how much money do auto insurance brokers make?
Question by Larry the Cable guy: how much money do auto insurance brokers make?
How do they get paid? and how much?
Best answer:
Answer by Professionals On Duty
in auto insurance the agents or brokers get about 20% of the total premium.
What do you think? Answer below!
October 17th, 2009 at 9:52 am
They get paid on commission. Depending on the company 8-15% of the premium. Some companies go as low as 5-6% on renewal. Don’t just write auto insurance, the turnover is huge. If a policy cancels after one month, you only get your commission % of that month only. You will have to “pay back” the commission on your monthly commission statement from the company. Remember, it takes about 3 yrs for a policy to become profitable to the agent, due to all the up front work that is involved in writing the policy. If you are truly a “broker” not an agent, you work for the insured to place their business with an agent & then you would either get paid by the insured (by a written agreement with them which would be regulated by the State what you can put in that agreement) or you may get paid by the agent a % of their commissions for the business you brought to them. If you get your property/casualty license, you can write auto/home/umbrella/boat/ motorcycle etc in personal and small business/commercial package/commercial auto/commercial umbrella etc in commercial. As you can see, it will take a long time to make any money and you have to retain as much business as possible. If you can keep 90% of your business every year, you are doing great.
Best bet, if you are looking for an insurance sales job, look for a producers job in an established independent agency. They probably make the best money in an agency.
October 17th, 2009 at 10:38 am
Depends on if they’re salaried or commissioned. And it depends on the kind of accounts. And where it’s located. Personal auto pays the least. Truckers pay the most, but it’s much harder to place.
October 17th, 2009 at 11:28 am
Auto Brokers (agents) get paid on Commission. The commission ranges from 10% to 15% of the premium depending on the company and the contract. If your premium is $600 every 6 months then the broker receives up to $90.
When you pay your bill the company sends the broker his commission check. usually on a monthly basis.