What type of commission can I expect as an independent for auto insurance?

July 20, 2009 by admin
Filed under: Auto Insurance Specialists 

I currently have my L&H, and am looking to add P&C license. I want to work as an independent & I understand that Progressive is a good company for that. Of course, if you know of any others, please feel free to let me know, so I can do good comparisons!

My question is, what type of payout is the “norm” for indi auto? I know when you work for the companies, just like with L&H, the payout is considerably lower than when you are indi. Also, I dont think that the payout is nearly the same as L&H. Is that so? How do the renewals work?

Thanks!

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Comments

4 Comments on What type of commission can I expect as an independent for auto insurance?

  1. mbrcatz17 on Fri, 17th Jul 2009 7:31 am

    2. What’s "indi" auto? Indiana, or India? Commissions are about 10% for auto, regardless. The good news is, continuing commissions are ALSO 10%, so in the LONG run, it’s easier to build a business with P&C because your book will keep producing good commissions.

    The bad news is, it’s really hard to get an appointment with the multi-line carriers, unless you have a decent book of 100K to transfer over to them, that’s profitable.

    You might want to also consider Infinity Insurance, and nonstandard homeowners, Foremost Insurance, as they’re both pretty easy to get appointed with, and they don’t have book minimums.

  2. nurse ratchet on Fri, 17th Jul 2009 7:31 am

    3. I have done both P&C and L&H….still do. The P&C only pays once or twice a year, depending on the policy period. On health insurace, you get a monthly commission every time premium is paid. Usually health pays about 5% on group business, and P&C pays anywhere from 10 to 20%, depending on the company and type of coverage.

    I actually started out handling commercial P&C over 23 years ago, and added L&H in 1994. I prefer L&H personally. There aren’t a lot of agents that really know health insurance and the laws regarding it the way they should, too.

    I suggest trying them both and seeing which you prefer. By they way, I have always been an independent with the exception of the 6 year period I was a sales manager for a health insurance company.

  3. Paul K on Fri, 17th Jul 2009 7:31 am

    4. Why limit yourself to just auto? If you are going to sell p&c you need to sell all lines not just auto. Commission is usually paid annually with most companies paying 10-20% commission, work comp is sometimes less than 10%. You will get paid a similar commission every year the policy renews.

    I am not a Progressive fan because of their Progressive Direct business. I feel that with Progressive Direct they are taking some money out of their agents’ pockets.

  4. DFK on Fri, 17th Jul 2009 7:31 am

    5. It all depends. If you work on straight commission then you should get anywhere from 50% of the annualized commission for the first year and less on renewal. The annual commission on most auto policies is 15%. If you work on salary then it is a mute point. Being an independent gives you some flexibility on establishing a commission schedule.

    Some indi’s as you put it Pay anywhere from 50% to 90% of the auto commission. Go for it!

    Working for a direct writer …well… it;s written in stone. …you choose.

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