Sep 6, 2013

How Much Does Your Insurance Agent Make? You'll Be Surprised

Your insurance agent doesn't make nearly as much as you think.

Most of you probably picture insurance agents as rich, white-haired, country clubbers who golf every day and collect big checks.

To debunk this myth I put together some simple, real life examples to illustrate how much insurance agents actually make.

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Home & Auto Family of Four - 3 cars
Annual Premium - $4,800
Agency Revenue - $960 (20% of Annual Premium)
Agent Commission - $192 (20% of Agency Revenue)

Small Pet Store
Annual Premium - $1,800
Agency Revenue - $270 (15% of Annual Premium)
Agent Commission - $54 (20% of Agency Revenue)

Mid-Sized General Contractor - $15 million revenue
Annual Premium - $60,000
Agency Revenue - $9,000 (15% of Annual Premium)
Agent Commission - $1,800 (20% of Agency Revenue)

Conclusion
The next time you complain about how much you pay for insurance don't take it out on your agent. On average he or she is only making 3-4% of what you pay. The rest goes to the insurance agency to run their business and the insurance company so they can pay claims.

So take it easy on your agent at renewal time!