Last Updated: September 8, 2022

Secrets To Becoming An Expert Car Insurance Broker And Make More Sales

According to Statista, the global insurance industry is worth more than 5 trillion U.S. dollars. The insurance industry employs millions of people in various kinds of job roles. Some of the most common ones are:

  • Insurance agent
  • Customer service representative
  • Insurance broker
  • Risk consultant
  • Insurance adjuster
  • Underwriter

All the different job roles are equally important in an insurance company. There are always three parties in insurance: the insured, the insurer and the insurance agent or broker. While insurance agents are more common, insurance brokers are more preferred by the client base.

In this blog

How To Become An Insurance Broker

Becoming an insurance broker is not as easy as it sounds. You must complete pre-licensing requirements like coursework, biometrics, and an exam before you can become licensed in your state of choice. Depending on what type of license or licenses you want, the rules are different for each state.

Brokers are generally there to cater to a client’s needs. Hence, most brokers aren’t tied to insurance companies. You are free to think and act in your client’s best interest and work for your personal profit.

Here are some simple steps to become an insurance broker:

  • Research on your state requirements
  • Enroll and complete coursework
  • Sumbit biometrics
  • Take the exam
  • Submit application
  • Get insurance broker band

After your fingerprint is verified and you pass your exam, you will become an insurance broker.

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What Next?

After you are a licensed insurance broker, we would recommend you find your niche. Finding your niche can depend on many things, such as your interest or the market trend in the area you live in. One of the most popular niches to get into as an insurance broker is car insurance.

As a car insurance broker, you have a bright future ahead of you. Car insurance is mandatory in almost all states. As a car insurance broker, you can make 10% to 25% per every policy you sell. The policy rates, however, vary according to the state you’re operating in.

According to Marketwatch, here are the states with the highest and lowest premium rates:

Selling Car Insurance with Highest Rates:

State Car Insurance Premium Rate
Florida $2,587
New York $2,498
Louisiana $2,351
Michigan $2,105
Rhode Island $2,066

Selling Car Insurance with Lowest Rates:

State Car Insurance Premium Rate
Maine $831
Ohio $998
Wisconsin $1,049
Idaho $1,055
Iowa $1,122

As a car insurance broker, it would be beneficial for you to sell in states that have higher premium rates. When you are in the car insurance business, it is important to take advantage of every opportunity that comes your way. One of these opportunities may be a chance to become an expert car insurance broker and make more sales. As an expert, you will have many benefits including better pay and commission rates than regular brokers as well as agents.


Car Insurance Broker vs Car Insurance Agent: Who Makes More?

Car insurance brokers and car insurance agents are similar in the sense that they both receive a commission for selling car insurance. The difference between the two is that a car insurance brokers can sell policies from multiple agencies while an agent only sells one agency’s policy.

If you ask a client the difference between an insurance agent and an insurance broker, they probably wouldn’t know. But as an industry professional, we think it’s important for you to know the difference, especially if you sell car insurance. Here’s what we need you to know:

Car Insurance Broker

Car insurance brokers work for car insurance agencies or companies as a middleperson between the customer and the company. They can also be self-employed professionals who promote themselves as independent agents.

Car insurance brokers are allowed to work for more than one agency at a time but need permission from the state board first before they can sell policies for other companies without any supervision by that particular agency.

According to, the average salary of an insurance broker in the state of New York is $178,420 per year in 2021. The national average, however, ranges between $75,000 to $90,000 annually.

Car Insurance Agent

Car insurance agents are licensed to sell car insurance policies and can only work for a single company or agency. Insurance agents are usually paid on commission basis, which means that the more policies you sell, the higher your pay is going to be.

There are generally two types of car insurance agents; captive agents and independent agents.

Captive agents do not have the same capability to represent other companies and they need permission from their company for them to be able to work with another car insurance agency.  One perk of being a captive agent is having a base salary. Regardless of the sales and commissions they make, they always have their base salary to fall back onto.

Independent agents, on the other hand, are free to work for as many companies or agencies as they want. Independent agents also have more flexibility with their salary and can negotiate a higher commission than what’s initially offered by the company. One perk of being an independent agent is that they can sell policies from various companies. This enables them to sell policies that have a higher commission margin.

A car insurance agent can make about $100,000 a year. However, the national average for insurance agents is between $45,000 to $60,000 a year.

Car insurance brokers usually make more than car insurance agents because a broker generally has a larger pool of clients they can cater to than an insurance agent can.

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How Does a Car Insurance Broker Make Money?

If you are considering becoming a car insurance broker, you ought to know how you will be making money.  Most people are unaware that as a car insurance broker, you cannot bind coverage for an insurer even though you provide the best car insurance policies for individual or business needs.

You will be making money off commissions from selling any type of car insurance to individuals and businesses where commission ranges based on many things. Brokers sell all types of insurance and aren’t just limited to car insurance. This includes health care, homeowner’s policy, accident plan as well as life and annuity policies.

As an insurance broker, you will often earn a lump sum percentage against the first-year premium of a policy that you sell. After that, you will be earning smaller but ongoing annual residual income payments over the course of your client’s policy life.

In order to find your clients the best possible policies for their needs, it is important for you to understand what they are looking for. Especially in terms of costs and benefits when going through the process of buying insurance.


Tips For Car Insurance Brokers to Make More Money

If you are a car insurance broker who is looking to make more money, here are some well-researched tips for you:

Understand Your Clients

As you already know, being a broker is representing your clients to insurance providers. To be better at your job, get to know your clients better. For example, if you have a client who is in their early 20s, it is advisable to understand their budget for car insurance. Most of the younger clients have a tight budget and it wouldn’t be in either party’s best interest to provide them with an extremely comprehensive policy that costs thousands of dollars.

In such cases, ask your clients questions like what coverage is important for them and do your research accordingly.

Providing Exceptional Customer Service

It is mandatory for car insurance brokers to be good at customer service. But it’s not only because of their client-centric approach to work. Good customer service is vital for the growth of any business. According to Super Office, businesses that focus on customer service are 60% more profitable than those who don’t.

So, if you’re looking to exceed your sales budget, we recommend you start building on your insurance customer service strategies.


After working in the industry for a while, finding new customers can be quite challenging. Once your client base becomes stagnant, you need to find better ways to lure in customers, one of them is networking.

Through networking, you can meet clients who are in need for a change in insurance companies or younger clients who have no clue about getting insured. You can also meet the owners of car insurance companies. Networking can really help you boost your client base.

Partner With Car Companies

As an insurance broker, you can partner with companies that sell cars. It could be big names such as Ford or Toyota or even small car dealerships that sell second-hand cars. According to Reference, in a rough estimation, about 38,356 cars are sold daily in the U.S. So, this strategy is basically a foolproof plan.

Your partnership can work if both parties agree to exchange clients. For example, if the partner car company sells 15 cars a day, they refer you to them for car insurance. On the other hand, if you sell five policies per day to different clients, you refer to the said car company for their car repair needs or even if they want to buy or sell cars.

Reach out to businesses as well as individuals by sending them emails or leaving flyers at community centers near them.

Use Digital Marketing Tools

The best strategy to market yourself as a car insurance broker includes building a website and generating more leads. You can also write an article about insurance brokerage in various online and offline publications. This is a great way to get exposure since people who need this service will search for it themselves.

Modern innovative tips to make more sales include using social media, blogging about insurance topics or hosting an online seminar.

Insurance Companies To Work With

Even though your primary job is to work for your client’s interest, it’s also important to know which companies are reliable and will provide you a better margin for commissions. We have done the research for you, and here are some companies that you should work with as a car insurance broker for:

  • Amica Mutual
  • USAA
  • Auto-Owners Insurance Group
  • The Hartford
  • Renegade Insurance
  • MetLife
  • State Farm
  • All State
  • Nationwide


According to Statista, there are more than 400 thousand people working in the insurance sales industry. And this number is only projected to go up. As a car insurance broker, you need to have an extra edge that makes you stand out from the crowd. You can start by having excellent customer service or being knowledgeable about cars.

One of the only ways to retain and attract clients is to provide them a type of value that no one else can. If you are looking to be represented by a team of professionals to change your sales game, make sure you add your listing on our insurance directory.

In any case you have more questions about being a car insurance broker or just want to discuss your business plans, get in touch with us! If you wish to work with us, let us know in the comments below and our representatives will get back to you.

Frequently Asked Questions (FAQs)

Does A Car Insurance Broker Manage Claims?

No, as a car insurance broker, you are not required to manage claims. This is because you work independently and not with companies. For example, you sell a gap insurance policy to a client and their car was totaled in an accident. In this case, the client may approach you to help them with the claim process but you will be required to connect them to the insurance company.

Are Agents Preferred More Than Brokers?

Not really, but it also depends on the clients. Both insurance agents and brokers have their pros and cons when it comes to a client’s perspective. While a broker may help a client find cheaper yet comprehensive coverage, they won’t help in the claim process in an unfortunate event.

On the other hand, an insurance agent may sell a costlier policy but will be there for the client throughout the policy’s life. So, depending on an individual’s needs, an agent or broker is approached when buying a policy.

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