How to Become an Auto Insurance Agent

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The auto insurance business has experienced steady growth. For those individuals who enjoy sales, this can be a good career choice. However, every state requires licensure of auto insurance agents, so you will need to take a state test. Some states also have pre-licensure requirements. Here’s how to become an auto insurance agent.

Check with your state for pre-licensing requirements. Some states require candidates taking their auto insurance license test go through a preparatory course. Contact your state’s office and ask about pre-licensing requirements. They should also have a list of accredited schools available.

Request a study guide. If your state doesn’t require pre-licensing education, request a study guide. This will give you guidance on the most important areas to study.

Schedule your state exam. All states require that auto insurance agents be licensed. Contact your state to schedule a test date. Some states offer testing several times each month, while others offer only one monthly time.

Decide where you will sell auto insurance. Once you receive your state license, you can decide where you will sell insurance. You can open your own agency, or decide to work for an established agent. Opening your own agency provides more income potential but greater risk. Working for an established agent typically provides commission opportunity and less risk.

Enroll in continuing education. The auto insurance industry changes frequently. Most states will require continuing education to keep your auto insurance agent license current.


Consider shadowing an auto insurance agent. If you’re unsure about making the leap into full time auto insurance sales, spend a week shadowing an agent. This will give you a better idea of what the job will entail.


Check about background requirements. Some states require all auto insurance agent applicants to undergo a criminal background check. Check with your state and fill out the appropriate paperwork and authorizations.