How much did my insurance agent make on a homeowners and auto renewal ($1000/American Fam)?
Answer:
Homeowners average about 15% of the premium, autos range from 8% to 12%. So if the total that you pay is $1,000, your agent probably makes $110 off of it.
Yes, not only do different companies pay agents different amounts, but they can pay a different amount on different lines of coverage. Example: the agent can make 8% on a car with a youthful operator, and 12% on a car with an operator 35-55. Or, 12% on uninsured motorist coverage, but only 5% on collision. It varies wildly from state to state, and company to company.
Not so much, they have to sell a lot
Agents commissions can verify depending on the agreed contract with the writing company. They are paid a percentage of the premium-it can vary as little as under 5% or as much as 20%. Agents definitely make a lot of money when most people dont require any service other than the preparation of the documentation for an application and mailing out renewal policies. Many dont take payments in the office, refer claims directly to the company and have you call the company for your own billing information. On the other hand, many agents are responsible for actually issuing policies and changing the policies on company web sites which requires expense and training.
15% is a typical commission.
Most property and casualty insurers do not pay a different commission on rebewal.
Companies do differ on commission rates.
Keep in mind a commission such as 15% is agent's revenue, not profit. The agent has expenses like salary, rent, utilities, etc. Also, an agent does not close every deal he works on, and invests time indeals for which he loses and gets zero commission.
Is he an agent or a broker? Is he an agency owner, or an employee? Typically, in our jurisdiction, home insurance pays 17% to 20 % to the agency, basic auto 5%,. From that, all expenses of the agency are paid, including salaries and commissions.
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