How to Become an Independent Insurance Agent

How to Become an Independent Insurance Agent

If you’ve been interested in learning how to become an independent insurance agent, you’ve come to the right place! When potential customers are choosing an insurance agent, they’re looking for someone they can trust. And we’re not talking about door-to-door salesmen type of stuff. You know those slimy car salesmen trying to get whatever they can off the lot? That’s exactly what people are trying to avoid. 

That’s why many people turn to independent insurance agents for their policies, which means becoming one is a great business move. So, if you’re considering becoming an independent insurance agent, but aren’t sure how to do that, let’s get into it. 

What is an Independent Insurance Agent?

To start, it’s important to understand what an independent insurance agent is. An independent insurance agent is someone who acts as the middle man between a client and the insurance companies. Instead of working with an agent that’s specific to one company, an independent insurance agent represents several different ones. 

This is excellent for customers because instead of being bullied into choosing from one company, the agent will give you plenty of options. This also keeps things interesting for the agent instead of listening to the same gecko every day. 

Being an independent insurance agent gives you the opportunity to expand your horizons when it comes to selling policies. You aren’t limited to the policies of one company, making it easier to help your customer and make that final sale. 

How Much Do Independent Insurance Agents Make?

This is the burning question on everyone’s prospective agent’s mind. Once you learn how to become an independent insurance agent, how much are you going to make? If you’ve been researching working in the field, you already know that the income can vary greatly due to being based on commission. 

The good news is that independent insurance agents will usually make more than captive agents. According to ZipRecruiter, the national salary average in the US for independent insurance agents is $89,831. That comes out to roughly $43 an hour which is a pretty big chunk of change if you ask us. 

A big part of this is because independent insurance agents are, well independent. They are self-employed so the insurance companies aren’t paying to have you as an actual employee.

Keep in mind that as a self-employed person, there are other costs to account for. Since you’re working for yourself, you won’t have taxes taken out. It’s EXTREMELY important that you keep track of this so you aren’t handing your entire life over to the IRS come springtime. Other overheads can include renting a workspace, marketing, accounting, and any other service necessary to run your business. 

How to Become an Independent Insurance Agent 

As an independent agent, you’ll be running your own business and making your own hours. What’s not to like? So, now that you’re familiar with what an independent insurance agent is, let’s dive into how to become one! 

Get Educated 

First, you need to have a high school diploma or equivalent such as a GED. A four-year college degree can give you a leg up, but it’s not totally necessary. If you do want to get a college education, your major should be one of these: 

  • Marketing
  • Business Administration 
  • Finance 
  • Anything in this realm 

Even though it isn’t required, a college degree could help you hone the skills needed to run your own business. And don’t think you’re getting out of taking exams if you skip this step, you still need your license. 

Obtaining Your Insurance License 

You cannot sell insurance without proper licensure. Licensing requirements vary by state, so it’s important to do your research. Your state may also have different background requirements. For example, in some states, you can’t have anything on your criminal record while in others minor violations are acceptable. 

Once you pass your licensing exam, you’ll need to submit your information to the licensing board. Passing your exam and obtaining your license will show your clients you know anything and everything there is about insurance. They might even call you the insurance wizard, who knows!

Get Insurance For Your Insurance Business

Yes, it sounds redundant but having your own insurance is essential for an independent insurance agent. Since you’re not protected by the companies you work for, having your own insurance will cover any risks. The policy you should look into is the Errors and Omissions policy. It was created specifically for insurance agents. 

Market Yourself

Marketing is crucial when you become an independent insurance agent. Think of yourself like a Tik Tok influencer building their brand. You’ll need to build a client base and that’s going to take some work! In the insurance world, local advertising is just as important as online advertising. You also need to remember you’ll need to market to clients AND insurance companies.

Final Thoughts

To sum it up, learning how to become an independent insurance agent is rather simple. Once you’re established, companies like G&G Insurance are here to hire you! Contact us today and let’s get started! 

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