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What Is the Average Commission to Property Casualty Insurance Agents?

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Working as a property and casualty insurance producer can be a lucrative and rewarding career choice. Agents earn commissions from selling different insurance products, but the amount of the commission is determined by the company issuing the coverage and the specific type of policy. Identifying an average commission paid to property and casualty agents is nearly impossible because countless factors are involved in determining how much money an agent earns.

Up Front

Property and casualty insurance agents earn commissions at the time a sale takes place. They are directly compensated for their efforts involved in obtaining new clients, explaining the features and benefits of policies, and completing the administrative tasks necessary to sign up new customers. The commissions paid are a percentage of the customer’s annual premium.


Agents receive residual commissions, usually on the yearly anniversary of the date a policy was originally sold. Residual trail commissions are an extremely powerful asset to a property and casualty agent’s income. Over time, the passive earnings generated from residual commissions can result in an impressive and predictable income. Trail commissions are paid to agents to compensate them for the ongoing service that must inevitably be performed.

Lines of Insurance

Property and casualty insurance agents have the ability to earn commissions from the sale of several different types of policies. The lines of insurance in the property and casualty category include business liability, commercial automobile, personal automobile, flood, homeowner’s, workers compensation and boat. Agents may choose to focus entirely on selling one particular type of policy or remain generalized and serving consumers in a broad spectrum.


While the actual compensation totals earned by property and casualty agents is nearly impossible to determine, the size of the commissions for various insurance types is relatively easy to assess. Most insurance companies pay agents nearly identical commissions. Agents earn between 10 percent and 15 percent for auto insurance policies, 12 percent to 16 percent for homeowners policies, and 2 percent to 5 percent for boat policies.


Gregory Gambone is senior vice president of a small New Jersey insurance brokerage. His expertise is insurance and employee benefits. He has been writing since 1997. Gambone released his first book, "Financial Planning Basics," in 2007 and continues to work on his next industry publication. He earned a Bachelor of Science in psychology from Fairleigh Dickinson University.

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