Neighborhood auto insurance agency with a storefront

Insurance companies pay commission on policies you sell and renew. Clients are local drivers, new car buyers, young drivers and families who prefer talking to someone in person.

Commission on premiums from each carrier, plus renewals. Adding staff and related policies (home, renters, life) lets the same client base bring in more per household.

• Sales and relationship building
• Managing a small team
• Organized with client records and renewals
• Local networking

• State producer licenses are required, and many states also license the agency itself; check with your state insurance department
• Errors and omissions insurance and general liability insurance for the premises
• Handling client premium payments may bring trust account rules, so check your state's requirements
• Carrier programs can have production targets, fees or contract terms; read them carefully before signing
• Rent and payroll arrive before commissions do, so keep a cash cushion
• Staff who sell insurance need their own licenses, and workers' compensation insurance once you hire

Startup costs are typically around $10,000 to $40,000, depending on your rent and deposit, office setup, licensing fees and insurance. This is an estimate, so check local rents and your state's fees before you commit.

Monthly revenue is typically around $3,000 to $15,000, depending on how many policies you sell and renew, which carriers you work with and your commission terms. This is an estimate, and rent and payroll come due before commissions build.

Check state producer license rules and whether your state also licenses the agency, with your state insurance department. Also check errors and omissions and premises insurance, trust account rules for client premiums, and licensing for any staff who sell.