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Does a car insurance agent's commission depend on how long you keep the policy?
My car insurance agent is trying to get me to sign up for a 12-month policy. Do they make commission that way?
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Yes, some insurance agents make money based on the policy and how long you keep it, but not all.
How
car insurance
agents make commission will depend on the company. Some insurance agents earn a salary and make a commission based on the total number of sales they make. Some agents may work solely on commission while other don’t.For agents who work solely on commission, the length of a policy would matter. A premium for a 12-month policy will always be higher than a six-month policy. If an agent would make more commission a twelve-month policy, they’ll attempt to sell those more often. It’s a simple matter of dollars and cents and in actuality, you stand to save more money by purchasing a 12-month policy versus a six-month policy.
Additionally, some companies measure commission by retention. In this case, how long you stay with a company would impact an agent’s commission. If you agree to a twelve-month policy and cancel mid-way through, the agent’s commission would be impacted. While this is less common, it ensures agents are writing quality policies that insureds want to keep.
If you’ve had bad experience with insurance agents or you feel like they’re not acting in your best interest, give insurance broker
Jerry
a try. With a low-pressure approach and access to quotes from over 45 insurers, Jerry gives you the insurance you need without any strongarm tactics.”View full answer
- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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