The instructions given to an insurance claims adjuster by an insurance company will differ depending on the company and the type of accident. While sometimes it may be evident that the adjuster seeks to deny or reduce the value of your claim by any possible means, other times the adjuster’s motivations will not be so clear. Below is an explanation of the common instructions provided to insurance adjusters.
The Employer, Employee Relationship
An insurance adjuster is an insurance company’s employee. This means that the adjuster’s loyalty is to the company and to his continued employment. An adjuster, therefore, will seek to obtain his employer’s objectives, regardless of what the injured party seeks. It is important to remember that this relationship exists when an adjuster begins his investigation.
Short Answer: No
The short answer to whether insurance claims adjusters are instructed to offer minimum compensation is no, they are not. However, this only applies to the implication in the question that an insurance company will assign and made known a specific amount of compensation it is willing to pay for claims. This practice is not common, as it would open the company to litigation.
Long Answer: Yes
The longer answer about whether an adjuster has been told to offer a minimum amount of compensation is that, yes, he has received this instruction. This means, though, that the adjuster has been informed that his job is to identify the least amount of money a company can offer a claimant without opening themselves to litigation for a bad faith denial of benefits lawsuit. Therefore, while an adjuster is not provided with a total value to ascribe to all claims, he is provided with the instruction to value claims as low as possible.
This instruction can often take the shape of the insurance company providing the adjuster with a list of “common values” to ascribe to portions of a claim. For example, fixing a bumper, according to the company, should normally cost $300.00. Even though your bumper requires $500.00 to repair, the insurance adjuster will only award you $300.00. Through this, the adjuster has been provided with the basis to value your claim as low as possible.
What to Do
To circumnavigate the adjuster’s instructions you must research and value your claim by yourself. This will assist you in refuting the values the adjuster ascribed to your claim.
Getting Legal Help
If you have been involved in a car accident and an adjuster has been assigned to your claim, seek legal assistance. A lawyer will review the facts of your accident and help you in obtaining the most compensation available for your claim.
