Most new independent adjusters don’t understand the auto damage claim process.

They feel confused wondering the order of things and what must happened for the claim to be completed. They’ve never had adjuster training that actually showed them how to do the job.

This makes you look ignorant to the IA Firms or the insurance company, so I want to take all that away and make you feel confident in your knowledge of the auto damage claim process.

I’ll be breaking down the big steps of the claim process and zoom in on the steps that we perform as an independent auto adjuster or auto damage appraiser.

Ready for this?

Let’s go.

(You can listen to an audio version of this article from the Independent Adjuster Podcast below)

---

Steps of an Auto Damage Claim

Every auto damage claim goes through the same process and we need to understand that process and our role as adjusters and appraisers within it.

From the time the damage occurs to the time the vehicle is completely repaired is the claim process.

10 Steps of an Auto Damage Claim

(When an Independent Adjuster or Appraiser is Utilized)

For simplicities sake I break down the steps of an auto damage claim into 10 steps.

1. Loss Occurs
2. Claim Filed (FNOL – First Notice of Loss)
3. IA Firm Assigned
4. IA Receives Email
5. IA Calls Owner
6. IA Inspects Vehicle
7. IA Writes Estimate
8. QC Approves
9. Owner Chooses Shop
10. IA Handles Supplement

Now there are several actions that occur within each one of those big steps of a claim.

Here is a visual that breaks it down.

Step 1: Loss Occurs

Someone backs into another vehicle in the Walmart parking lot, hail falls from the sky, or a deer runs out in front of a vehicle, this is what starts the claims process.

When a vehicle owner calls an insurance company to a report a claim is the start of the claims process. If a car is damaged and it isn’t reported, there is a never a claim.

Step 2: Claim Filed (FNOL)

When a vehicle owners calls the insurance company to file a claim, this is known as the “First Notice of Loss” or FNOL.

During the FNOL the insurance company is getting all the details related to the loss to begin the claims process.

Step 3: Independent Appraisal Firm Assigned

If an independent adjuster is involved, this is where the carrier will assign the claim to them or to an IA Firm.

The IA Firm’s job is to locate an adjuster to handle and complete the claim.

Step 4: Independent Adjuster/Appraiser Assigned

The IA Firms then selects an independent adjuster or auto damage appraiser to complete the file.

The adjuster is notified via email that they have a new assignment/claim to handle.

Step 5: Independent Appraiser Calls Owner

The adjuster calls the owner and schedules a time to complete an inspection.

Depending on their schedule and work volume will determine how quickly this occurs. Industry standard is within 48 business hours.

So that gives you an idea of the entire claim process and a bit about our role, but I want to zoom into your role as an independent auto adjuster or appraiser.

Step 6: Independent Appraiser Inspects Vehicle

Whether at the owners house, tow yard or shop the independent appraiser inspects the vehicle for damages.

Documenting everything they see with photos and notes that they’ll use to complete their estimate.

Step 7: Independent Appraiser Writes Estimate

With the information gathered the adjuster writes an industry standard estimate using a fancy calculator called estimating software.

Typically this is done inside the software CCC One. The appraiser compiles all the information and sends the estimate and reports back to the IA Firm that assigned them the claim.

Step 8: QC Approves

The independent appraisal or adjusting firm will then review the estimate and file to ensure that the independent appraiser completed the claim to the expectations and guidelines of their client, the insurance company.

When quality control believes everything looks correct they will approve the claim and submit it to the insurance company.

Step 9: Owner Selects a Shop

When the insurance company receives the completed report from the IA Firm and the loss is covered this is when they will write a check based on the estimate written by the adjuster/appraiser minus any deductible etc.

The vehicle owner may then select an auto body repair shop to get their vehicle repaired at.

Step 10: Independent Appraiser Inspects Vehicle for Supplement

When the shop begins to repair the vehicle they will submit any additional items or operations needed to properly fix the vehicle to the insurance company as a supplement.

They are seeking an additional payment or supplement to the original estimate that the independent appraiser wrote. It is at this point the independent adjuster or appraiser reinspects the vehicle in person of via photos and documentation to confirm those items and services are needed to repair the vehicle.

When the vehicle is repaired and there is no more additional/supplemental payments to review the claim is closed.

OK that is the big overview of the claims process now lets zoom in on our role in the claims process.

Role of an Independent Adjuster or Appraiser in Auto Damage Claims

Independent adjusters and appraisers have an important role in the claim process. Independents adjusters or appraisers (IA’s) are utilized when the insurance company needs assistance completing the claim.

The insurance company may not have someone an adjuster on staff that covers the area where the vehicle is or their staff adjuster may be so busy they need additional help with the overflow claims.

For whatever reason, the insurance company is hiring independent adjusters and appraisers to help with the claim.

The insurance carrier dispatches the claim through an IA Firm or directly to the independent to handle our portion of the claim.

With auto damage claims we are often called on to handle the physical inspection of the vehicle.

Here are the steps we must complete when a claim is assigned to us.

Steps to Schedule an Auto Damage Claim

The first job of an independent appraiser or adjuster is to schedule a time to inspect the damaged vehicle.

To accomplish this task though, there are several smaller steps that must be taken before you can inspect the vehicle.

1. Confirm Claim Is In Your Coverage Area
2. Schedule Time With the Owner
3. Status the IA Firm/Insurance Company About Appointment
4. Organize Your Day

At that point you are ready to inspect the owners vehicle.

Steps to Inspect a Damaged Vehicle

Once you have the appointment set, it is time to show up to your appointment and inspect the owners damaged vehicle.

The vehicle may be at a shop, tow yard, owners residence, or place of work. No matter where the vehicle is it is our job to inspect it for damages.

I’ve inspected vehicles at some really weird places, but regardless of where the vehicle is at the job stays basically the same.

The steps to complete an auto damage inspection are,

1. Have Conversation With Owner/Shop
2. Take Photos of the Vehicle & Damages
3. Take Notes/Scope the Damages of the Vehicle

Once you’ve gathered all this information you are now ready to write the auto damage estimate.

Steps to Write an Auto Damage Estimate

With your inspection complete it is now time to write your auto damage estimate and submit your findings to the insurance company or independent adjusting/appraisal firm.

1. Write your Estimate Based on Your Notes & Photos
2. Completed All Required Documents (Appraisal Report, Total Loss Form, Salvage Bids, NADA, etc.)
3. Upload to IA Firm/Insurance Company

At this point the claim is complete, if you wrote a perfect estimate, the vehicle was a total loss, or the owner never gets the vehicle repaired, but most of the time your claim will have a supplement.

Steps to Completing an Auto Damage Supplement

A supplement is where the body shop needs changes and additional or supplemental payment for items and processes that were not on the original auto damage estimate.

Just because you got a supplement doesn’t mean you wrote a bad estimate, it simply means you couldn’t identify every item or process that was needed at the time of inspection.

The estimators at the shops have the advantage of being able to have the vehicle tore down, broken items removed, and being able to pull the person that will be fixing the vehicle, the body man, to help them assess the damages.

Our job when handling a supplement is to verify that what they are saying is needed is indeed damaged or required to properly fix the vehicle. We are there to verify and be the eyes and ears of the insurance company.

The steps to completing an auto damage supplement are,

1. Review the Supplement and in Some Cases Re-Inspect the Vehicle
2. Write the Additional Items on Your Estimate (called a Supplement)
3. Gather and Complete Documents (photos of additional items, invoices from shop, tow bills, etc.)
4. Upload to IA Firm/Insurance Company

This is the standard process on all auto damage claims.

Summary of the Steps to Completing an Auto Damage Claims as an Independent Auto Damage Appraiser or Adjuster

1. Confirm Claim Is In Your Coverage Area
2. Schedule Time With the Owner
3. Status the IA Firm/Insurance Company About Appointment
4. Organize Your Day
5. Have Conversation With Owner/Shop
6. Take Photos of the Vehicle & Damages
7. Take Notes/Scope the Damages of the Vehicle
8. Write your Estimate Based on Your Notes & Photos
9. Completed All Required Documents (Appraisal Report, Total Loss Form, Salvage Bids, NADA, etc.)
10. Upload to IA Firm/Insurance Company
11. Review the Supplement and in Some Cases Re-Inspect the Vehicle
12. Write the Additional Items on Your Estimate (called a Supplement)
13. Gather and Complete Documents (photos of additional items, invoices from shop, tow bills, etc.)
14. Upload to IA Firm/Insurance Company

That is our job as independent auto damage appraisers and adjusters.

I hope it makes more sense to you now that you’ve seen it start to finish.

If you are interested in learning how to properly execute on all of those steps we can teach you how to do it and connect you to work opportunities.

The IA Path Auto Damage Certification not only teaches you, but it also gets the 2-5 year experience requirements waived with 40+ IA Firms.

You can check out that certification and 1 year mentorship by clicking HERE.