Thinking About Auto Insurance...

[Success]

Hi,

I currently sell Medicare Supplement Insurance (just started), and have always wanted to sell auto insurance. I was just looking for someone to give me some "rough numbers" on auto insurance...

How many policies does the "average" agent sell per week?

What is the average annual premium of an auto policy?

Are first year commissions higher, then they decline? OR are they just a level 12 or so percent for the life of the policy?

The average med supp annualized premium is around $1,620 per year... And they have "step commissions". Years 1-6 = a %, 7-10= a %, and 11 on there are no commissions.

I just started selling insurance not long ago, and I just want to see the possibilities of auto insurance.

Also, do auto clients take a lot of time and effort to "service"? That is another factor I would like to compare...

Thanks,

Craig

 

[JCK818]

Depends on the policy, I would say about 1,200-1,400. You are looking 15-10% first year and usually 10% thereafter

 

[Josh]

Also, do auto clients take a lot of time and effort to "service"? That is another factor I would like to compare...

Yes, they do. They'll also leave you for $10/month. Most folks looking to make big money can only do it in auto insurance if they devote their lives to it and don't mind waiting to start seeing their fortunes until about 10 years before they retire.

 

[0b1kanobee]

Yes, they do. They'll also leave you for $10/month. Most folks looking to make big money can only do it in auto insurance if they devote their lives to it and don't mind waiting to start seeing their fortunes until about 10 years before they retire.

Just out of curiosity, how would you know this?

 

[Clint]

Maybe he is a reformed auto agent?

 

[Soaringagent]

It just takes time like everything. If you want to try it out, you should.

 

[Insuranceman]

I'm thinking about getting my P & C licence now the health care reform bill is now passed.

 

[Josh]

Just out of curiosity, how would you know this?

For a year a managed an Allstate office that worked closely with an independent agency. I'd go to the agency principal meetings and spent a lot of time looking into it, I even looked at a 3 million dollar book of business in Utah, but in the end it just seemed like a LOT of service work for not much of a commission.
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Maybe he is a reformed auto agent?

More or less.

 

[debshelp44]

I sold auto policies - commissions around 10% and annualized premium is around $1200 average - and YES they will leave you for $10 bucks a month, and especially if they have a claim and their rates go up; clients you get by internet will shop around every 6 months. You have to sell a lot of P&C to make money, and you have to be willing to service them. The only real money in P&C is commercial policies - but they take a lot of time, too.