An independent agent is an insurance agent that sells insurance policies provided by several different insurance carriers, rather than just a single insurance company. The independent agent acts as a middleman to connect insurance buyers and sellers in order to facilitate a transaction.
How does an independent insurance agency work?
An independent agent is an individual licensed and authorized to sell different insurance companies’ products to consumers . Because they’re not bound to one insurance company, they may furnish quotes from multiple insurance providers at once, providing an array of coverage options, services, and prices.
Is it better to use an independent insurance agent?
An independent agent can do important things for you: Agents have at their disposal the ability to quickly check prices and coverages with dozens – if not hundreds – of different insurance companies. Since rates vary widely an independent agent can very likely get you a better deal than you can get for yourself.
How does an independent agent sell insurance?
- Decide what kind of insurance agent you want to be. ...
- Decide which insurance products you will sell. ...
- Review your state’s licensing requirements. ...
- Take an insurance license exam. ...
- Submit your licensing application and background check.
What is the advantage of working with an independent agent?
Because they can shop around on your behalf, they can usually help you find the most and best coverage for your situation. Meanwhile, a choice in companies means independent agents have access to discounts and can take advantage of more competitive rates, resulting in savings that are passed onto the insured.
How much commission does a State Farm agent make?
As an insurance agent, you can get a commission cut of 40% to 90% on the full premium of your sales in the first year. From the second through to the fourth year, your follow-up commission on those same sales will be between 2% to 5% .
How do independent agencies make money?
Independent agents receive commissions for the policies that they sell and are not considered employees of any specific insurance company. An independent agent may be contrasted with a captive agent, who can only sell the products of the company they work for.
Why do insurance agents quit?
26.2% voted a lack of money for leads as their primary reason why they quit. Less important reasons agents quit selling insurance include running out of prospects, personal issues like health problems, and discovering the business wasn’t a right fit.
Can independent agents sell State Farm?
State Farm, Allstate, and Geico are all insurance companies that will only sell their products through their agents . They don’t permit their agents to sell any products from any other insurance companies. Hence the word captive. These agents are captive to a single insurance company.
How much do independent insurance agents make?
| Annual Salary Hourly Wage | Top Earners $200,000 $96 | 75th Percentile $111,000 $53 | Average $91,323 $44 | 25th Percentile $42,500 $20 |
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Is it hard to become an independent insurance agent?
Finding clients as a new independent insurance agent may be difficult, but it is not impossible . Family, friends and former work colleagues are all people who could be approached. By providing a great service, agents earn a positive reputation that enhances their opportunities.
How do I become a successful independent insurance agent?
- 1) Dress More Professionally. ...
- 2) Avoid Using “Young” Slang. ...
- 3) Find Common Ground. ...
- 4) Ask Prospects About Their Kids. ...
- 5) Reference Combined Experience. ...
- 6) Learn From Experienced Coworkers. ...
- 7) Be Enthusiastic. ...
- 8) Follow the Markets.
What are the benefits of being an insurance agent?
- You can give back to your community. ...
- You’ll find an abundance of opportunities. ...
- You can develop a broad skill set. ...
- You’ll enjoy job security. ...
- It’s easy to get started.
Can you work for multiple insurance companies?
An independent insurance agent is able to apply for appointment with multiple companies. This allows the agent access to a variety of insurance products from multiple agencies.
What is a captive agent?
A captive agent is an insurance agent that works for only one insurance company . Captive agents only sell the products of the insurance company they work for and cannot help individuals outside of that offering.
Do State Farm agents get base salary?
How does the salary as an Agent at State Farm compare with the base salary range for this job? The average salary for an Agent is $44,590 per year in United States, which is 0% lower than the average State Farm salary of $44,795 per year for this job.
