Wanna sell car insurance? These are the things you should know and do. Selling auto insurance can be a rewarding and lucrative career, and it has few formal barriers to entry. This can make it attractive to those with an entrepreneurial spirit and a persistent nature. You can get your license before or after you get a job with a company, but you can’t start selling until you are licensed. If you find a job before getting your license, getting your start in insurance sales will be simple. If you haven’t already secured employment, the process takes a little more initiative, but success is still very much within reach.
Check your state’s requirements.
While most states don’t impose rigorous qualifications to obtain a license to sell insurance, there are always prerequisites of some type. Since licensing is done on a state by state basis and not a national basis, each state gets to decide which licensing requirements apply within their borders. Nonetheless, there are some typical requirements you should prepare to meet if you want to begin a career selling insurance. You should consider the below:
Be over the age of 18.
Have a high school diploma or GED.
Have completed a pre-licensing course recognized by your state.
Consider brokerage versus agency.
Insurance salespeople fall into two categories, brokers and agents. While a broker can sell insurance from any insurer, an agent works for one insurer and only sells their products. In most states, brokers and agents will take different classes and sit for different exams.
Brokers typically hire other salespeople to work for their brokerage and start their own businesses. In some states, brokers will need to have a certain amount of experience before they can sit for the broker’s exam, although this isn’t a universal rule. In all cases, an entrepreneurial spirit is key to finding success as a broker.
Agents (specifically “captive agents”) work for one insurer exclusively. There are never experience requirements for becoming an insurance agent, and financial barriers to entry are low, so agency is often the point of entry for those looking to get into insurance sales.
Take a pre-licensing course. Once you’ve decided if you’d like to sell it through a brokerage of your own or as a captive agent, you’ll need to take an appropriate pre-licensing course in order to get licensed. The type of subject matter (or line) or insurance your course should cover is Property and Casualty, which includes auto insurance. Although the specific number of instructional hours each state mandates varies, it’s usually somewhere between thirty and sixty.
Make sure your state accepts a particular course by checking with the state insurance commissioner.
Most state insurance commissioners’ websites will list acceptable courses and schools, but if yours doesn’t, just contact them to make sure before you register with one.
The cost for a course is going to vary considerably based on format and setting, but you should expect to spend at least $100 on a course.
The content and administrator of the actual exam you take will be dependent upon the state you’re applying to sell insurance in. Your pre-licensing course will prepare you for the test you’ll take.
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