Independent agents can be an invaluable source for understanding the complexities of insurance. They will ask all the pertinent questions to assess your needs, then tailor carrier and coverage recommendations specifically tailored towards you.
They live and work in your community, making them uniquely qualified to assist with local insurance requirements and shopping your policy with multiple carriers to find you the best possible rate.
1. Get Your License
If becoming an independent insurance agent is right for you, the first step will be meeting all state licensing requirements. This requires taking courses and passing your state’s insurance exam (which varies by state); many courses are online so they can fit easily into busy schedules; additionally you’ll need to submit to a background check and fingerprinting process (depending on state).
Once you’ve fulfilled all of the licensing requirements and passed the insurance exam, the next step is filling out an application for licensure with your state’s Department of Financial Services (DFS). Some states may require pre-exam training; after submitting an application you’ll be assigned a license number as well as instructions on where and when your exam will be taking place as well as what to do if it doesn’t pass on its first try.
Some states allow you to reschedule an exam free of charge, however it’s still essential that you come prepared. Use online resources or enroll in classes to hone your skills before the test itself which usually consists of 80 to 160 multiple choice questions.
Once you’ve obtained your license, you can begin looking for clients and quoting policies. Independent agents have access to multiple companies and policies than captive agents can, which enables them to find the ideal policy for every client. In addition to auto insurance needs, independent agents also help clients with homeowners’ and life insurance.
Independent agents can be of immense assistance for clients who’ve received a high-risk classification or who need their policy renewed, by shopping around for competitive rates to save them money and working with insurers who offer nonstandard coverage to protect those convicted of certain crimes or involved in multiple accidents or crashes – independent agents can provide more affordable options that keep driving records clean while also saving customers both time and effort by handling paperwork to submit to DFS directly.
2. Get Experience
Independent insurance agents don’t belong to one insurance carrier and can sell policies from different insurers, giving their clients greater choice when finding coverage to meet their unique requirements or for special events such as car accidents and home invasions.
Independent insurance agents often choose this path because they want more freedom in their job; however, independents receive less training and marketing support from their insurance company than captive agents do – making it harder for new agents to break in successfully.
Volunteer at a local insurance agency or attend seminars and workshops related to insurance to gain experience as an independent insurance agent. Doing this will give you an in-depth knowledge of the industry, how best to assist customers, as well as establish relationships among fellow professionals within it. Afterward, ask family and friends who already own coverage for referrals; reach out to community organizations where you can promote yourself while meeting prospective prospects.
State laws mandate continuing education courses for insurance agents in order to renew their licenses, with courses including ethics, law and insurance regulations available from many schools online and through local colleges. Attending such courses is vital in keeping up with changing trends and developments within the industry.
Insurance is an in-demand profession as everyone needs financial protection when driving cars, purchasing property, seeking medical treatment or operating businesses. As such, it makes an ideal career option for people who enjoy working with people while being willing to put in the hard work required for success.
As an independent insurance agent, you’ll earn commissions on every policy sold and renewed – expect between 5- 10% of premiums paid for auto and home policies respectively – in addition to earning commissions and receiving benefits like health and life insurance policies and professional development opportunities.
3. Get Training
Before becoming an independent insurance agent, it’s essential that you undergo any additional training required by your state. There are a variety of ways you can achieve this, from attending seminars on state insurance laws to pre-licensing courses. Furthermore, staying abreast of industry news and trends requires reading industry publications or visiting major insurers’ websites – keeping abreast is vital!
Once your initial training is complete, the next step should be selecting your specialty. Depending on your state of residence, different insurance lines may be permitted for sale as an independent agent in their state; some states allow selling all lines while others only permit property and casualty, life & health or commercial lines. Finally, taking and passing the licensing exam may prove challenging; to help prepare yourself properly it is advisable using resources specific to your line of insurance when studying for it.
Independent agents offer invaluable assistance for people with specific coverage requirements or complex coverage needs, since they’re often not limited to any one insurer. Furthermore, independent agents often have relationships with niche-focused insurers that they can leverage in finding policies tailored just to you.
Independent agents play an essential role in providing clients with proper policy education, which enables them to make more informed decisions regarding their coverage and save money. Independent agents can explain things such as policy options and discounts easily for clients to comprehend.
When searching for auto or homeowners insurance, an independent agent is an invaluable asset. They can also be of help if there’s an issue with your current policy; such as an increase in premium due to driving violations or receiving nonrenewal notice. An agent will shop around on your behalf for competitive rates to find you the most cost-effective solutions.
4. Get a Job
Beginning an independent agent business can be simpler than you may realize. No degree is necessary, but experience working in customer service or sales would certainly come in handy as would having a solid grasp on financial principles – taking some business or insurance classes may provide great preparation.
After successfully completing pre-licensure coursework and passing state exams, it will be time to find an insurance company willing to hire you as an independent agent – this way you’ll be ready to start selling policies and earning commissions!
Your commission rate typically ranges from 5-15% of premium for every new policy you sell and up to 15% for renewals. Most agents work either with salary and commission or on a flat commission rate basis; if you’re considering becoming an independent agent it would be advisable to research what salary ranges exist in your region before taking this step.
Successful agents often partner with multiple insurance providers to offer clients options when renewing policies, and to refer their customers to other agencies who might better meet their individual requirements.
Working with an independent agent also has other advantages: they can often provide quotes from various insurers to save customers both time and money by enabling them to compare rates and coverage options, as well as helping prevent them from being overcharged by one carrier.
Insurance is an essential service, indispensable to those who drive cars, purchase property, seek medical treatment or operate businesses. As such, demand will always exist and becoming an independent car insurance agent offers flexible scheduling and the opportunity to grow a successful business.
Prep yourself well as an independent car insurance agent and you could soon embark on an exciting and fulfilling career. No degree is necessary, but networking and staying informed on industry news is key for success. Once licensed, all that remains is finding and building your business.