If you’ve been wondering how to become an auto insurance agent, you’re not alone. Thousands of people are looking for a change from the same old corporate environment, and the insurance industry is no different. In this article, we’ll discuss the necessary steps to become an agent, from finding your state’s auto insurance license requirements to earning commissions from home. We’ll also discuss how to get started with pre-licensing training.
Before you can sell insurance products, you must be licensed to do so. Despite this requirement, there are ways to become licensed without an accredited degree program. One way is to take pre-licensure training. Such programs help you develop your core competencies and create a benchmark for the industry. You can also complete these training programs online, at regional training facilities, or both. Depending on the state and the type of auto insurance agent you want to be, pre-licensure training may take a day, half a day, or twenty to forty hours of training.
To become licensed as an auto insurance agent, you must complete pre-licensure training. Most states have their own requirements and guidelines, and they vary by state. Depending on the state, pre-licensure training may require twenty to forty hours of general insurance education as well as state-specific information. Pre-licensing training increases your chances of passing the state exam, which can range anywhere from 50 to 200 multiple choice questions.
State-mandated license requirements
Before you can sell insurance products, you need a state-mandated license. Without a license, you may face penalties and even legal action. State-mandated license requirements vary from state to state, but they are usually the same. You need to complete at least 20 hours of pre-licensing classes and pass an exam. This course may include classroom training or be offered online. Depending on the state you live in, the course can last a day or more. It may require 20 to 40 hours of online training, but it is definitely worth it!
The cost of acquiring a state-mandated license varies from state to state, but typically costs between $150 and $400. However, you can usually earn while preparing for your license exam. The exam will usually involve multiple-choice questions to test your knowledge of insurance terminology and numbers. There are also practicality-based scenarios to test your knowledge. Most states require a passing score of 70 or higher.
Earning a commission
The commission that you earn as an auto insurance agent depends on several factors. Your location plays a role, as agents in big cities generally earn more money than those in smaller areas. However, a commission of five to twenty percent per sale is common. As long as you work hard and produce quality service, earning a commission as an auto insurance agent should not be a challenge. Moreover, it will be easier to make ends meet if you’re self-employed and have the right work environment.
Many people start as Customer Service Representatives. This position is not the best fit for people with a background in sales. You’ll earn a commission from every insurance policy you sell, and you’ll usually earn 5% to twenty percent of that. You’ll also receive a commission on any renewal policies, so you’ll be paid again for your hard work. Depending on your level of skill and experience, you can expect to earn a larger commission than your competitors.
Working from home
There are many benefits to working from home as an auto insurance agent. For one, you can eliminate the daily commute and geographic constraints of an office environment. You can schedule appointments in remote areas and obtain a non-resident license without having to leave your home. You can also get plenty of exercise in between appointments and eat healthier meals while you work. It’s a win-win situation. Here are a few other reasons why you should consider working from home as an auto insurance agent.
One of the benefits of working from home as an auto insurance agent is the flexibility to work as you wish. You can still provide the same customer service, but you can also focus on a different type of clientele. Many insurance companies have an online platform that allows you to work from home. If you choose to work from home as an auto insurance agent, you can use it to market other products. A home office is perfect for this, because you can monitor your employees from the comfort of your own home.