Who is an Independent Insurance Agent? Salary, Job

Given the multiple legitimate insurance alternatives accessible, purchasing insurance can be a difficult task. This isn’t like buying peanuts, dessert, or pristine clothe for a wedding ceremony.

You’re purchasing a long-term asset, a guarantee of protection that might make or destroy your financial future.

The question is- How do you know you’re making the best coverage decisions? Are you certain you’re getting the most bang for your buck?

Getting answers to these questions won’t be easy except with the help of independent insurance professional.

This is why it’s expedient you seek the service of an independent insurance agent before making any insurance decision.

Reading on, you will gain understanding of who independent insurance agents are, their job descriptions, salary and why you need them for your personal insurance requirements.

Who are independent insurance agents, and what do they do?

Independent insurance agents, often known as “producers,” sell a wide range of insurance and financial products. These products include property and casualty insurance, life insurance, health insurance, disability insurance, and long-term care insurance.

Also, an independent insurance agent represents a number of insurance companies, giving customers a variety of insurers, policies, and price options.

They sell policies that protect people and businesses from financial losses caused by things like car accidents, fires, theft, storms, and other natural disasters.

The Independent insurance brokers usually represent a number of insurance firms, or “carriers,” and market the products that best suit their clients’ needs.

Their knowledge enables them to advise their clients on the right insurance amounts and coverages for their specific needs.

However, they collaborate with insurance intermediaries, who gather quotations from a variety of insurers and forward them to the independent agent.

Further, working with an insurance intermediary service allows an independent agent to compare many quotations and provide their clients with the most cost-effective policy options.

What are Independent Insurance Agents Job Description?

Independent Insurance Agents responsibilities are enormous. Some independent agents work for themselves, offering insurance from a variety of companies.

Most time, they may be needed to complete company-specific training or apply for and be approved to sell the insurance of the company.

They also provide carrier access and administrative help to insurance membership networks or wholesalers.

Additionally, an independent agent shops for you through numerous insurance companies when you request a quote.

And when you meet the smart ones, they will show you side-by-side pricing and coverage alternatives so you can weigh the advantages and disadvantages of different insurers.

Independent agents may also have access to carriers that the common shopper does not have access to through the internet.

What Can I Expect to Earn as an Independent Insurance Agent?

The typical insurance agent’s total income (salary, commission, and bonuses) in 2013 was $48,210, according to the US Bureau of Labor Statistics, with the least 10% making $26,120 and the highest 10% receiving $116,940.

In 2020, how much will insurance agents earn? The average annual salary is $50,600. This, however, is dependent on a number of things, and you must first select which type of agent you want to be.

In the United States, there are two sorts of insurance agents: captive and independent. Captive agents work in single insurance companies, such as State Farm.

While Independent agents, as their name implies, are self-employed. There are distinctions in how these agents perform as well as their compensation.

How can I become an independent insurance agent?

To become an independent agent, you must study, complete state-mandated course hours, and pass one or more exams, depending on the types of insurance you want to sell.

With a license, you’ll get various forms of insurance and plans in various states. You might even get expertise by working for an established agency before launching their own.

Now breaking down the process:

1. Educate yourself

To work as an independent insurance agent, you need a GED or high school diploma. A bachelor’s degree in finance, marketing, or business administration could help you advance your career in the long run.

In order to apply for an independent insurance agent’s license, each state requires you to pass an exam.

You must take a study course that covers both the test material and non-test insurance issues before taking the exam.

However, some insurance businesses also provide on-the-job training with a certified insurance agent so that the applicant can gain experience in the field.

2. Meet all license requirements

Taking the licensure exam is only one step in the process of obtaining a license. People who want to work as an independent insurance agent should not have any criminal records.

Applicants with minor transgressions on their records, such as traffic violations and other non-violent charges, may be approved in some states.

It’s wise to check with your state’s licensing board to see what standards and expectations they have.

Another common requirement of state licensing boards is that you pass a background check.

Many also preserve a record of the fingerprints of applicants. Such rules are intended to avoid deception and fraud.

3. Obtain a permit

An applicant can apply for and acquire a license to offer insurance products after passing their insurance exam and submitting their details to the licensing board.

An applicant may be required to apply for a license to sell each specific type of insurance product on occasion, but this is an uncommon occurrence.

4. Look for a job

It may be challenging, but not impossible, to get clients as a new independent insurance agent. People like family, friends, and previous coworkers could be approached.

Agents develop a positive reputation by delivering excellent service, which increases their opportunities.

New independent insurance agents are occasionally offered on-the-job training and a job by an insurance firm or an established insurance broker.

5. Make an announcement

Both insurance firms and potential clients require new agents to sell themselves. Although online advertising is less expensive than local advertising, both must be covered in order to reach as many customers as possible.

In order to contact more potential consumers, new independent insurance brokers may want to ask for references and recommendations.

When you’re initially starting out, referrals from friends and family are crucial.

6. Continue to educate yourself

Independent insurance agents must stay up with changes in legislation and the industry in order to give the best service to their consumers.

Continuing education, such as taking courses and attending seminars and lectures, can help independent insurance brokers advance their careers.

As part of their insurance agent requirements, most states include a requirement for continuous education.

7. Get insurance

General liability, workers’ compensation, and errors and omissions insurance are all beneficial to independent insurance agents.

Insuring a startup firm protects it from financial risk. The policy on errors and omissions is especially significant.

This policy was established specifically for independent insurance agents and people in related professions to protect them from client claims originating from mistakes committed by the agent or their employees that leave the client uninsured.

What is the average Independent Insurance Agent job Salary?

Independent insurance brokers make an average of $77,140 a year, with an additional $25,000 in commission.

Because of the various agreements between each insurance company and each agent, as well as the service location, the number of clients, and the variety of policies supplied, independent insurance agents, earn a wide range of commissions.

How can you know if an agent is independent?

There are a few ways to find out:

Inquire directly with the insurance agent: “Do you work with a variety of insurers or simply? How many insurance companies do you represent?”
Look for anything on their website or in advertisements that describes them as a “independent agency.”
Check their licensure history with your state licensing body to learn how many insurance companies they represent.

What are the Benefits of Independent insurance agent Service?

Like I mention earlier, the service of an independent insurance agent is highly needed of you must make a good insurance decision. The advantages of working with independent insurance agents include:

Provides you with More Choices

Independent agents work with a number of different insurance providers to find you the greatest coverage at the most affordable price.

They can provide you with coverage from a variety of markets. With more options, you may be able to get lower rates, less limited policies, and better coverage.

Also, they can help you fill in any gaps in your coverage by recommending plans that work in conjunction with the coverage you already have.

You’ll Conserve funds

Independent insurance agents aren’t bound to a single provider, so they may shop around for the best rates for you.

Because an independent agency doesn’t have a preference for one brand over another, you’ll be able to evaluate a variety of pricing for the same policy.

This comparison can often save you a lot of money. Multi-policy discounts and the opportunity to purchase insurance plans that work together to give complete coverage can help you save even more money.

Be a Customer Advocate

Insurance agents who work for a single organization are frequently bound by strict guidelines. Instead of working for a single corporation, an independent insurance agent works for the customer.

When it comes to filing a claim, this is a significant benefit. There are complications in the Insurance claims process, and policyholders can easily become lost in the procedure and technical terms.

An independent insurance agent is a skilled professional who works on your behalf, increasing your chances of receiving a reasonable payout.

Provides you with Objective Advice

Insurance agents who work for a single company have a skewed perspective of the sector.

Independent agents, on the other hand, deal with dozens of companies that offer various sorts of insurance products.

Furthermore, because independent insurance agents work closely with customers, they can provide advise based on previous positive or negative client experiences.

Helps you Support a Local Business

Because independent insurance brokers aren’t beholden to anyone business, they can assist you in locating the greatest rates without favoring one over the other.

This independence also permits independent insurance brokers to locate plans that are more suited to their clients’ needs.

An independent agent is frequently a resident or a local company in your town, so they are familiar with the area and potential threats.

You should be able to keep your agent for the rest of your life. If you want to support a local business, an independent agent is a wonderful option.

Individualized service

An independent agent will expect to speak with you about your unique requirements and living environment.

As a result, they may be better able to locate reductions or better coverage that is more tailored to your needs.

An independent agent may be able to find you coverage more quickly than you could on your own if you have a DUI on your record, numerous houses in different states, a small business, or high-net-worth assets.

Are there any disadvantages?

Yes, of course.

Despite the fact that there are numerous advantages of Independent insurance agents, there are also some pitfalls that comes with opting for their service. Some of these pitfalls include:

Some insurers are not available:

Only companies that have been allowed to sell can be represented by independent agents.

Furthermore, because some insurance firms only sell through employees or captive agents, an independent agent won’t be able to provide you with options from all insurers.

You might not get coverage right away:

An independent agent may not be a good fit if you need coverage right away. For instance, an independent insurance agent can help you if you don’t have time to have an agent-customer interaction, identify your coverage needs, and wait for the agent to study your possibilities.

Conclusion

The importance of working with an independent insurance agent can never be overemphasized.

It’s necessary that before you take any insurance decision or opt for any insurance policy, the advice of a profession insurance agent is needed.

This is because insurance decision is a financial decision that can either make you or leave you broke for the rest of your life. So, be careful!

Who is an Independent Insurance Agent? Salary, Job Description, Skills