The Difference Between Insurance Adjusters and Agents


People looking at insurance information

People often view their insurance company through their relationship with their insurance agent, so you think this relationship sometimes is misunderstood as it relates to car accident victims and dealing with the insurance companies after an accident?

A lot of times people have a great relationship with their insurance agent that can lead injury victims to feel a sense of obligation or fear that they will negatively affect this agent when it comes to receiving compensation for their claim.

 The Reality of Insurance Adjuster in Auto Accident Claims

This is not the reality. First, there is an important difference between an agent and adjuster you must understand. An agent lives here in our community. An agent is usually a really nice person, and their job is to sell you insurance and might very well care about you on a personal level. There is no insurance company in the United States that allows their agents to be adjusters. If you are injured in an auto accident, the agent is not making any decisions, nor allowed to have any say in the process. So your agent is not making any decisions on what is paid, what is not paid, whether you’re determined to be at-fault, this all goes to the insurance adjuster.

 How Insurance Adjusters are Compensated Effects You

An insurance adjuster typically does not live in the same town as you; not even the same state as you. The adjuster’s only job is to minimize what the insurance company has to pay. Adjusters are rewarded for paying less than a claim is worth. At the start of each claim the insurance company sets reserves; which means the maximum they think they will have to pay as a result of this accident. So let’s say the reserves are $100,000 and the adjuster settles the claim for $50,000, the insurance company just saved $50,000, and the adjuster is graded and rewarded for their ability to settle cases for less than the reserve. This is also how they are paid in bonuses and even graded for promotions. So there is a clear financial incentive for the insurance adjuster to pay less for a claim.

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