How much money do insurance agents make? That’s an easy question to ask, but one that’s a little harder to answer. A lot of factors influence the typical agent’s income, including, of course, your own hard work and commitment.
The short answer is that there are abundant opportunities in this field as long as you put in the time and effort and stay motivated. Here’s how some of the insurance agent salary numbers break down, starting with the basics first.
What Is an Insurance Agent?
That’s as good a place to start as any. An agent is an individual who sells insurance products to businesses or consumers.
Some agents are employed by one insurer and can only offer the brands and policies that their employer owns. That’s known as a captive agent.
Others are independent agents or brokers. These individuals or their agencies have established contractual relationships with multiple carriers. They have a full menu of products they can offer to their customers based on specific needs or budgetary concerns.
How Do Insurance Agents Make Money?
Depending on where you work, you might receive a salary, straight commissions on the policies you sell, or a mix of both income sources — all of which impact your overall insurance sales salary. If you receive commissions, you’ll also be paid every time your customers renew their coverage or buy additional policies from you.
You might also receive bonuses or incentives. For instance, your company might challenge you to hit a sales target and pay you bonuses when you succeed. There may be additional incentives for retaining policyholders or achieving other goals.
It’s important to discuss your income structure before joining a company or buying an insurance company franchise.
Factors Affecting Insurance Agent Salaries
Since most agents receive at least some of their income as a result of commissions on the products they sell, incomes can vary dramatically depending on individual sales volume.
A good agent will generate referrals and repeat business from a growing customer base. Therefore, experience in the profession is a big determining factor in income. If you’re new in the industry, you don’t have as many valuable contacts as you’ll have in time.
To put it another way, those who work longer and harder tend to earn the most.
Your location can also make a difference. If you’re in a market where you’re competing with numerous other agents, you’ll make less than if you have fewer competitors.
Your business location can be a strength or weakness, depending on the type of coverage you’re offering. For example, you’ll likely make a better income selling homeowners coverage if you’re based in a suburban or established residential community than if you’re in a college town full of happy renters.
A huge factor is the agency or company with which you’re affiliated. If you buy a franchise from an established company with a brand that your customers know and trust, you’ll inherit that beneficial reputation even if you’re a first-time business owner.
The right franchisor will also provide you with comprehensive training, help, and guidance in obtaining the state certification you’ll need, as well as ongoing support throughout your career.
So, What Is a Typical Insurance Agent Salary Today?
Leading employment service provider ZipRecruiter estimates that the average salary of insurance agents nationwide is around $65,000 per year in 2025. That’s about the midpoint of a range that starts at around $25,000 and exceeds $122,000 per year.
While that’s an average, your reality might vary dramatically depending on your years of experience, location, the type of policies you sell, and — most importantly — your own discipline, talent, and work ethic.
In general, life insurance agent income is higher than for most other types of coverage. That’s because policyholders might keep their policies in force for decades rather than a few short years, as would be the case with an auto policy or renters coverage.
In addition, insurers tend to grant agents higher upfront commissions for life policies than for other coverage types.
According to ZipRecruiter, life insurance agent salaries average about $78,500 annually.
Geographic Differences in Insurance Agent Salaries
Where do you live? Where do you want to live? As stated earlier, location matters. Insurance agent income can vary greatly from one state to another.
Here are the five top-earning states for agents with average salaries, and the five where you might make the least, according to ZipRecruiter.
Top States for Agent Earnings
- Washington – $65,915
- Washington D.C. – $65,765
- New York – $63,670
- Massachusetts – $63,559
- Alaska – $62,676
- Vermont – $61,879
Lowest Paying State for Agents
- Louisiana – $49,766
- Georgia – $49,141
- Arkansas – $48,124
- West Virginia – $45,055
- Florida – $43,491
Keep in mind that the cost of living where you do business can influence your success just as much as your annual income potential. Also, some locations within a state are better than others for agencies, regardless of that state’s average agent income. For instance, if you have less competition within your marketing area, you might do well even in a low-earnings state.
Tips for Increasing Your Insurance Agent Income
If you’re looking to get beyond “average salary,” one of the advantages of being an agent is that your income is in your own hands to a greater degree than with many careers. There are various ways of increasing your insurance broker salary through creativity, motivation, and hard work.
Upselling and cross-selling can enhance your revenue from your current customer base. An example of upselling is persuading an auto policy customer to upgrade from a liability-only policy to full coverage with comprehensive, collision, and roadside assistance benefits.
When cross-selling, you might get that same auto insurance customer to also purchase a life or homeowners plan.
Carrying a diverse product can also boost your income simply because you’ll have more to sell your customers. If specializing, focus on higher-demand products or those, like life policies, that generate higher agent commissions.
And finally, consider becoming the owner of a successful franchise. If you invest in an established franchisor like Freeway Insurance, you’ll have instant brand awareness and acceptance, a popular and diverse product line, and the training and support you’ll need to become as successful as other Freeway franchisees.
Future Outlook for Insurance Agent Salaries
According to the U.S. Bureau of Labor Statistics, the outlook is bright for policy agent incomes.
In an employment forecast covering the decade from 2023 to 2033, the BLS says that job growth in this field will be 6% higher than for all occupations during that same time period. Retirements will create a market for new agents, which should help maintain high salaries.
Learn More About Insurance Broker Salary — and Financially Rewarding Franchise Opportunities — at Freeway Insurance
We don’t just hire agents at Freeway Insurance. We let them run their own businesses as Freeway franchisees.
As a Freeway franchise owner, you’ll be your own boss, but immediately a part of a brand that’s known and trusted from coast to coast. You’ll find Freeway Insurance-ready markets throughout the United States. We already have some 550 franchise locations open, and we’re looking to continue adding locations owned by committed team members.
While you’re always the boss as the owner of a Freeway franchise, you’re never alone. In addition to an intensive training program before you open your doors for business, we’ll give you ongoing support when you need it.
Call our Freeway Insurance franchise representatives today at (877) 822-3024. Or give us your contact information online, and we’ll reach out to you to get the conversation started.
Find out what you can earn and the many other advantages of being a Freeway Insurance franchise owner.
