How can one embark on the path to becoming a reliable agent in the world of auto insurance? Before we begin, it is important to know that you need the necessary licensing and education to have the essential interpersonal skills and more.
Who is an Auto Insurance Agent?
An auto insurance agent is a professional who sells auto insurance quotes to individuals or businesses as a representative of insurance companies. They assist customers in understanding their insurance-based needs and suggest the best coverage options.
They also help clients pick and manage their policies. In addition, auto insurance agents can work for different insurance companies as independent agents and for certain insurance companies as captive agents.
Types of Auto Insurance Agents
Here are the two main types of car insurance agents:
- Captive Agents
- Independent Agents
Captive Agents
These types of insurance agents work only for a single insurance company and are the only products of that company. In other words, they are more like employees of the insurance provider and are trained and supported to sell these by their employer.
Independent Agents
Independent agents, on the other hand, have no connection with any insurance company and can sell the policies of different insurance providers. They are also known as insurance brokers.
Responsibilities
Here are the responsibilities of an auto insurance agent:
- Selling auto insurance policies or quotes.
- Processing insurance applications and renewal requests.
- Reviewing client needs and recommending suitable coverage.
- Staying updated with the latest industry changes and trends in insurance standards.
- Managing claims and helping clients with the claim process.
- Handling policy changes.
- Keeping clients’ records.
- Giving information and institutions to clients on insurance choices.
Average Salary of an Auto Insurance Agent
The average salary of an auto or car insurance agent ranges from $30,000 to $60,000 per year in the United States. However, there are several factors that affect the amount insurance agents earn, and this includes the type of agency or company they are working for, experience level, and location.
Auto Insurance Agent Requirements
To become an auto insurance agent, here are the requirements that you need to meet to be considered “qualified”:
- Attention to detail.
- High school diploma or equivalent.
- Organizational skills.
- Passing the state insurance licensing examination.
- Knowledge of insurance products and rules.
- Excellent sales and communication skills.
- Finish state-mandated pre-licensing education.
How to Become an Auto Insurance Agent
Multiple steps need to be followed to begin the journey of becoming an auto insurance agent. Here are the necessary procedures you need to follow:
- Understand the state requirements
- Complete pre-licensing education
- Succeed in the state licensing exam
- Get your license
- Explore agency opportunities
• Understand the state requirements
The first thing you need to do in your journey to become an auto insurance agent is familiarize yourself with and understand the requirements of your state. Yes, each state has its own set of criteria for aspiring insurance agents. This can be background checks, education, or exams.
• Complete pre-licensing education
Register and successfully complete the mandatory pre-licensing course required by your state. You will have basic knowledge about insurance regulations and practices if you enroll in this program.
• Succeed in the state licensing exam
Pass the state-administered insurance licensing examination. This exam tests your understanding of insurance concepts and laws applicable to your state.
• Get your license
Go to the insurance regulatory authority of your state and apply for licensure if you pass the examination. You may have to pay applicable fees and provide certain documents.
• Explore agency opportunities
Now, you can start searching for a job once you obtain your license. There are many agency opportunities to explore. However, make sure you choose a reputable insurance brokerage or agency.
Frequently Asked Questions
How do insurance agents make money?
Insurance agents usually make their money through commissions on the insurance quotes they sell. What’s more, these commissions are a percentage of the premium paid by the policyholder.
How many hours per week does an insurance agent work?
On average, the working hours of insurance agents are between 40 and 50 hours per week. Still, keep in mind that the working hours of insurance agents can differ. Some agents may work evenings and weekends to meet the customer’s schedule, while others work full-time hours.
Are insurance agent jobs considered in-demand occupations?
The need for insurance coverage is growing every day, and so is the demand for insurance agents, especially in aspects like property, health, auto, and life insurance. The economic conditions and locations are factors that also affect the level of this demand.
