Learning how to become an auto insurance agent can lead to a lucrative and interesting career. so how do you become an agent? You may also be wondering if you qualify to become an insurance agent and if you can earn enough doing so.
While most of the best auto insurance companies require a degree in business or finance or certification from a college-based insurance course, other companies prefer to do their own training and don’t require a degree.
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In addition, acquiring an auto insurance broker’s license usually involves a training course and an exam. But if you want the relative freedom that the insurance industry offers its agents, and if you have the drive to help people save money on their insurance and get the right protection for their families, then there are plenty of reasons to become an agent. insurance.
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what are the requirements to become an auto insurance agent?
Licensing and education requirements vary from state to state, so you’ll want to do some more research and maybe talk to someone who’s already in the industry. but some general information about these requirements will probably help you focus your research so that he can reach his goal more quickly.
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You will need some basic education to become an auto insurance agent. Some of the largest national companies require a business or finance degree to qualify. others may accept a college course certification in the insurance field. this option can be completed in two years or less, instead of the four years required to earn a degree.
In contrast, there are a large number of companies that do not require a degree or certification, and some even prefer agents without them. This is because they prefer to train the agents themselves so that the potential agent learns to do business the same way the company does rather than the way learned in a college or university.
Companies that provide on-the-job training provide the distinct advantage of being able to start earning right away while learning about the different types of auto insurance. The time you spend training and qualifying for your license is also time you spend earning money and gaining experience as an agent. The key is to gain a basic understanding of the factors that affect auto insurance rates and how the insurance system supports drivers.
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As with education, licensing requirements also vary from state to state. but no matter what state you are in, a license is required. This usually involves taking a training course, passing an exam, and getting a background check. The exam fee ranges from $40-$150, and the background check ranges from $30-$200. The process can take 3-6 weeks, depending on the complexity of the training and background check requirements for each state. respective.
How much do auto insurance agents make?
The median annual salary for insurance sales agents as of May 2021 was $49,840. However, actual earnings really depend on the individual agent, as auto insurance agents are typically paid to commission. while some companies offer a base salary, it is usually a minimum and the agent will need to sell policies to earn enough money. The average commission for auto insurance brokers is 15-20%, and some companies also offer annual bonus incentives.
Another factor in salary is what type of agent you choose to be.
- captive agents. captive agents sell for a single company. that company may pay a base salary plus commission, and the agent may qualify for annual bonuses from the company. they represent a specific brand and their advertising would promote that brand.
- independent agents. Independent agents sell insurance for a variety of companies. they basically do comparison shopping for their customers to find the best rates and coverage. They create their own brand and typically earn higher commissions, but no base salary or employee benefits.
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Both types of agent positions have advantages and disadvantages.
become an auto insurance agent
With the educational requirements of your state and the company you are interested in being an agent for, you can begin the qualification process. If the company prefers on-the-job training, you can “earn while you learn.” expect to pay between $70 and $350 for the exam, background check, and license, depending on the state in which you operate. commission-based earnings allow you relative freedom over your finances, and the choice between being a captive or independent agent puts you in control of how you earn.
If you’re ready to be an insurance agent and want more information about rates, enter your ZIP code below to access auto insurance quotes from America’s top providers.
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