What’s the average commission levels I could expect from selling Car Insurance and Home Owners respectively?
Friday, July 24th, 2009 at
1:03 pm
tragic_exile asked:
I’m already a licensed Life and Health Agent. I’m researching opening a P&C office. I know P&C commission amounts are lower than what I’ve had experience with but what is the industry average for an Independent Broker?
I’m already a licensed Life and Health Agent. I’m researching opening a P&C office. I know P&C commission amounts are lower than what I’ve had experience with but what is the industry average for an Independent Broker?
Tagged with: Commission Amounts • Selling Car • Selling Insurance
Filed under: Homeowners Insurance
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Depends on the contract, but industry average is between 8% – 20% first year commision. Renewals depend on the contract, but are usually in the same ballpark.
For calculation purposes, I usually use 15%.
For a more indepth article:
If you use your own contracts, it’s about 10% for car, and 15% for home.
The good news is, commissions are the same for renewals, and competition for the business isn’t as heavy. The advantage over life & health, is that after a few years, you can rely on your renewals and walkins more and more, and don’t have to keep knocking yourself out with sales.
It depends on the company & state. Our book is 10-17% on auto & 15%-25% on homeowners & umbrella. Yes, we still have homeowner companies that pay 25% homeowners commission. Most of our companies pay the same commission on new business & renewals. Some pay lower for renewals when they have a service center.