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How to Start a Auto Insurance Agency in Texas

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Staring an auto insurance agency in Texas requires both testing and applying for an insurance license. It also requires continuing education credits after licensing is granted. Texas auto insurance agents need a criminal background check before receiving an agent’s license. The Texas Department of Insurance is the insurance licensing branch of the Texas state government. It is responsible for licenses, renewals, appointments and continuing education for all insurance agents in Texas.

Individual Agent License

Visit the Texas Department of Insurance website to download an application for an insurance license for the State of Texas. Choose from resident application, nonresident application, license renewal or address change forms.

Choose the appropriate continuing education forms to submit with your application. These are also found on the website under continuing education forms. For auto insurance sales you need the General Lines-Property and Casualty License.

Sign up to take the appropriate exam with Prometric, the insurance exam provider for the state of Texas. Pay the exam fee of $70 to Prometric.

Submit the $50 license fee to the Texas Department of Insurance with your completed application materials.

Use the FASTPass form to schedule an appointment for fingerprinting. Fingerprinting is required of all insurance agent applicants for a background check.

Incorporating an Agency

File an application for incorporating an agency in Texas by submitting a cover letter with the application that summarizes your proposed corporation and what type of insurance you plan to offer in Texas.

Submit a completed a completed primary application checklist, and include all areas of insurance you are licensed to transact and all those you are currently transacting.

Enclose a check for the filing fee to the Texas Department of Insurance in the amount of $1,500, which is the filing fee for incorporating an insurance agency in Texas.

Provide all other documentation required by the department of insurance for incorporation. These include company insurance, minimum capital requirements, minimum deposit requirements, name approval and plan of operation.


Patti Richards has been a writer since 1990. She writes children’s books and articles on parenting, women's health and education. Her credits include San Diego Family Magazine, Metro Parent Magazine, Boys' Quest Magazine and many others. Richards has a Bachelor of Science in English/secondary education from Welch College.