster (IA) firms might insist on a license, irrespective of your state's location, as it acts as a testament to your proficient understanding of the profession.
5. Gain Experience
Start with an insurance company or an independent adjusting firm to gain experience. This can be in the form of a trainee position or internship.
Consider pursuing an entry-level role as a "claims specialist" or adjuster at an insurance firm, be it as an in-office desk adjuster or a field adjuster operating externally. In both capacities, immerse yourself in the claims procedure and try to connect with peers in the industry.
This approach helps you familiarize yourself with the sector, sharpen your expertise, and establish meaningful relationships.
Ideally, you'll be chosen to participate in a structured training initiative tailored for new adjusters.
Additionally, there might be chances to attain specific adjuster accreditations, which can be a noteworthy addition to your résumé. Such certifications reflect advanced proficiency in specific areas.
If you've previously worked as a staff adjuster or in a similar related capacity, that will help you. The more hands-on experience you gather within an insurance company, the better equipped you'll be to venture into independent roles.
6. Apply for an Insurance Adjuster License
After gaining experience and meeting your state’s requirements, you can apply to become an independent adjuster. This usually requires a separate license.
Submit your licensing application accompanied by the necessary fee payment. Issuing your license might take several weeks, particularly in states with many applicants.
Remember, the application processes and criteria differ from one state to another.
How Long Does It Take to Become an Insurance Adjuster?
The entire process can range from a few months to several years, depending on your educational choices and the time you spend gaining experience.
For those without any prior work experience or a high school diploma, fulfilling all prerequisites can take between 5–6 years. According to ZAPPIA, on top of the 4 years it takes to get your Bachelor’s degree, typical claims adjuster jobs require 1–2 years of experience in related fields, and it can take an average of 1–3 months of job training to become a claims adjuster.
However, for those with a high school diploma and some related work background, securing an adjuster's license might be the only step needed, potentially taking just a few weeks to qualify as a claims adjuster.
How Much Does It Cost to Become an Insurance Adjuster?
The answer to this question depends on the state you reside in and whether you are trying to become an insurance adjuster. Apart from education, here is what you can expect to pay for the process:
- Pre-licensing Courses: $100 to $500
- Licensing Exam Fees: $30 to $150
- License Application Fees: $15 to $300
- Continuing Education: $50 to $200 every couple of years
Remember, this all depends on your state’s insurance adjuster requirements. Make sure to check for the exact details with your state’s Department of Insurance.
How Much Do Insurance Adjusters Make?
Insurance adjusters' salaries vary based on experience, location, and specialization.
According to the U.S. Bureau of Labor Statistics, the average annual wage for claims adjusters, examiners, and investigators is approximately $75,770. Entry-level adjusters may earn closer to $47,390 annually, while seasoned professionals, particularly those handling complex claims, can see earnings above $105,440.
Where Do Insurance Adjusters Get Paid the Most?
Insurance adjusters tend to earn the highest salaries in states with higher living costs and demand for specialized adjusting services. According to ZipRecruiter, top-paying states include:
- San Francisco, CA
- San Jose, CA
- Oakland, CA
Oakland, CA, beats the national average by $13,942 (16.9%), and San Francisco, CA, furthers that trend with another $19,424 (23.5%) above the average.
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