Insurance Agent Salary in USA 2025
Commission structures, license types, and income potential
Average Insurance Agent Income
How Much Do Insurance Agents Earn in 2025?
Insurance agents sell and service insurance policies—life, health, property, casualty, and commercial lines. They work as captive agents (representing one company) or independent agents/brokers (representing multiple carriers). Income is primarily commission-based with significant variation based on experience, license type, and sales volume.
2025 insurance agent income shows wide variation: BLS reports median of $57,860 for all agents, but full-time producers typically earn $50,000–$90,000, with experienced life insurance agents making $80,000–$150,000+ and top commercial producers earning $150,000–$300,000+.
License type significantly impacts income potential: life/health agents generally earn more per policy than property/casualty (P&C) agents, while commercial insurance pays highest premiums. Independent agents typically have higher earning potential than captive agents. For context, see high-paying jobs without a degree.
Insurance Agent Income Snapshot
| Metric | Value |
|---|---|
| BLS Median (All Agents) | $57,860 |
| Average Range (Full-Time) | $50,000–$90,000 |
| Life Insurance Agent | $50,000–$150,000+ |
| P&C Agent | $45,000–$90,000 |
| Commercial Lines | $70,000–$150,000+ |
| Top Producers | $150,000–$300,000+ |
Use our salary calculator for income planning.
Insurance Agent Salary by License Type
| License Type | Income Range | Commission Structure |
|---|---|---|
| Life & Health | $50K–$150K+ | 50–110% first year, 2–10% renewal |
| Property & Casualty | $45K–$90K | 10–15% new, 2–5% renewal |
| Commercial Lines | $70K–$150K+ | 10–20% new, 5–10% renewal |
| Health Only | $40K–$80K | 15–25% first year |
| All Lines | $60K–$120K | Mixed, diversified |
Life Insurance Agent
Income: $50,000–$150,000+ (top producers $200K–$500K+)
Commission: 50–110% of first-year premium, 2–10% renewals
Highest first-year commissions but requires building book over time. Whole life pays more than term. Residual income from renewals builds over career.
Property & Casualty (P&C) Agent
Income: $45,000–$90,000
Commission: 10–15% new business, 2–5% renewals
Auto, home, renters insurance. Lower per-policy income but higher volume. Strong renewal income over time. More predictable than life insurance.
Commercial Insurance Agent
Income: $70,000–$150,000+ (top producers $200K–$300K+)
Commission: 10–20% new business, 5–10% renewals
Business insurance, workers' comp, commercial auto, liability. Larger premium policies = larger commissions. Relationship-based, longer sales cycles.
Captive vs. Independent Agent Salary
| Agent Type | Income Range | Characteristics |
|---|---|---|
| Captive Agent (Entry) | $35K–$60K | Salary + commission, training |
| Captive Agent (Established) | $50K–$90K | One company, support |
| Independent Agent | $60K–$150K+ | Multiple carriers, higher ceiling |
| Insurance Broker | $80K–$200K+ | Client-focused, agency owner |
Captive Agent
Income: $35,000–$90,000
Works exclusively for one company (State Farm, Allstate, Farmers). Often starts with base salary + commission while building book. Benefits provided. Lower ceiling but more support and training.
Independent Agent/Broker
Income: $60,000–$200,000+
Represents multiple insurance carriers. Higher commission rates (no company overhead). No salary—100% commission. Greater freedom and earning potential. Must generate own leads.
Insurance Agent Salary by Experience Level
| Experience Level | Income Range | Key Factors |
|---|---|---|
| Entry (Year 1) | $30K–$50K | Learning, building pipeline |
| Developing (2–3 yrs) | $45K–$75K | Building book, renewals start |
| Established (4–7 yrs) | $60K–$100K | Strong book, referrals |
| Senior (7+ yrs) | $80K–$150K+ | Large book, passive renewals |
| Top Producer | $150K–$300K+ | Elite sales, large accounts |
First Year Reality
Income: $30,000–$50,000
First year is challenging—building pipeline from scratch, learning products, high rejection. Many agents leave within 2 years. Captive positions with base salary help bridge the gap.
Established Agent (4–7 Years)
Income: $60,000–$100,000
Book generating significant renewals. Referrals from satisfied clients. Less cold prospecting needed. Income stabilizes and becomes more predictable.
Insurance Agent Salary by Location
| Location | Income Range | Key Factors |
|---|---|---|
| New York, NY | $70K–$130K | High premiums, competitive |
| California | $60K–$120K | Large market, regulations |
| Texas | $55K–$100K | Growing market, no state tax |
| Florida | $55K–$95K | P&C heavy, hurricanes |
| National Average | $50K–$90K | Baseline |
Location Impact
Higher cost-of-living areas have higher policy premiums = higher commissions. Commercial insurance hubs (NYC, Chicago, LA) offer highest earning potential. Florida has strong P&C market due to hurricane risk.
Insurance Commission Structures Explained
First-Year Commission
Life Insurance: 50–110% of first-year premium
P&C: 10–15% of annual premium
Commercial: 10–20% of annual premium
Renewal Commission
Life Insurance: 2–10% annually (decreasing over time)
P&C: 2–5% annually (as long as policy renews)
Commercial: 5–10% annually
Example: Life Insurance
$2,000 annual premium whole life policy × 80% first-year commission = $1,600
Year 2: $2,000 × 5% renewal = $100
Building a book of 200 policies creates $20,000+ annual passive renewal income.
Example: P&C
$1,500 auto/home bundle × 12% commission = $180
Renewal: $1,500 × 3% = $45/year
Higher volume needed—successful P&C agents have 500–1,000+ clients.
How to Increase Your Insurance Agent Income
Move to Commercial Lines
Commercial agents earn $70K–$150K+ versus personal lines $45K–$90K.
Go Independent
Independent agents earn $60K–$200K+ versus captive $50K–$90K. Higher commission rates, more carriers.
Add Life Insurance License
Life + P&C licenses enable cross-selling. Life commissions significantly higher per policy.
Specialize in High-Value Markets
Executive life insurance, high-net-worth P&C, and specialty commercial niches pay more.
Build Agency/Hire Producers
Agency owners earn override commissions on all agent production. Scale beyond personal selling.
See our salary negotiation guide for strategies.
Career Path and Related Roles
| Career Stage | Position | Income Range |
|---|---|---|
| Entry | Licensed Agent | $30K–$50K |
| Established | Full-Time Agent | $50K–$90K |
| Senior | Senior Producer | $80K–$150K |
| Leadership | Sales Manager | $90K–$150K |
| Ownership | Agency Owner | $100K–$500K+ |
Related Roles
Financial Advisor: $80,000–$200,000+
Mortgage Loan Officer: $60,000–$150,000+
Real Estate Broker: $60,000–$200,000+
Frequently Asked Questions
What is the average insurance agent salary in 2025?
BLS reports median of $57,860 for all insurance agents. Full-time agents typically earn $50,000–$90,000. Life insurance agents earn $50K–$150K+, commercial agents $70K–$150K+, and top producers reach $150K–$300K+.
Can insurance agents make $100K?
Yes. Established life insurance agents commonly reach $100K+. Commercial agents often exceed $100K. Top P&C agents with large books reach $100K. Agency owners and top producers earn $150K–$300K+. See jobs that pay $100K.
How long does it take to become successful as an insurance agent?
Typically 3–5 years to build sustainable income. Year 1 is hardest—many earn under $40K. By year 3–4, established agents have renewal income and referral network. 5+ years to reach $100K+ for most. Some exceptional producers reach six figures faster.
Which type of insurance agent makes the most money?
Commercial insurance agents typically earn highest ($70K–$150K+). Life insurance has highest per-policy commissions but requires more sales skill. Independent agents/brokers have highest ceiling due to better commission rates and multiple carrier access.
Is insurance sales a good career?
Good for self-motivated sales personalities. Unlimited income potential, no degree required, flexible schedule once established. Challenges: 100% commission (many fail year 1), requires prospecting and rejection tolerance, licensing requirements. Best for entrepreneurial individuals comfortable with variable income.