What Is the Average Insurance Agent Salary in 2024?

Written By
G. Dautovic
July 07,2023

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 what a  typical insurance agent salary is. In this guide, we’ll provide all the information you need about how insurance agents make money. Let’s get started.

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. It’s important to understand the differences, as they can impact the average salary of an insurance agent.

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 Do Insurance Agents Make?

So what’s the average salary of an insurance agent in the US? Statistics from Indeed.com suggest that the base salary in the US is around $79,965 per year.

The overall range of earnings is very diverse due to commissions and goes anywhere from $17,000 to $188,000 per year. In most cases, independent agents will have much higher commission rates compared to their peers that earn a base salary.

Insurance Agent Salary 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:

  1. Minnesota
  2. Maine
  3. Alaska
  4. Kansas
  5. Vermont
  6. North Dakota
  7. Nebraska
  8. Utah
  9. Iowa
  10. South Dakota

The table below outlines the highest insurance agent salary by state:


Average salary ($)

% above national average
















North Dakota












South Dakota



Which Factors Affect the Average Salary of an Insurance Agent?

Several factors can affect the national average salary for an insurance agent in the US. These include:


As you can see from the table above, average salaries for insurance agents are higher in some states than others. The range of salaries for insurance agents runs from $17,000 to $180,000 per year. In some states, you’ll find the insurance agent salary over 35% higher than the national average. According to Indeed.com, the highest average salaries by city are found in New York, Las Vegas, and Atlanta.


Experienced insurance agents are likely to earn more than less experienced agents working in the same city or state. Average insurance agent 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 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 Do You 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. 


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.


Is an insurance agent a good job?


Yes, being an insurance agent is a good job. By providing this service, you help clients find the best insurance products to protect their homes, health, families, and assets. You can also earn quite a good salary if you do well as an agent.

Does an insurance agent earn a lot?


The average insurance agent salary in the US is currently around $79,000. Salaries depend on many factors, though:  base wage if you’re a captive agent, commission, location and level of expertise, and more.

Is it hard to make money as an insurance agent?


If you don’t have a base salary, it can be difficult to earn money, especially if you are new to the industry and lack experience. As you gain more experience, you may find it easier to achieve higher commissions. Some insurance agents can earn over $150,000 per year in commissions alone. 

About author

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.

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