Adjustment
Definition
Adjustment refers to the process by which an insurance company investigates, evaluates, and settles a claim. This process includes gathering information about the accident, reviewing medical records and bills, assessing property damage, determining fault, and ultimately deciding how much to pay the claimant. The person responsible for carrying out this process is called an adjuster.
How It’s Used in Personal Injury Cases
From the moment you file a claim, the adjustment process begins. The insurance company assigns an adjuster who collects evidence, takes statements, and evaluates your damages. During adjustment, the insurer may request documentation such as medical records, proof of lost wages, repair estimates, and photographs of injuries or property damage. The adjuster’s findings shape the initial settlement offer—and how effectively you respond can determine your final recovery.
Insurance companies follow internal claims handling guidelines and, in Texas, must comply with the Texas Insurance Code’s fair claims practices, which set standards for timely and fair adjustment of claims.
Practical Example
After a rear-end collision, you file a claim with the at-fault driver’s insurance company. Over the following weeks, the adjuster reviews the police report, contacts you for a statement, obtains your medical records, and gets an estimate for your vehicle repairs. Based on this investigation, the adjuster determines that their insured was at fault and calculates your damages at $12,000. They call with a settlement offer, which you can accept, reject, or negotiate.
Why It Matters to Your Case
The adjustment process is where your claim’s value is determined—and where it can be undermined if you’re not careful. Providing incomplete documentation, agreeing to a recorded statement without preparation, or accepting the first offer can all hurt your recovery. Understanding how adjustment works empowers you to participate strategically. Working with an attorney ensures your claim is properly presented and that low offers are challenged with supporting evidence.
Key Takeaway
Adjustment is the insurance company’s process of investigating and settling your claim. How well you document your losses and respond to the adjuster’s inquiries directly impacts the compensation you receive.