How to Become an Auto Insurance Broker
Learn how to become an auto insurance broker. Find out more about the job duties, license requirements, and more, so you can determine whether this career is the right fit got you.
Career Information at a Glance
An auto insurance broker helps customers find and purchase the best auto insurance plans for their needs. Only a high school diploma is required, although a bachelor's degree in areas such as economics, accounting, business management, or marketing might increase a broker's job opportunities. Read on to discover more about this career.
<table border="1"><tr><td> <b>Education Required</b> </td><td> High school diploma</td></tr>
<tr><td><b>Training Required</b> </td><td> On-the-job</td></tr>
<tr><td> <b>Key Skills</b> </td><td>Analytical, customer service, communication, self-confidence, initiative</td></tr>
<tr><td> <b>License</b> </td><td> Required by all states</td></tr>
<tr><td> <b>Job Growth (2020-2030)</b> </td><td> 7% (insurance sales agents)*</td></tr>
<tr><td> <b>Median Salary (2020)</b> </td><td> $52,180 (insurance sales agents)*</td></tr>
</table><p><i>Sources: *U.S. Bureau of Labor Statistics (BLS)</i>
</p><h3 id="section---WhatDoesAnAutoInsuranceBrokerDo">What Does an Auto Insurance Broker Do?</h3><p>Auto insurance brokers are responsible for finding the best car insurance coverage for their clients at the best possible price. They work directly with their client and sell products from different insurance companies. An auto insurance broker interviews client to find out about their existing coverage, risk profile, and car insurance requirements. They research companies to find the best policies and ensure that their clients fully understand their policy's terms. Auto insurance brokers must stay current with the latest rules and regulations regarding insurance coverage for their state. They need to keep detailed records, handle insurance renewals, and maintain business relationships with their clients.
</p><h3 id="section---WhatTrainingAndSkillsDoAutoInsuranceBrokersNeed">What Training and Skills Do Auto Insurance Brokers Need?</h3><p>Most auto insurance brokers gain training and experience while on the job. Depending on the job, entry-level brokers may shadow a more experienced broker to learn how to interact with clients. Employers often require that brokers take continuing education courses, so they can stay updated on any changes regarding auto insurance regulations.
</p><p>Auto insurance brokers need to have strong customer service skills, including listening and speaking, so they can effectively communicate with their clients. They must have the analytical and problem-solving skills needed to evaluate an individual client's needs and recommend the appropriate policy. Auto insurance brokers need to develop self-confidence and initiative to contact prospective clients and seek out new customers.
</p><h3 id="section---IsALicenseRequired">Is a License Required?</h3><p>All auto insurance brokers need a license from their states' insurance department before selling insurance. The requirements needed to obtain a license varies by state and type of insurance. In general, requirements include having a minimum amount of training hours, passing an exam, and being fingerprinted. Prospective auto insurance brokers should check with their states' insurance department to determine the exact requirements.
</p><h3 id="section---DoAutoInsuranceBrokersNeedCertification">Do Auto Insurance Brokers Need Certification?</h3><p>Certification is not needed to become an auto insurance broker. However, gaining a certification may help with career advancement by showing that the broker has gained a certain level of expertise. there are several organizations that provide certification opportunities. The National Alliance for Insurance Education and Research offers several certifications, such as the Certified Insurance Service Representative (CISR) and the Certified Insurance Counselor (CIC). Brokers need to complete training courses and pass an exam to earn these designations.
</p><h3 id="section---WhatAreTheSalaryAndJobOutlook">What Are the Salary and Job Outlook?</h3><p>As of 2020, the median salary for an insurance sales agent was $52,180, according to BLS. At that same time, this career had a wide range of salaries, from $29,000 to $127,840. Employment of all insurance agents is expected to grow by 7% from 2020-2030, which is as fast as the average of all jobs, notes the BLS. As clients continue to do their own research and buy insurance online, the demand for auto insurance brokers may decrease somewhat. However, brokers are still needed to help clients understand their policies and choose the best coverage for their needs.</p>