During this current economic crisis people are more inclined than ever to ensure they are protected against financial loss. The only surefire way to sustain a financial safety net in the case of tragedy is through insurance. In California alone, billions of dollars a year are paid towards insurance. In the case of auto insurance, it is a crime not to have it if you are operating an automobile. Auto insurance agents are continuing to thrive during the recession and researchers are learning that auto insurance is recession-resistant because drivers are forced to have coverage. Automobile insurance is used to protect the costumer from any losses that might result from an accident or collision. In cases of theft, insurance can cover the total loss of a vehicle.
There are many niches in which an individual can become an insurance agent. Some of the more popular niches include life insurance, property and casualty insurance, and auto insurance. There are various reasons why more professionals are looking into the field of auto insurance.
Who is an Auto Insurance Agent? - There is no set background that an individual must have in order to be an auto insurance agent. Auto insurance professionals come from a variety of educational and corporate backgrounds such as marketing, finance, economics, and even creative fields. Although it's recommended, you don't have to possess a degree to be an agent.
Becoming an auto insurance agent is easy! All you have to do is:
- 1. Be at least 18 years of Age
- 2. Have 20 hours of prelicensing education. In order to get your 20 hours, you may sign up for courses through the Department of Insurance in your state.
- 3. Schedule the Examination
- 4. Pay the Exam Fee. The fee is usually between $39 and $41.
- 5. Pass the Examination
Pass the Exam first: An auto insurance agent that hasn't passed the exam is not an agent at all. It is not necessary for an auto insurance agent to have extensive formal education but it is necessary that the agent have the ability to pass a licensure exam.
What's on the Exam?
- 1. Study information that evolves around the insurance laws in their particular state.
- 2. The exam will include regulations, insurance fundamentals, and insurance laws pertaining to the state the exam is administered in.
- 3. Know basic information about insurance as well as a record of the state insurance laws.
Passing the Exam:
- It is beneficial to future auto insurance agents to request study guides that will give the individual better guidance on the most important areas that should be studied.
- Take the exam over and over if you fail! Most states offer the chance to take an auto insurance exam several times each month, so individuals can schedule a test date that is flexible for them.
How Much Cash Does an Agent Make?
One of the most important questions that potential agents have is how much money they can expect to make once they become licensed and start selling insurance. The basic answer is that a good insurance agent can make as much as they want to make. Some insurance companies will guarantee a certain income for the first few months, and after that period, agents begin to work on commission.
The type of insurance that is being sold also makes a difference in the revenue an agent will generate. Property and casualty insurance agencies typically pay 12-15% commission while life insurance agents pay as much as 100% commission. Insurance agents can make as little as $5000 a year or as much as $1 million per year depending on work ethic and potential clients available. Because of the unlimited earning potential, hundreds of people decide everyday to become auto insurance agents.
Because many agents work for commission, a high failure rate exists when a sufficient income is not pouring in to meet the agent's everyday needs, but those who stay with the business and begin to build can expect to accumulate a great income over time. How much agent can make.
The more clients that an insurance agent can obtain, the more successful their practice will be. One way many agents find clients is through offering a free insurance quote. For example, life insurance agents may offer a term life insurance quote, and auto insurance agents may give a potential buyer a comparison of several quotes to help them make a decision.
Reasons Why New Agents Should Partner with Big Firms:
- 1. They are given the skills needed to run their own business and the ability to hire and manage their own staff.
- 2. Major firms have already built strong reputations that new agents can take full advantage of.
- 3. Big Firms can provide Big Leads.
- 4. Reduced Risks! There is less of an assumed risk when working for firms like Nationwide, Progressive, or State Farm.
The majority of auto insurance agents do not initially begin their practice on their own. Partnering with larger agencies is often a key to being successful in the insurance field. Some of the biggest firms in auto insurance include, Allstate, Farmers, Geico, Progressive, State Farm, and Nationwide.
Being an insurance agent is an alternative for people looking for a recession-proof job in today's economy. As lay-offs become more frequent, individuals are becoming more inclined to go into business for themselves and becoming an auto insurance agent provides an opportunity. In today's economy more people are making sure they have taken the necessary steps to protect themselves against damaging events.
The prospect of steady income has become more unpredictable due to a global recession and the income that is acquired must be protected from unexpected events. Insurance provides the financial security that many feel they are losing. By having an insurance policy people are better able to reduce financial risks and protect the assets that they have.
Company where asked this question: Allstate, Farmers, Geico, Progressive, State Farm, and Nationwide