What are the pros and cons of being a car insurance salesperson?
Pro: Nearly unlimited income Pro: Typically set your own work schedule (unless you’re an associate agent) Con: You don’t sell, you don’t eat, as you usually work on commission only (again, unless you’re an associate agent working for an agent) Con: Long hours to get the business started Con: The numbers say that most don’t make it — for every 20 people insurance companies recruit, only 2-3 will make it long term and grow a successful agency Good luck. I suggest finding a great mentor, and company with an excellent training program (not just sales information, but on products, too, because unfortunately, a lot of insurance agents only know basic information about the products they sell, and it limits their ability to find appropriate prospects, and thus, make the MONEY they deserve).
Well, it’s a SALES job, which means you only make money if you SELL. Limiting yourself to just “car” insurance, isn’t a good thing. It cuts down on your product. Although most people NEED it, most people already HAVE it, and the people most willing to move to a new agent, usually are either the people that shop around every three months (meaning, you’re not going to keep the account very long) or have major issues (like, cancel for nonpay all the time). Honestly, if you’re thinking about going into the insurance business – ANY kind of insurance – you’re better off working for someone else for a few years. The pay will stink, if you have no experience, but at least there will BE pay, and you can get a feel for the business WHILE having someone else there to train you in it.
Look in the paper for a good independent insurance agent looking to fill a position. You will probably start out as an assistant, I did. You will process paperwork for the CSRs in the agency. You will work on salary though it is not a lot, but you will learn the policies & forms as you work. If you find you like it, ask to go to insurance classes to learn more. Once you do that you can start working on your license. It depends on the state what you need to do. Some require a certain amount of classroom hours & to pass the school final before you can sit for you state exam. Some states are self-study. Once you get your license, which will be Property & Casualty to sell auto insurance – hopefully there will be an opening for you to move up in the agency to a CSR position. You will be able to sell auto, home, boat, umbrella, motorcycle, etc on personal side & you will also be able to sell commercial insurance. Commercial insurance is where the money is especially if you become a producer.
It is very difficult to start out because most agents work straight commission. Expect for the first six months to be paying more money out for business expenses than you get in income. The second six month you might break even. Because of this 95% of the people that start don’t finish their first year. The pros and cons will be different if you are working as a captive agent or as an independent agent. The captive agent is usually the best way to get started because you have someone to help you and sometimes will also get financial help. A big con with being a captive agent is you can only sell that one companys’ policies, and one company doesn’t fit everybody. The pro with being independent is you can sell many different companies, although it may be very difficult to find a company that will let you sell their product without a track record. As a captive agent you can develop that track record. You will need to work 60 – 70 hours per week the first year. If you make it to the second
