How much do auto insurance agents make?
If you have low auto insurance rates, how much do auto insurance agents make? Insurance agents earn a commission from the policies they sell so what an insurance agent makes overall will vary from agency to agency. If you're planning to buy auto insurance, asking, "How much do insurance agents make?" is a good way to stay on your toes and avoid being oversold on any insurance products. Drivers who think their agent's trying to push unnecessary products can shop online for a new insurance company.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
UPDATED: Jan 10, 2025
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jan 10, 2025
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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Have you ever wondered, how much does an insurance agent make per hour?
Like most salespeople, insurance agents tend to make their money via commission. This means that whenever they sell you a policy, they earn a small profit on it. Now, if you’re on the hunt for affordable auto insurance, inquiring as to how much insurance agents make is significant, especially if you think someone is trying to sell you more auto insurance coverage than you need.
You might ask questions like, “how much do auto insurance agents make per policy?” or, “how much do insurance agents earn at State Farm?” The truth is more coverage costs more money. Commissions on certain products might be higher than others, but the more important question is what you as the consumer are getting out of it.
If you want to know how much insurance agents earn on auto insurance quotes, you’ll be happy to know that insurance quotes are free. You can get as many as you like without paying a dime.
If you’ve ever wondered, how much do insurance agents make on my policy? enter your ZIP code to obtain free insurance quotes.
- Insurance agents earn a commission when they sell a policy
- Insurance agents should help clients understand their insurance products
- Drivers who are dissatisfied with their insurance agent can shop online for a new insurance company
How do insurance agents earn a living?
Unlike your neighborhood banker or public relations manager, insurance agents don’t typically earn a salary. Their income comes from commissions that they earn by selling insurance policies. Insurance agents are the “face” of the insurance company they represent. They help their clients choose the best products that their insurance company has available.
Every time an insurance agent sells a policy, a certain amount of the profit is siphoned off to them from the insurance company. According to the U.S. Bureau of Labor Statistics, insurance agents earn slightly over $50,000 a year, but that may be very different from the amount that your insurance representative makes. Some agents also take pay upon renewal to service policies with their known clients.
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What is an insurance agent’s commission rate?
This information may leave you wondering, which insurance agents make the most money?
How much an agent actually makes depends on their selling ability, client retention, and commission rates. Now, if a driver has expensive auto insurance rates, how much do insurance agents make? Well, insurance agents can earn anywhere between 5-10% commission from their company when selling auto and home insurance. So if you have high rates, you could be earning your insurance agent a nice chunk of change.
Insurance agents who are licensed to also sell life and health insurance could earn as much as a 50% commission rate when selling such policies.
This is where you’ll need to be cautious when purchasing insurance. While you can’t hold it against your insurance agent for attempting to make a sale, you should never let yourself be pressured into a policy that you don’t think you need. A reputable insurance agent will always try to ensure that you understand what you’re buying and that you are receiving every discount for which you are eligible, like those listed below.
Auto Insurance Discounts from Top Companies
| Discount Name | Allstate | American Family | Farmers | Geico | Liberty Mutual | Nationwide | Progressive | State Farm | Travelers | USAA |
|---|---|---|---|---|---|---|---|---|---|---|
| Adaptive Cruise Control | NA | NA | NA | NA | NA | NA | NA | NA | N/A | N/A |
| Adaptive Headlights | NA | NA | NA | NA | NA | NA | NA | NA | N/A | N/A |
| Affinity/Membership | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | x | x |
| Anti-lock Brakes | NA | NA | NA | 3% | NA | NA | NA | NA | x | x |
| Anti-Theft | 3% | 3% | 3% | 3% | 3% | 3% | NA | 3% | 23 | 12 |
| Automatic Payment | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 15 | N/A |
| Claim Free | NA | 15% | 15% | 15% | 15% | 15% | NA | NA | x | x |
| Continuous Coverage | NA | NA | NA | NA | NA | 15% | NA | NA | 10 | 3 |
| Daytime Running Lights | NA | NA | NA | NA | NA | NA | NA | NA | 7 | x |
| Defensive Driver | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 8 | 3 |
| Distant Student | NA | 30% | NA | 30% | NA | 30% | 30% | NA | 30 | 5 |
| Driver's Ed | NA | NA | 10% | NA | 10% | 10% | NA | NA | 10 | 12 |
| Driving Device/App | NA | NA | NA | NA | 15% | 15% | NA | 15% | N/A | N/A |
| Early Signing | 10% | NA | 10% | NA | NA | 10% | NA | NA | N/A | N/A |
| Electronic Stability Control | NA | NA | NA | NA | NA | NA | NA | NA | N/A | 10 |
| Emergency Deployment | NA | 25% | 25% | NA | NA | 25% | NA | NA | N/A | N/A |
| Family Legacy | NA | NA | NA | NA | NA | NA | NA | NA | N/A | N/A |
| Family Plan | NA | 10% | 10% | NA | NA | NA | NA | NA | N/A | N/A |
| Farm Vehicle | NA | NA | 10% | NA | NA | NA | NA | NA | N/A | N/A |
| Federal Employee | NA | NA | NA | 15% | NA | NA | NA | NA | 7.5 | N/A |
| Forward Collision Warning | NA | NA | NA | NA | NA | NA | NA | NA | x | N/A |
| Full Payment | NA | 15% | 15% | 15% | 15% | 15% | NA | 15% | x | 90 |
| Further Education | NA | NA | NA | NA | NA | NA | NA | NA | N/A | N/A |
| Garaging/Storing | NA | NA | 20% | 20% | NA | NA | NA | NA | 8 | 3 |
| Gated Community | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10 | N/A |
| Good Credit | NA | NA | 15% | 15% | NA | NA | NA | NA | 5 | N/A |
| Good Payer | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | N/A | N/A |
| Good Student | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | N/A | N/A |
| Green Vehicle | NA | NA | 10% | NA | 10% | NA | NA | NA | x | x |
| Homeowner | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | N/A | x |
| Hybrid/Electric Vehicle | 20% | 20% | 20% | 20% | 20% | 20% | 20% | 20% | N/A | x |
| Lane Departure Warning | NA | NA | NA | NA | NA | NA | NA | NA | x | N/A |
| Life Insurance | NA | NA | 10% | NA | 10% | 10% | NA | NA | N/A | x |
| Low Mileage | 20% | 20% | 20% | 20% | 20% | 20% | 20% | NA | N/A | 15 |
| Low-Risk Occupation | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | N/A | N/A |
| Loyalty | NA | 15% | 15% | 15% | 15% | 15% | 15% | NA | 13 | x |
| Married | NA | 10% | 10% | 10% | NA | 10% | NA | NA | 8 | x |
| Membership/Group | NA | NA | 15% | NA | 15% | 15% | 15% | 15% | N/A | N/A |
| Military | NA | NA | 10% | 10% | 10% | 10% | 10% | NA | N/A | N/A |
| Military Garaging | NA | NA | NA | NA | NA | NA | NA | NA | N/A | N/A |
| Multiple Drivers | NA | 20% | 20% | 20% | 20% | 20% | 20% | NA | 10 | 12 |
| Multiple Policies | 22% | 16% | 18% | 15% | 22% | 18% | 29% | 25% | N/A | N/A |
| Multiple Vehicles | 20% | 20% | 20% | 20% | 20% | 20% | 20% | NA | N/A | N/A |
| New Address | NA | NA | NA | NA | NA | 10% | NA | NA | N/A | x |
| New Customer/New Plan | NA | NA | 10% | NA | 10% | 10% | NA | NA | x | N/A |
| New Graduate | NA | NA | 10% | 10% | 10% | NA | NA | NA | 15 | N/A |
| New Vehicle Discount | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | N/A | N/A |
| Newer Vehicle | 15% | 15% | 15% | 15% | 15% | 15% | NA | 15% | N/A | N/A |
| Newly Licensed | NA | NA | 20% | NA | NA | 20% | NA | NA | 3 | 3 |
| Newlyweds | NA | NA | NA | NA | 10% | 10% | NA | NA | x | x |
| Non-Smoker Discount | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | N/A | N/A |
| Occasional Operator | NA | NA | NA | NA | NA | NA | NA | NA | 23 | 12 |
| Occupation | NA | NA | NA | NA | 10% | NA | NA | NA | N/A | N/A |
| On-Time Payments | NA | NA | 10% | NA | 10% | 10% | NA | NA | N/A | x |
| Online Shopper | NA | NA | NA | NA | 5% | NA | NA | NA | N/A | N/A |
| Paid-in-Full Discount | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | N/A | N/A |
| Paperless Documents | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | N/A | N/A |
| Paperless/Auto Billing | NA | NA | NA | 10% | NA | NA | NA | NA | N/A | N/A |
| Passive Restraint | 10% | NA | NA | 10% | 10% | NA | NA | NA | x | x |
| Pay-Per-Mile Insurance | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | x | x |
| Recent Retirees | NA | NA | 10% | NA | NA | 10% | NA | NA | N/A | N/A |
| Safe Driver | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | N/A | $75 |
| Safety Course Discount | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | ||
| Seat Belt Use | NA | NA | NA | 15% | NA | NA | NA | 15% | ||
| Senior Driver | NA | NA | 10% | 10% | 10% | 10% | NA | NA | ||
| Stable Residence | NA | NA | 10% | NA | NA | NA | NA | NA | ||
| Students & Alumni | NA | 10% | 10% | NA | NA | NA | NA | NA | ||
| Switching Provider | NA | 10% | 10% | NA | 10% | 10% | NA | NA | ||
| Usage-Based Insurance (UBI) | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | ||
| Utility Vehicle | NA | NA | NA | NA | NA | NA | NA | NA | ||
| Vehicle Recovery | NA | 10% | 10% | 10% | 10% | 10% | NA | NA | ||
| VIN Etching | NA | 10% | NA | NA | NA | NA | NA | NA | ||
| Volunteer | NA | NA | 10% | NA | 10% | NA | NA | NA | ||
| Young Driver | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% |
But insurance agents don’t merely receive a commission from selling new policies. They also make money whenever a client renews their policy.
How much does an insurance agent make on policy renewals?
When you renew your auto or home insurance with a company, the agent who sold you that policy earns a commission between 2-5%. Now, if you happen to buy a life insurance policy and keep it in good standing, the insurance agent who sold it to you could earn 1-2% per renewal.
How can someone become an insurance agent?
An individual can’t simply walk into an office, hang a pretty sign on the door, and call themselves an insurance agent. They need to train and get licensed.
If you were to become an insurance agent, you would need to take a pre-licensing course which generally runs for a week and discusses the insurance laws of the state as well as general information on products like home and auto insurance.
Once that is completed, you will need to schedule an exam to get your license. There are multiple exams depending on what kind of insurance you plan to sell. For example, life insurance requires one license while homeowners policies would require both property and casualty licenses. When you pass the exam and complete the application process for license, you will be provided a copy of your license. After that, you will begin searching for an agency to hire you as an insurance producer. If you want to open your own agency, you will need in-house training provided by your insurance company and a desire to work your way up the ladder. You would also need state licensing for your brokerage.
In addition to that, you will need to maintain your insurance license by taking continuing education courses and renewal exams as needed.
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How much do insurance agents make: What You Need to Know
When you join a new auto insurance company, how much money do insurance agents make? Well, insurance agents make their money by selling insurance policies and earning commissions. If you want to purchase auto insurance, asking “How much do insurance agents make?” is a smart buyer tactic as it can prevent you from being forced into buying something that you don’t need.
Your insurance agent should listen to you, educate you on your insurance products, and help you secure every discount for which you are eligible. If you don’t feel like you have such a relationship with your insurance agent, you can also shop online for a new insurance company.
If you want to know how much insurance agents make on your policy, enter your ZIP code to compare free quotes from insurance companies near you.
Frequently Asked Questions
Can auto insurance agents earn a high income?
Absolutely! Auto insurance agents have the opportunity to earn a high income based on their skills and performance. Successful agents who excel in their sales efforts and build strong relationships with clients can earn substantial commissions and bonuses. By consistently meeting or exceeding their sales targets, agents can significantly increase their income potential.
Are there opportunities for auto insurance agents to increase their income?
Yes, auto insurance agents have various opportunities to increase their income. One way is by consistently growing their client base and generating new business. As agents build a larger pool of satisfied customers, they can earn more commissions and bonuses from the policies they sell.
Do auto insurance agents receive additional benefits along with their income?
Yes, in addition to their income, auto insurance agents often receive additional benefits. These benefits can vary depending on the agency they work for, but commonly include health insurance coverage, retirement plans, paid time off, and opportunities for professional growth.
Can auto insurance agents earn commissions from policies they sell?
Absolutely! Auto insurance agents typically earn commissions from the policies they sell. Commissions are a percentage of the premium amount paid by the client, and they can vary depending on the type of insurance and the agency’s structure.
Is experience a factor in determining an auto insurance agent’s income?
Yes, experience plays a significant role in determining an auto insurance agent’s income. As agents gain more experience in the field, they typically develop stronger sales skills, product knowledge, and client relationships. This expertise allows them to sell policies more effectively and efficiently, leading to higher sales volumes and potentially higher commissions.
Are there opportunities for advancement in the auto insurance industry?
Yes, the auto insurance industry offers opportunities for advancement. Auto insurance agents who consistently demonstrate exceptional sales skills, leadership qualities, and industry knowledge can progress in their careers. Advancement can include moving into managerial positions, where agents oversee a team of other agents and guide their performance.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.