How do Car Insurance Agents make their money?

[AE86Lover]

I'm with State Farm and i'm in a dilemma. I was getting charged $640 / 6 months for FULL coverage for my car and the next time i was trying to renew, all of a sudden, they quoted me: $940.

It was complete b.s. I've never been in an accidnet but they said because since State Farm is increasing everybody's policy charge rate, they will have to do the same for me. So i'm thinking: Are they getting more money if they quote me more or wut? Or do the agents make money per account?

 

[AE86Lover]

bump!

 

[T9D]

I dont know but I'm thinking they get a small percentage of each account that is under their name.

 

[Semidevil]

maybe a majority of peolple in your age group/demographic are doing things that cause their rates to go up, so since you are in the same group, you have to take the premium hike too. sucks, I know....

 

[spaceman]

i think there is really a need for insurance insurance.

 

[gevorg]

The best thing to do is to shop around at other insurance companies (21st, progressive, etc), and if their prices are much lower than your new quote, then the agent is ripping you off.

 

[chambersc]

Originally posted by: tk109
I dont know but I'm thinking they get a small percentage of each account that is under their name.

you're right except it's a BIG percentage. I work with a guy who is an insurance agent and he says that his friend gets 95% of the premium.

 

[iamwiz82]

Originally posted by: chambersc

Originally posted by: tk109
I dont know but I'm thinking they get a small percentage of each account that is under their name.

you're right except it's a BIG percentage. I work with a guy who is an insurance agent and he says that his friend gets 95% of the premium.

Well he is a liar then. Honestly, are you guys that gullible? It's around 7% or so. Some companies give agents who are in their first year 50%, but that's a start up.

 

[chambersc]

Originally posted by: iamwiz82

Originally posted by: chambersc

Originally posted by: tk109
I dont know but I'm thinking they get a small percentage of each account that is under their name.

you're right except it's a BIG percentage. I work with a guy who is an insurance agent and he says that his friend gets 95% of the premium.

Well he is a liar then. Honestly, are you guys that gullible? It's around 7% or so. Some companies give agents who are in their first year 50%, but that's a start up.

I'd trust someone that is in the industry and has no impetus to lie to me over you, sorry.

 

[Viper GTS]

Originally posted by: chambersc

Originally posted by: iamwiz82

Originally posted by: chambersc

Originally posted by: tk109
I dont know but I'm thinking they get a small percentage of each account that is under their name.

you're right except it's a BIG percentage. I work with a guy who is an insurance agent and he says that his friend gets 95% of the premium.

Well he is a liar then. Honestly, are you guys that gullible? It's around 7% or so. Some companies give agents who are in their first year 50%, but that's a start up.

I'd trust someone that is in the industry and has no impetus to lie to me over you, sorry.

Quoted for stupidity.

His wife is in the insurance business.

BTW you would seriously have to be an idiot to believe a 95% figure.

Viper GTS

 

[Lola]

Originally posted by: chambersc

Originally posted by: iamwiz82

Originally posted by: chambersc

Originally posted by: tk109
I dont know but I'm thinking they get a small percentage of each account that is under their name.

you're right except it's a BIG percentage. I work with a guy who is an insurance agent and he says that his friend gets 95% of the premium.

Well he is a liar then. Honestly, are you guys that gullible? It's around 7% or so. Some companies give agents who are in their first year 50%, but that's a start up.

I'd trust someone that is in the industry and has no impetus to lie to me over you, sorry.

sorry pal, but I AM in the industry.... i am his wife, i am an agent, I work for my aunt who is an agent.... :roll:
That is a pretty awesome comission to be honest with you... please, PM me so i know what company to work for that the agents are getting 95% of the comission.

edit to say: that is why to be a successful agent, one my have many accounts, new business and renewals. Not only is it important to have high quality business, but rentetion and loss ratio are important as well.

 

[compuwiz1]

Wow, lots of misconceptions here.

I'm in the car business. Certain people come in and think that if a Camry has a sticker price of $20,000, we must have only paid $5000 for it, so they offer $5100. :shocked: