How Much Do Insurance Agents Make?

Only a few industries, besides the financial services sector, provide the possibility for relatively inexperienced workers to earn a sizable salary in the first year of employment. Few jobs in the financial services sector also give newbies the chance to start off earning as much money as a life insurance agent does. An insurance agent who works hard can actually make over $100,000 in their first year of sales.

Success as an insurance agent, however, is not free. Because of the difficulty of the work, most people leave the sector sooner rather than later. The word “no” is said by insurance brokers much more frequently than the word “yes.” Additionally, it’s not unusual for the word “no” to be spoken while using a significant bit of profanity and the figurative “door in the face.”

Furthermore, a lot of individuals have a negative opinion of insurance agents; some even compare them to glorified con artists. However, for individuals who can handle the possibility of rejection, becoming a life insurance agent can be worthwhile because of the income and flexibility.

How Much Do Insurance Agents Make?

An insurance agent can make more than $100,000 in their first year, according to the Bureau of Labor Statistics (BLS). As of May 2020, the average yearly salary for insurance sales agents was $52,180. The industry’s bottom 10% of earners took in less than $29,000, while the top 10% took home more than $127,840.

Commissions are a major factor in the disparity in wages among insurance brokers. Simply, you’ll earn more the better a salesperson you are. However, there are other elements that affect how much an insurance salesperson makes.

Insurance agent average salary

It is crucial to take both the average income and the salary range into account when determining the national average compensation for a position. When evaluating a job offer, there are additional salary considerations to keep in mind, such as overtime pay, bonuses, and benefit packages. The average annual pay for insurance agents in the United States is $79,965, with a salary range between $17,000 and $188,000, though there will always be variations in pay by profession and region throughout this article. See Indeed for the most recent wage data.

Insurance agent salaries can include a basic income as well as commissions and/or bonuses. While captive insurance agents typically receive a base pay along with lower commissions or bonuses, independent insurance agents are typically only paid on commission.

What Factors Affect the Pay of Insurance Agents?

The important elements consist of:

Type of Insurance Agent

Agents that sell insurance might either be captive or independent. Only one company’s insurance is sold via captive agents. Multiple carriers’ policies are represented and sold by independent agents. However, agents often spend the majority of their time marketing their goods and services, regardless of the type of agent they are or the commissions they receive.

Insurance Policy Type

There are many different types of insurance coverage, including commercial property insurance, auto insurance, and numerous others. As an insurance agent, your primary goal is to sell these products to individuals, families, and organisations so they can be protected from suffering a financial loss in an emergency.

For you to enhance your revenue, each form of insurance provides a unique set of chances for upselling to existing clients or recruiting new ones. People and organisations are constantly looking for trustworthy insurance coverage solutions to protect their assets. If you want to increase your sales, it’s critical to understand exactly what each insurance line’s clients require and to meet those needs.

There are also particular specialist insurance policies that might offer lucrative chances for income, such insurance for food trucks, planes, and personal trainers, to mention a few.


The cost of living, accessibility to transit, accident rates, public health, and other factors differ by state. These data are very important in setting insurance rates and premium amounts. Additionally, the opportunities available to you in a tiny town with a modest population are limited. A large city will also give you more opportunity to meet new clients because there are more individuals there.

Commission Structure

The majority of insurance agents rely primarily on commissions as their main source of income. Captive agents selling auto and house insurance will reportedly make 5% to 10% of the first year’s premium commission, according to The commission rates for these kinds of insurance, however, are typically approximately 15% for an independent agent.

Did you realise? The state of New York has one of the harshest insurance laws, known as Insurance Regulation 194, according to the Department of Financial Services (DFS). According to this, if a client requests it, insurance brokers and agents working in New York must provide written disclosures of any year-end bonuses they may have received from carriers in addition to their commission rates.


Most insurance providers do not have stringent guidelines for choosing insurance agents. Because most businesses have internal training programmes for new agents, many do not require prior insurance sector experience. They learn about the goods they will sell through these programmes.

In order to work as an insurance agent, you must:

  • High school diploma (some employers can also want a bachelor’s degree from you)
  • an insurance licence awarded by the state Product sales experience
  • abilities in business management
  • strong communication abilities
  • Patience and a cheerful outlook
  • Formal training is more important than a college degree when working in the insurance industry. Although not typically regarded as mandatory, having a bachelor’s degree in a related discipline can be beneficial. In the insurance sector, there are additional options for on-the-job training and exposure to expertise that may not be available with a college degree.

Many insurance brokers start out by assisting more seasoned brokers. It’s a fantastic method for them to get to know their coworkers and gain practical experience.

You don’t have to be an agent forever; there are other work alternatives available in the insurance sector. Salary ranges are greater for jobs like insurance broker and insurance underwriter. As you gain more expertise in the topic, you can investigate these possibilities.


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