How Do Insurance Adjusters Make Money?

An insurance adjuster has excellent earning potential. But with great income comes a lot of responsibility. You will have to make sacrifices, but you may be able to earn that money in a short period of time. There are two main types of insurance adjusters: staff and independent. Depending on the path you decide to take, your earning potential can vary greatly.

Staff Adjuster vs. Independent Adjuster

Staff adjusters work for an insurance carrier, and they make money on a salary. They work regular schedules all year round. They also benefit from employee benefits such as insurance, paid time off, and they don’t need to supply their own equipment. Typically, staff adjusters will make much less than independent adjusters. Their salary ranges from $38,000 to $70,000 a year. The best part is that you stay close to your home and family, and have an easier time planning around your regular schedule.

Independent adjusters are independent contractors that work for adjusting firms. They don’t have a set working schedule. Also, they can choose to work more one year, or less on another. They can also choose to work wherever they want. Getting your insurance license in Texas gives you a huge advantage in the job market. Your license is valid across 30+ states, which means you can work on claims all over the country. Due to the flexibility of this position, determining a set salary for independent adjusters is tricky. However, you can make $100,000 or more on a good year! You make money based on a fee schedule, which we’ll get into below.

Fee Schedule Explained

Independent adjusters are paid on a fee schedule. The percentage is based on the total claim amount. The more claims they work on, the more “fees” they make. But they don’t make the entire fee amount. Part of it is paid to the adjusting firm that they work closely with. Here’s an example:

Let’s say you work on a fee schedule that pays $750 for claims that are between $7,500 and $10,000. You receive 60-70% of the fee, while the adjusting firm makes 30%-40%. You can pocket $525 just from that one claim. But a claim shouldn’t take you more than a couple hours. Therefore, you can work on 2 to 4 claims a day and even more when you have more experience.

High Demand Could Mean Heavier Pockets

During catastrophes, there is a higher demand for insurance adjusters. Insurance companies and adjusting firms send their adjusters to the areas that are hit by the catastrophe. Staff adjusters don’t usually have to travel very far. They take care of catastrophes that are in their area. On the other hand, independent adjusters will travel hundreds of miles to perform their job. Since they are more flexible with distance, they are able to work on more catastrophes and claims.

Some years suffer through more disasters than others. When it’s been a catastrophic year, insurance adjusters are in high demand. They have a lot more work to do, especially the independent adjusters. These can be deployed for months sometimes, working through everyone’s claims. Additionally, the fee schedules can increase, in order to incentivize independent adjusters to take on those longer, more disastrous situations. You can make 6 figures in just a few months!

2021 Training Can Get You Started 

Insurance adjusters can live very comfortable lives. And we can help you get started today. 2021 Training offers comprehensive online courses to prepare you for the Texas insurance license exam. Our resources will ensure that you ace that exam! You can take them at your own pace, and we are always available to answer any questions you may have. Get in touch with us today, and let’s begin the first step into your bright future.