How Do Independent Insurance Agents Paid?
A common question we hear is, how do insurance agents get paid? There are 3 main ways that insurance agents are paid.
First, most agents make their money from commissions. They take a certain percentage of the premiums you pay to your carrier. This is the share they take for the services they provide insurance companies. This is the main source of income for most independent agents.
Second, insurance agents can make money through contingency. This is based on how much business the agent writes with a carrier versus how much money was paid out in losses. This depends on the type of contract the agent has with their insurance providers.
Third, they can charge a fee for their services. Although this not too common, there are some particular situations in which your agent may charge you with additional fees. If you are getting charged an additional fee, ask your agent why so you can determine if it is worth switching agents.
We hope this explains how your agent is compensated!
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