If you have the personality and the desire to sell auto insurance, it makes sense to open your own auto insurance agency. Starting an auto insurance agency isn't something that happens over night, but with proper planning and focused effort, you can start and run a successful auto insurance agency.
- Step 1
Obtain a license in the state in which you intend to operate. Before you can transact business on behalf of an auto insurance company you must become a licensed insurance agent. Contact your state's Department of Insurance to find the requirements for becoming a licensed insurance agent in your state.
- Step 2
Get hands on experience prior to opening an auto insurance agency. While a licensed insurance agent may be legally able to open an auto insurance agency, there are a few practical reasons why it's best to get hands on experience prior to taking on the responsibility of an agency. Once you have some experience in dealing with customers, selling insurance and handling the unexpected auto insurance claim, you are more prepared to open your own agency.
- Step 3
Purchase the necessary insurance to own an insurance agency. In addition to insuring your office location, equipment and furniture, you must obtain errors and omissions insurance in the event you are sued by one of your clients for an error or omission committed in the process of securing an auto insurance policy.
- Step 4
Solicit insurance companies for which you will have the authority to secure coverage. In order to have a successful auto insurance agency you need several insurance companies for which you will have "the pen." In other words, you'll have the authority to sell auto insurance policies underwritten by the insurance company. The more insurance companies you have the better. If your client's driving record does not fit within one company's underwriting guidelines, you can offer an alternative quote.
- Step 5
Develop a clientèle. The most profitable insurance agencies have a large customer base. Spend time developing a following even before you open your auto insurance agency. You want to have a base of customers so you can hit the ground running as soon as your agency is opened to the public.