AUTO INSURANCE ARTICLE
Auto Insurance 101: Adjusters, Appraisers and Investigators
By: coppeneurAuto insurance policies are meant to cover drivers against monetary losses, damage to vehicles and bodily injury. In the event of a loss and/or damage, auto insurance policyholders seek payment for their losses from their carriers. And if you have gone through this before, you know that you are required to submit a claims request.
The claims process is an insurance procedure involving adjusters, appraisers, examiners, and investigators. They investigate the claims, negotiate settlements, and authorize payments to claimants, guided by the Federal and State privacy laws that guarantee claimant’s rights. They must determine whether the customer’s insurance policy covers the loss and how much of the loss should be paid to the claimant.
Adjusters are the first hands involved in going about a claims request. Their job involves double checking whether claims are legitimate. Their investigation starts with an interview with the claimant and witnesses, accessing police and hospital records, evaluating property damage to determine the insurance company’s liability and consulting with other professionals as needed. When the adjuster finds that the insurance holder’s claim is valid and legitimate, the adjuster negotiates with the claimant and arriving at an agreement, settles the claim. However, if the claims are contested, adjusters will defend their company’s position.
Auto damage appraisers come in the picture for an accurate settlement of claims. Appraisers are generally depended upon to provide an unbiased judgment of repair costs compared to auto mechanics’ estimates, which are usually at higher, often unreasonable amounts. An appraisal of the repair costs goes into the settlement information that the adjuster brings forward to the claimants.
When there is a suspicion of a possible fraud, adjusters refer the claim to an investigator. Generally, insurance companies maintain a special investigative unit which handles claims suspected of fraudulent or criminal activity, such as arson, falsified workers’ disability claims, staged accidents, or unnecessary medical treatments.
Since the adjusters and appraisers are working for the interest of the insurance company, their settlement offers may not agree with what claimants expect. Claimants can opt to rely on the services of a public adjuster.
A privately-hired public adjuster assist clients in preparing and presenting claims to insurance companies and in trying to negotiate a fair settlement. Performing the same services as adjusters of insurance companies, they nevertheless work in the best interests of the client. Hiring one would really be helpful if you have strong reasons to believe that the settlement offer given to you, or the insurance carrier’s appraisal of the damage is not justifiable at all.