{"id":2136,"date":"2025-05-16T23:58:00","date_gmt":"2025-05-16T23:58:00","guid":{"rendered":"https:\/\/www.freewayfranchise.com\/blog\/?p=2136"},"modified":"2025-05-19T21:29:35","modified_gmt":"2025-05-19T21:29:35","slug":"insurance-agent-salary-numbers-predictions-and-trends","status":"publish","type":"post","link":"https:\/\/www.freewayfranchise.com\/blog\/insurance-agent-salary-numbers-predictions-and-trends\/","title":{"rendered":"Insurance Agent Salary 2025: Numbers, Predictions, and Trends"},"content":{"rendered":"\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

What Is an Insurance Agent?<\/h2>\n\n\n\n

That’s as good a place to start as any. An agent is an individual who sells insurance products to businesses or consumers.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

How Do Insurance Agents Make Money?<\/h2>\n\n\n
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Depending on where you work, you might receive a salary, straight commissions on the policies you sell, or a mix of both income sources \u2014 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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

It’s important to discuss your income structure before joining a company or buying an insurance company franchise.<\/p>\n\n\n\n

Factors Affecting Insurance Agent Salaries<\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

To put it another way, those who work longer and harder tend to earn the most.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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<\/a>.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

So, What Is a Typical Insurance Agent Salary Today?<\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

While that’s an average, your reality might vary dramatically depending on your years of experience, location, the type of policies you sell, and \u2014 most importantly \u2014 your own discipline, talent, and work ethic.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

In addition, insurers tend to grant agents higher upfront commissions for life policies than for other coverage types.<\/p>\n\n\n\n

According to ZipRecruiter<\/a>, life insurance agent salaries average about $78,500 annually.<\/p>\n\n\n\n

Geographic Differences in Insurance Agent Salaries<\/h2>\n\n\n\n

Where do you live? Where do you want<\/em> to live? As stated earlier, location matters. Insurance agent income can vary greatly from one state to another.<\/p>\n\n\n\n

Here are the five top-earning states for agents with average salaries, and the five where you might make the least, according to ZipRecruiter.<\/p>\n\n\n\n

Top States for Agent Earnings<\/h3>\n\n\n\n