What is an insurance adjuster, and what is their role?
An insurance adjuster investigates claims and assesses damages and losses. After a car accident, drivers report the damage to their insurance provider to start the insurance claims process. In response, the provider will send an adjuster to assess the full extent of the vehicle’s damage and, if applicable, any injuries or other losses.
These assessments are conducted independently of what the driver has assessed and claimed, even if they provided detailed photos and documentation of the accident and its costs. After investigating the accident damage, the adjuster determines whether the policyholder’s claim is reasonable and how much the company should pay out.
Why is there a difference between the body shop’s estimate and the insurance adjuster’s estimate?
Although both investigate and address the damage to the same vehicle, an auto body shop’s preliminary estimate may differ from an insurance adjuster’s. These differences can vary by hundreds or even thousands of dollars, depending on the extent of the damage and the number of parts to replace. This is because they approach repairs and their costs with different priorities.
- Body shop estimates are almost always higher because they focus on providing the highest-quality repairs possible. They may recommend OEM or genuine parts and services or enhancements that go beyond the most basic repairs so the car regains its performance and reliability in the long term. Additionally, body shops may discover and address hidden damage during the final inspection, potentially increasing the final numbers.
- Insurance adjuster estimates tend to be lower because they approach it from the provider’s perspective. Their role is to assess the minimum required amount of repairs to honor the insurance policy, minimizing the amount the insurance company has to pay. They may base their cost estimates on the price of third-party or aftermarket equivalent parts. Insurance adjusters also assess the damage based on what they can initially see. They may not necessarily change that estimate even if hidden damage is discovered later.
What should I do if I disagree with the adjuster’s estimate?
If you feel that the adjuster’s estimate is too low or inaccurate, review it to identify the specific repairs or cost estimates you disagree with. Reach out to a reputable local auto body shop for a quote and their professional opinion on the necessary repairs. Then, share this additional information with your insurance provider and request a claim reassessment.
Do I have to use a body shop recommended by my insurance company?
No, you are not required to use a specific body shop. However, the outcome of your choice may vary based on your insurance policy details. You always have the option to select any body shop, but choosing one within your provider’s network often brings added benefits. These preferred shops have established relationships with the insurance company, which can result in quicker repairs and potentially lower costs.
Can an insurance adjuster reject certain repairs recommended by the body shop?
Yes. One of the most common reasons adjusters reject specific repairs is because they consider them to go beyond what’s necessary to restore the vehicle to its pre-accident condition.
How do insurance adjusters decide whether a vehicle is a total loss?
Most insurance adjusters determine the vehicle’s Actual Cash Value (ACV). In California, the ACV is considered equal to the fair market value (FMV) unless your insurance policy uses a different definition. Most insurance companies consider a vehicle a total loss if the cost to repair it is equal to 70% of its ACV or more.
What should I do if the adjuster is uncooperative?
If your insurance adjuster is unwilling to compromise or approve repairs you believe are necessary, gather detailed records of your interactions with them. Then, contact your provider and request to speak with a supervisor or a higher-ranking representative and go through the company’s dispute resolution process.
You’ll need to be ready to provide detailed documentation to support your claims, such as quotes from auto body shops or opinions from automotive experts.
Can I hire my own independent adjuster?
Yes. If you disagree with your insurance company’s findings, you can hire a public insurance adjuster instead. They can conduct their own investigation and assessment of the accident damage, acting as a third party and negotiating with your insurance provider on your behalf. They are a potential alternative to following the dispute resolution process.
Do insurance adjusters always conduct physical inspections of the damage?
Not necessarily. If the accident is relatively minor, such as a dent or a fender-bender, adjusters may rely on photos, videos, and descriptions of the accident without conducting an in-person visit.
How can I protect myself from an unfair assessment?
You can take multiple steps to protect yourself from an unfair or overly low assessment. The first is to review your insurance policy thoroughly; it will help you understand what it covers and better understand how your adjuster will evaluate the damage.
Before filing a claim, keep copies of all documentation and save records of all your communications with the adjuster. Get at least one quote from a trusted, highly qualified auto body shop to compare with the adjuster’s estimate.
