How to Become an Auto Insurance Agent

Last Updated on December 12, 2025

Becoming an auto insurance agent is more straightforward than most people expect. In nearly every state, you’ll need a license to sell auto insurance—and you may need to pass an exam, complete a background check, and (in some states) finish pre-licensing education.

If you’re interested in selling car insurance, here’s a clear, up-to-date walkthrough of what it takes, how long it usually takes, and what to do after you’re licensed.

Key Takeaways

• To sell auto insurance, you typically need a Property & Casualty (P&C) insurance producer license in your state.
• Most states require an exam and background check, and some states also require pre-licensing education before you can apply for a license.
• You don’t usually need a college degree—many agents start with a high school diploma and receive on-the-job training.
• After licensing, decide whether you want to be a captive agent (one company) or an independent agent (multiple insurers), since the day-to-day job can be very different.

How to Become an Auto Insurance Agent

To sell auto insurance, you generally need a Property & Casualty (P&C) insurance producer license. “Producer” is the modern term many states use for “agent.” Once you’re licensed, you can sell auto policies (and often home, renters, and other P&C products) depending on your appointments and state rules.

You don’t typically need a specific college degree to become an insurance agent. Many employers are happy with a high school diploma or equivalent and will train you on the job—especially if you’re motivated and comfortable working with customers.

Do I Need a License to Be an Auto Insurance Agent?

Yes—in most states you must be licensed to sell auto insurance. If you want to sell more than one “line” of insurance, you may need additional licenses. For example:

• P&C (Property & Casualty): auto, home, renters, commercial property, liability, and more (this is the core license for auto insurance)
• L&H (Life & Health): life insurance, health insurance, and related products

Many agents eventually get both licenses, but if your goal is strictly auto insurance, P&C is usually the starting point.

How to Become an Auto Insurance Agent in Your State

Licensing rules vary by state, but the process below is the most common path.

Step 1) Check Your State’s P&C Producer Licensing Requirements

Start by verifying your state’s exact rules (pre-licensing education, exam vendor, fees, fingerprinting, and application steps). A reliable place to begin is the National Insurance Producer Registry (NIPR) state requirements pages.

• Find your state rules here: NIPR State Requirements
• Apply for a license (many states use this workflow): NIPR – Apply for a License

Step 2) Complete Pre-Licensing Education (If Your State Requires It)

Some states require pre-licensing education for P&C, while others make it optional (but still recommended to help you pass the exam). If your state requires pre-licensing, you’ll typically complete a set number of hours and receive a completion certificate.

Step 3) Get Fingerprinted and Pass a Background Check (Common Requirement)

Many states require fingerprinting and a criminal background check as part of the licensing process. This is especially common for roles that handle customer payments and sensitive personal information.

Step 4) Pass the P&C Insurance Licensing Exam

Most states require an exam for each line of authority you want to sell. For auto insurance, that typically means the P&C exam. Your state will list how to schedule the exam, what to bring on test day, and how soon results are reported.

Step 5) Submit Your License Application

After you meet the requirements (education if required, exam, fingerprinting/background check), you’ll submit your license application. Many states handle licensing through NIPR or similar online portals, and approval times vary.

Timeline & cost: For many people, the process can take a few weeks from start to finish, depending on how quickly you complete coursework, schedule your exam, and finish fingerprinting. Total costs vary by state and can include course fees, exam fees, fingerprinting, and application fees.

Captive vs. Independent: Which Type of Auto Insurance Agent Should You Be?

Before you apply for jobs, it helps to understand the two most common career paths:

• Captive agent: sells for one company (for example, a single major brand). Training and support can be strong, but product choice is limited to that insurer.
• Independent agent: sells policies from multiple insurers (often through an agency). This can be more flexible for customers and sometimes more competitive on price, but you’ll need to learn multiple carriers and underwriting rules.

Some states and employers also use the term broker (especially for independent distribution). Titles vary, but the licensing foundation is often similar.

Education Requirements for Auto Insurance Agents

Most states do not require a college degree to become an insurance producer. Employers may prefer a bachelor’s degree for some roles, but it’s usually not required to get licensed.

Don’t have a bachelor’s degree? That’s okay. According to the Bureau of Labor Statistics, the typical entry-level education for an insurance sales agent is a high school diploma or equivalent.

The BLS also notes that insurance sales agents typically receive moderate-term on-the-job training—meaning a lot of your real learning happens once you start working with quotes, carriers, and customers.

How Much Do Auto Insurance Agents Make?

According to the U.S. Bureau of Labor Statistics, the median pay for insurance sales agents was $60,370 per year (May 2024).

Pay varies widely based on whether you’re salaried, commission-based, working for a captive brand, or working independently. Many agents earn commissions, so income can grow with experience, renewals, and a larger book of business. (Related: how commissions work for auto insurance agents.)

Other Auto Insurance Agent Certifications and Licenses

Once you’re licensed, you can level up your career in a few ways:

• Add another line of authority (like Life & Health) to expand what you can sell
• Pursue professional designations (often offered through industry groups) to build expertise and credibility
• Learn carrier-specific programs (telematics, preferred underwriting, specialty auto, commercial auto, etc.)

Many agencies also require or strongly prefer E&O (errors & omissions) insurance and ongoing training, especially if you’ll be advising customers on coverage choices.

Other Skills for Auto Insurance Agents

Auto insurance is part compliance, part customer service, and part sales. Skills that tend to matter most include:

• Communication: explaining coverages and answering questions clearly
• Organization: tracking follow-ups, renewals, and documentation
• Problem-solving: matching customers with the right coverage and price
• Consistency: building a pipeline and maintaining your book of business

FAQs on Becoming an Auto Insurance Agent

Final Word on Becoming an Auto Insurance Agent

To become an auto insurance agent, you generally need a P&C producer license in your state. Requirements vary, but the usual steps are: verify your state rules, complete any required education, pass the exam, complete fingerprinting/background checks, and submit your license application.

Once you’re licensed, look for opportunities with captive brands, independent agencies, or brokers—then build your skills, your book of business, and (over time) your earning potential.