How to become a Vehicle Insurance Agent advice, Starting property buying guide
How to become a Vehicle Insurance Agent? Everything You Need To Know
4 May 2022
Entering the insurance industry is exciting and appealing. Despite the competition, there’s always a place for one more insurance agent to sell more policies and help people protect their family, property, and future. It’s a flexible career where you have the freedom to work with your strengths.
An insurance agent can either choose one specialization or offer different policies. Moreover, the agent can work as an employee or freelancer. Since each state has different requirements to become an insurance agent, it can take a few weeks or months to become one. In this post, we’ll discuss how you can become a vehicle insurance agent and build a career in the industry.
What Does an Insurance Agent Do?
In simple words, an insurance agent sells policies. It means that the agent has to identify the target audience, prepare a strategy to approach them, convince them to invest in a policy, and complete the deal. It can be a long-drawn process in many instances.
A successful insurance agent can provide the right policy to the customers and sell more policies in the given duration. Since most people want affordable, low-cost, and cheap insurance coverage, it requires some skill to balance the premium and policy offerings.
If you can help your customers find affordable auto insurance coverage for their cars, trucks, vans, etc., you’ll gain a good reputation and attract more customers.
Types of Insurance Agents
There are basically two types of insurance agents, as we mentioned above.
An independent insurance agent is a freelancer who doesn’t belong to any insurance company. The agent sells policies from different insurers, depending on the customers’ requirements. Such agents are also called brokers and can easily get the best deal. You can also set up a small business and hire other agents to work for you. A team of independent insurance agents can come together to form a company and offer the cheapest vehicle insurance to the customers. It gives you more freedom, even if you have to use your own resources.
The captive insurance agent sells the policies of only one company. The agent is a representative of a brand or an insurance company. If you join a popular insurance company, you can use the brand image to further your sales and sell more policies. For example, Geico, State Farm, etc., are the top insurance companies in the US. The advantage of being a captive insurance agent is that you don’t have to spend your resources or take care of the backend work. However, your work can get tough if the insurer doesn’t offer competitive premium rates.
Understand State Licensing Requirements
The first step to becoming a vehicle insurance agent is to find out what the state requirements are. While there is no definite degree you need to become an insurance agent, you need a state-approved license to officially become an insurance agent. In many states, having a high school degree or GED is enough. However, you need to clear the licensing exam to get the license and start selling policies.
At this point, you also need to ponder over the specialization. The tests for vehicle insurance, health insurance, general insurance, etc., are different. You need to take the tests separately for each one. If you only want to focus on vehicle/ auto insurance, one exam will be enough.
Clear the State Exam
Join courses or diplomas for risk management, insurance, etc., to add value to your resume. You might also have to complete mandatory courses, as per the state’s licensing requirements. In some states, you need to attend only a one-day course, while in other states like California, you have to complete 20-40 hours of online training.
Then, prepare for the state licensing exam and clear it to be eligible to become an approved insurance agent. You might have to show proof of your completed training to apply for the exam.
Submit the Application to the State Department
Once you pass the state exam, you need to submit your application and relevant documents to the state department for verification. A few states have a mandatory background check and fingerprint matching to ensure that you are suitable for the job. This will take a while, during which you can plan the next stage of your career.
Join an Insurance Company/ Agency
Do you want to become a captive auto insurance agent or an independent insurance agent? Though you can change your plans any time, it’s always better to have a clear idea of what you want to do. Start networking and make a list of potential leads to pursue the instant you get the license. Networking has to be a continuous process so that you keep earning commission and make a living as an insurance agent.
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