How to Become a Automobile Insurance Agent
In all states a license is required to become an automobile insurance agent. You can contact the insurance regulatory body for particular state for information on obtaining your agent's license. Some insurance companies provide a training period where they will help you prepare for the test. You can become a broker who places insurance with several different companies, or a captured agent who places insurance with only one company. Continuing education classes will also be required to keep your license current. You can be licensed in different lines of insurance, such as auto, property, casualty or life.
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Things You'll Need
- Contact information for your state insurance regulator
- Transportation
- Continuing education credits
- Ability to use a computer
Instructions
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Action Steps
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Contact your state office to determine the requirements such as the number of classrom hours required, testing sites and dates that testing is available. Carinsurance.com has a list of contact information for each state. Some states require in-class study of around 20 hours; others allow at-home study.
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Schedule your classes and attend regularly. If you have not worked in the insurance industry, it will be more difficult to pass the insurance exam.
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Take the exam. If you pass the licensing exam, the test administrator will notify the state of your status and your license will be mailed to you.
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Tips & Warnings
Working for an established large insurance company is beneficial to new agents. These companies already have an established reputation and may offer benefits and/or bonuses in addition to commission. You will have a reduced risk exposure when your clients are placed with a larger company. Well-established companies may also carry the cost of continuing education (CE) for their agents. CE requirements will vary from state to state. According to resourceslawinfo.com, Virginia requires 16 hours or continuing education credits if you have one type of license, and 24 hours if you hold multiple licenses. Ohio requires 20 hours, which can be taken in the classroom or online. Kentucky allows the agent to take half of his required 24 hours online. Wisconsin requires 24 credit hours be completed every two years. Refer to your state for specific requirements.
You cannot sell any type of insurance without a state license, or when your license has expired because of a lack of continuing education credits. Individuals must be at least 18 and have a clean criminal record and a solid financial record to apply. Bankruptcy or a poor credit history may bar you from licensing.
