Auto Insurance Agent: Career and Salary Facts
Research what it takes to become an auto insurance agent. Learn about education requirements, job duties, salary and job outlook to find out if this is the career for you.
What Is an Auto Insurance Agent?
Auto insurance agents are responsible for recruiting and assisting clients of auto insurance companies. They call and meet with potential clients to explain various policies and coverage their company offers. They may talk about a client's current coverage and how they can improve it or better meet their needs. Some agents may even be able to customize plans to meet a client's needs. These professionals will usually provide potential clients with cost estimates and comparisons of different policies. Auto insurance agents are typically responsible for managing policy renewals and keeping records of their policies. See the table below for some quick job facts including job requirements, job outlook and salary statistics.
|Degree Required||High school diploma|
|Licensure||Insurance sales people are licensed by state|
|Key Responsibilities||Sell clients insurance coverage for vehicles, maintain records, prepare insurance quotes and answer insurance related questions|
|Job Growth (2018-2028)*||10% for all insurance sales agents|
|Median Salary (2018)*||$50,600 for all insurance sales agents|
Source: *U.S. Bureau of Labor Statistics
What Does an Auto Insurance Agent Do?
As an auto insurance agent, you'll sell insurance coverage for automobiles, motorcycles and other types of vehicles. Your work involves obtaining new clients and renewing the insurance of current clients when their policy expires. You'll be expected to maintain records, recruit new clients, prepare insurance quotes and answer questions from clients and potential customers. In the case of a car accident, you'll need to quickly assist your policy holder through the claims process.
Where Would I Be Employed?
As an auto insurance agent, you may work for a specific insurance carrier as a captive agent. This means you're only able to offer insurance products from that particular company. Or, you may work independently or for a general insurance agency, which allows you to work a broker, selling a variety of products and policies from several insurance companies.
What Are the Requirements?
To become an auto insurance agent, you'll need a state license to sell property and casualty insurance. The licensing process requires a certain number of classroom hours along with an exam. You may need to complete continuing education classes to keep your state license current. Employers may expect you to have your license before they will hire you for sales.
You'll need at least a high school diploma, but many employers may require a college degree. Degree majors that you may want to consider are finance, economics and business. You may also need to have experience in sales.
What Salary Could I Expect to Earn?
As of May 2018, the U.S. Bureau of Labor Statistics (BLS) noted that insurance sales agents in the 10th-90th percentile earned $27,500 to $125,610 per year. The BLS also reported that the median annual salary of all insurance sales agents, including auto insurance agents, was $50,600 (www.bls.gov).
The states with the highest number of insurance sales agents were California, Florida, Texas, New York and Ohio. The top paying states for insurance sales agents were Massachusetts, New York, Alabama, Pennsylvania and Connecticut.
What Are Some Related Alternative Careers?
Advertising sales agents and real estate brokers and sales agents are a few related jobs that require a high school diploma. Advertising sales agents contact various businesses to try and sell them advertising space. They may also make suggestions on advertisement sizes and formats. Real estate brokers and sales agents help their clients sell property, such as a house. They may also help clients buy or rent different properties.