Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

Full Bio →

Written by

Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

Full Bio →

Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Oct 15, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right car insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Car insurance comparison shopping should be easy. We partner with top car insurance companies. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Key takeaways...

  • Most insurance companies and states do not require an agent to have a college degree
  • If convicted of a felony, there is a pretty good chance that you will not be granted a license
  • If you have poor credit, this may cause your insurance license application to be denied

Being a car insurance agent can be rewarding but it is also challenging. There are a number of requirements that you need to meet not only to become an agent but also once you are an agent.

There are a number of steps that you need to follow in order to reach your dream of becoming a car insurance agent.

Take the time right now to look for rates for car insurance by entering your zip code in the FREE quote tool above

Table of Contents

Do Your Research

AdobeStock_118704820-1600x1600

Starting a new career is a big step and it takes a lot of work and time to become successful. To ensure success and make sure that the insurance arena is the right career choice for you, take the time to research the industry.

It is worth making the effort now rather than starting the process and realizing that it is not the right path for you.

Speak with other car insurance agents from a variety of insurance companies.

Ask them how they got started in the business, what their experience has been like, and what their advice is. Let them know that you are interested in becoming an agent and ask them to be honest.

You may even choose to shadow one or multiple agents for a week. This is the best way to see exactly what being an agent entails.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Education

You may be considering becoming a car insurance agent as a high school student, college student, or as a professional in a different career.

Whatever stage of life you’re in, it is important to get whatever education you need to become an agent.

If you are planning on attending college, consider majoring in economics or business, as these areas tend to be preferred by agencies.

Even if you don’t plan on getting your bachelor’s degree, there are certain classes that will help prepare you for the insurance industry.

Classes that help hone your sales skills, as well as those that focus on public speaking, are important in regards to the communicating aspect of the job.

Examine Your Background

AdobeStock_85187385-1600x1600

You must be 18 years or older in order to apply for licensure. You also need to be a resident of the state where you want to become licensed.

Your past can have an effect on whether you can become an insurance agent or not. Most states will do a criminal background check on insurance applicants.

If convicted of a felony, there is a pretty good chance that you will not be granted a license.

A misdemeanor may not have as much of a negative effect and is usually investigated on a case-by-case basis.

If you have poor credit, this may cause your license application to be denied.

If this happens and you really want to become an agent there are things you can do to help improve your credit, according to Smart Money.

Keep in mind that fixing your credit is not an immediate thing and it may take years for your score to be up to par for an insurance license.

Compare Car Insurance Companies

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Licensing Requirements

Each state has requirements in regards to being licensed to sell car insurance. There are a number of ways you can get your pre-licensing education.

One is to go through the American Institute for Chartered Property Casualty Underwriters, which offers a variety of programs and classes, including continuing education classes.

You can find the requirements for your state through the Insurance License Exam website. Once you have satisfied the required coursework, you will need to take and pass an exam in order to receive your license.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Choose Where to Sell Car Insurance

AdobeStock_11469278-1600x1600

One of the big decisions you will need to make once you have your license to sell car insurance is how and where you want to sell it.

If you choose to open your own agency, the good thing is that you have the opportunity and ability to make a lot of money.

The downside is that it takes a lot of work and is risky.

Owning your own insurance business means that it is up to you and you alone to find clients to purchase your products.

You might need a small business loan for expenses until you start making a profit.

When you work in another agent’s office, your overhead and marketing expenses are often paid for by your employer.

For many agents, the best scenario over time is to combine both options.

Once you feel comfortable with the insurance industry and talking to others about their insurance needs, you can step out on your own.

Some agencies will allow you to keep your current clients by paying a certain amount to keep the business, while in other situations you will be starting over again completely.

Continuing Education

The insurance industry transforms often and, as an insurance agent, it is important to keep up with all of the changes.

Each state, and often each insurance agency, set a requirement for the number of continuing education (CE) credits that are necessary and how often they are needed.

Most states require that you renew your insurance license every year.

Continuing education is required in order for you to renew it. There are a number of ways that you can obtain credits for continuing education.

You can take classes throughout the year or you can take a seminar that covers all the applicable topics. In some states, online classes count for credit.

Scour the Internet right now to find affordable car insurance rates in your area by entering your zip code in the FREE box below!