What Should I Know About Insurance Adjusters?©
Written by: Mark Wolfe, Attorney at Law. The following information is provided as general advice and without charge. Questions about specific issues or situations should be directed to an experienced motor vehicle accident attorney. NOTE: The following material is protected by all applicable State and Federal Copyright laws. Published March, 2005.
- Insurance is a business. Despite all the catchy slogans and “feel good” advertising done by insurance companies, the most important thing for claimants to remember is that insurance is a business. Revenue – Expenses = Profits. Insurance companies collect premiums (revenue) and try to pay out as little as they can on claims (expenses). The less an insurance company pays on a claim, the more profit it makes.
- Insurance adjusters are trained professionals who work for the insurance company. If you are making a claim against the at-fault driver’s insurance (a liability claim) then the adjuster’s job is to try and protect the at-fault driver and, more importantly, the insurance company’s profit margin.
- Insurance adjusters can not give legal advice to claimants. When making a claim against the at-fault driver’s insurance company, the adjuster has no obligation to tell you your rights. In fact, most adjusters do not have a law degree and it is illegal for them to offer legal advice to claimants.
- Insurance adjusters do not have to advise you of other insurance coverage. There is no legal requirement for an adjuster to voluntarily tell a claimant what other insurance benefits or coverage may be available. Nor can an adjuster tell you how you can use those other benefits or coverage to your maximum benefit.
- Insurance adjusters are trained to discourage claimants from seeking legal advice. A claimant who does not have an attorney is commonly referred to as an “unrepped” claimant. This is short for unrepresented by an attorney. Insurance studies have shown that unrepresented claimants recover less restitution for similar claims than those claimants who have legal representation. Simply put, the adjuster has the advantage when dealing with an unrepresented claimant. NOTE: The adjuster may also have an advantage if the attorney representing the claimant does not have experience in the area of auto-negligence claims and litigation experience. Some insurance companies have put into place elaborate programs and procedures to help adjusters discourage claimants from seeking legal advice. Others have armed their adjusters with phrases and concepts to dissuade claimants from seeking legal advice. “You don’t seem like the kind of person who’s going to run out and get an attorney.” This implies that only greedy people get attorneys. “All an attorney is going to do is take your money….I’d rather see you get the money as opposed to paying 50% of it to an attorney.” Reputable and experienced auto-negligence attorneys can usually help claimants recover more restitution and most only charge a one-third contingency fee. “I’m going to pay the same on this claim whether you get an attorney or not.” While this is rarely, if ever true, even so an experienced auto-negligence attorney can often help identify other available coverage or benefits and use these additional benefits in a way that is best for the claimant.
Additional Information: What should I Know About Claim Procedures?
