What Is the Average Insurance Agent Salary in 2025?
Many people these days hold multiple insurance policies. If you are looking for a new plan, wish to adjust the level of coverage, or find a better deal, working with an insurance agent can make the process faster and easier.
You may also be thinking about a career as an agent, in which case you are probably interested in the average salary numbers today.
Types of Insurance Agents
Insurance agents work with customers to help them to find the best insurance policies around. There are two types of these agents: independent insurance agents and captive insurance agents.
Captive insurance agents typically work for one agency, and they sell products provided by that company only. Independent insurance agents may work for multiple insurance agencies, and they offer clients access to a broader range of policies from different providers.
Typically, captive insurance agents and independent insurance agents earn money in different ways. The former usually have a base salary, topped up by bonuses and commission fees. Independent agents have to earn all their money through commission.
How Much Insurance Agents Make
Statistics from Indeed.com suggest that the average base salary in the US is around $72,616 per year.
The overall range of earnings is very diverse due to commissions and goes anywhere from $26,112 to $201,862 per year. In most cases, independent agents will have much higher commission rates compared to their peers that earn a base salary.
Salary Numbers by State
Location can have a major influence on insurance agent salaries. Salaries tend to be higher in some states than in others. In ascending order, the top ten states for insurance agent earnings are:
|
State |
Average salary |
% above national average |
|
New York |
$104,850 |
44.38 |
|
New Jersey |
$100,590 |
38.52 |
|
Massachusetts |
$94,830 |
30.59 |
|
California |
$92,670 |
27.61 |
|
Minnesota |
$90,490 |
24.61 |
|
North Dakota |
$88,220 |
21.48 |
|
Georgia |
$87,600 |
20.63 |
|
Rhode Island |
$85,210 |
17.34 |
|
Connecticut |
$85,090 |
17.17 |
|
Kansas |
$84,900 |
16.91 |
Factors Affecting the Salary Numbers
Several factors can affect the salaries, and these include:
Location
In some states, you’ll find the insurance agent salary over 40% higher than the national average. According to Indeed.com, the highest average salaries by city are found in New York, Las Vegas, and Atlanta.
Experience
Experienced insurance agents are likely to earn more than less experienced agents working in the same city or state. The average salary increases in line with experience, as demonstrated by these figures from Indeed.com:
- Up to 2 years of experience: $55,609
- 6-9 years: $66,479
- Over 10 years: $72,140
Commission
Commission rates and bonuses will vary according to the agency or the terms of an individual employment contract. Captive insurance agents, for example, have a base salary, but they can also earn commission and bonuses. Independent insurance agents earn commission only but tend to earn higher figures from their commissions.
How To Become an Insurance Agent
If you’re interested in pursuing a career as an insurance agent in the US, you will need to take the following steps:
Find out about licensing requirements in your state
State requirements vary, so you’ll need to make sure that you understand the licensing protocols in the state you live in.
Find a preparation course
Preparation courses are designed to help individuals to prepare for their licensing exam. Most states require candidates to complete this course before they take their exam. The course covers essential information, such as state laws and insurance regulations. Most programs take around one week.
Study
The next step is to study for your licensing exam. You will need to ensure that you have a grasp of the topics you covered in the preparation course. You can use other resources, such as online learning and mock exams to help you maximize your chances of passing the exam.
Sit your exam
This is the most important part of the journey so far. When you pass your exam, you will be granted a license, which means that you can start looking for clients and applying for jobs.
Decide where you want to work
Once you have your license, you can start thinking about where you want to work and looking for vacancies at insurance agencies. You will need to decide whether you want to work as a captive or an independent insurance agent.
Keep up with continued professional development and pass renewal exams
You will need to continue learning and sit exams to renew your license.
I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.
