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How much commission do auto insurance agents make?

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Here's what you need to know...
  • Insurance agents can make as much as $100,000 per year
  • Up to 20 percent of an insurance agent’s income may be from commissions
  • A comparison tool lets you quickly review several insurance policies and carriers

When you purchase a car insurance policy, you may wonder how much money the insurance agent earns from your policy. Depending on the insurance agent and company, the agent could receive a salary and commission or just a commission. Agents that earn salaries and commission tend to earn more per year than agents that only earn

Agents that earn salaries and commission tend to earn more per year than agents that only earn commission. Unfortunately, in most states, what an insurance agent is paid is a tightly held secret.

However, the Bureau of Labor Statistics states that the median wage for all insurance agents was $47,860 in 2014. Unfortunately, that number is a yearly average that includes salary income and commission income.

If you are worried about being overcharged for your car insurance policy so that your insurance agent can earn more money, you should utilize the services of a comparison tool. Insurance comparison tools will not try to sell you more insurance than you need.

Instead, they take the information you provide and show you insurance policies that meet your criteria. Start comparing auto insurance rates now by using our FREE tool above!

Insurance Agent Average Annual Salaries

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What your insurance agent earns per year depends on whether he or she works for one insurance company or as an independent agent. Insurance agents that work for one specific company tend to earn more than insurance agents that operate independently.

According to U.S. News Money, the average yearly salary for insurance agents was $48,210.

The lowest paid agents earned $26,030 per year, and the highest paid agents earned more than $100,0000 per year.

Location also factors into what an insurance agent earns. Insurance agents based in large cities tend to earn more than agents that live in rural areas. This is because the city provides them with a broader customer base.

Insurance agents in Bloomington, IN, Farmington, MA, and Santa Ana, CA make the most money on average. If you’re worried about a potential insurance agent inflating your premiums in order to increase his or her paycheck, you can use a comparison tool to check car insurance policies and get several different quotes.

If you’re worried about a potential insurance agent inflating your premiums in order to increase his or her paycheck, you can use a comparison tool to check car insurance policies and get several different quotes.

  • Insurance agents earn anywhere from $48,000 to more than $100,000 per year
  • Large city agents make more than their rural counterparts
  • Independent agents earn less than agents working for one company

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Average Car Insurance Agent Commission

Auto insurance agents earn between 15 and 20 percent per car insurance policy, according to The Wall Street Journal.

For example, if your annual policy costs you $700 per year, your insurance agent earns between $105 and $140 for your policy.

Insurance agents may get additional income for customer retention and policy renewals, but those income sources are generally reliant on the particular insurance company.

Lowering Your Car Insurance Premium

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If you’re concerned about the cost of your auto insurance policy, you can take steps to make it more affordable by raising your deductible and ensuring you have all the appropriate discounts.

If you have a policy that includes comprehensive and collision insurance, you were required to choose a deductible, which is the amount you must pay before your insurance company repairs or replaces your car after an accident.

Typical deductible amounts range from $250 to $1,000.

Raising your deductible amount from $250 to $500 or from $500 to $1,000 can save you money on your premium each month.

The next step is to make sure you have all the discounts that apply to you. Insurance companies give discounts for safe drivers, seniors, and low mileage drivers.

You may also be able to get discounts if your car has certain built-in safety features.

If raising your deductible and ensuring you have all the available discounts doesn’t lower your premium enough to fit your budget, you can use a comparison tool to check the premium rates of several different insurance companies and car insurance policies.

Premium rates for auto insurance policies can vary greatly between insurance carriers:

  • Raise your deductible
  • Double-check your discounts
  • Lower your auto insurance coverage
  • Use a comparison tool to find a more affordable policy

Depending on the location of your insurance agent, his or her experience level and the particular insurance companies he or she works for, your insurance agent’s annual salary and commission could vary greatly.

In general, car insurance agents earn between 15 and 20 percent in commission and a salary. If you are concerned that you are paying too much for your car insurance, you can use a comparison tool to quickly receive information and prices for other insurance policies.

Start comparing auto insurance rates now by entering your zip code in our FREE tool below!

FREE Auto Insurance Comparison

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