How to be a car insurance agent in the United States?

Are you communicative and negotiator? Do you like sales and even more the income you can receive from commissions? So, knowing how to be a car insurance agent in the United States will be very useful to you. This is exactly what we are here to explain to you! We will tell you what the state and business requirements are that you will have to meet to work as an automobile insurance broker and we will also clarify many doubts that people who want to enter this labor sector usually have.

How to be an insurance agent in the United States?

Although it is not a very complicated job, if you want to be a car insurance agent or broker in the United States, you must follow a learning process. There is a minimum amount of knowledge that is required by law in each state, and in most states it is mandatory to obtain a license to work as an insurance agent. In addition, many insurers require training courses that are taught by them.

What you should know about the work of an insurance agent

If you have thought about being an insurance agent, it is best to first obtain as much information as possible about the career, so you can be surer that this job is right for you. In this sense, it is important that you know:

Auto insurance agents work independently or for an insurance company. They sell insurance policies to vehicle owners, usually on commission. Most agents work through an auto insurance agency, like AllState Insurance, for example, while about 20% of agents work independently.
Much of an insurance agent’s job revolves around finding sales. Your work will be a combination of telephone contact and face-to-face contact. If you work independently, both hours and income are quite unpredictable.
Although the agent works in an insurance company, much of his income comes from commissions and not from a salary. For this reason, agencies tend to have a high level of turnover. And for the same reason, having sales experience when entering the sector can give you more chances of success.
Emotional intelligence is an important aspect for an auto insurance agent. You’ll need to listen to customers and understand what they want and need from a policy in order to make the right recommendations. This will help you learn how people work and could improve your ability to get more clients. Remember that the ability to interact with people is vital for an auto insurance agent, as you will be spending much of your time working face-to-face with clients.

Necessary training to be a car insurance agent in the USA

Some of the best companies require a four-year degree in any area that has to do with business and/or finance. They may also require that your college education be specialized in the area of insurance. Fortunately, many community colleges and business schools have two-year training programs for this industry.

However, it is important that you know that there are insurance companies that do not require prior education or training because they offer their own courses. In this way, they guarantee that the agent is trained to approach the business in the same way that the company does. In these cases, the company subjects the new agent to extensive training courses in order to prepare them to obtain the license.

Auto insurance agent license

As we noted earlier, almost all states require auto insurance agents to be licensed. Also, keep in mind that each state’s requirements may be different, so it’s important to educate yourself on your state’s specific requirements.

Please note the following information before beginning the licensing process:

In some states, only the licensing exam is required. However, other states require, in addition to the exam, a bachelor’s or study degree. If you lack the required training you will not get the license.
You can usually find information about licensing requirements on your state government website. You can also ask a known agent about the licensing process.

In states where a bachelor’s or bachelor’s degree is not required, candidates can simply study their state’s insurance law. In this case, it is useful to review the information provided by the insurance department of the same state.

How to obtain a license to sell car insurance?

In order to sell car insurance in the USA you must have a Property & Casualty license. Here are the basic requirements to obtain it:

Take a pre-licensing course: Approximately half of the states have training requirements to obtain this license. Whether it is mandatory or not, it is highly recommended that you take the corresponding courses.
Take and pass the exam: you can take the exam in person at the indicated place online. Keep in mind that the exams have a limited time (between an hour and a half and two and a half hours). The number of multiple choice questions varies by state (between 50 and 200). The percentage needed to earn a passing grade also varies by state, but is typically between 70% and 80%.
Fingerprinting: Most states require licensed agents to be fingerprinted and undergo a background check. Typically, there is a fingerprint technician at the location where the exam is performed.
Get your license: After you pass your insurance exam, you can apply for your license. This process usually takes a few weeks depending on how busy they are.
Comply with the continuing education process: After becoming licensed, states require insurance agents to undergo periodic continuing education (CE) to refresh their insurance knowledge and learn about new laws affecting the insurance industry. insurance. CE requirements also vary by state.