How much do insurance brokers make?

An insurance broker in the United States can make anywhere from $51,000 to $98,332 per year. This amount can be paid in two different ways. An insurance broker can be paid by fee or by insurance commissions.

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Chris Tepedino is a feature writer that has written extensively about home, life, and car insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and C...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent Laura Walker

UPDATED: Apr 4, 2022

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The Rundown

  • An insurance broker can be paid in two different ways — by fee or by commissions
  • The state an insurance broker practices in contributes to how much they are paid each year
  • An insurance broker and an insurance agent have very similar roles, but an insurance agent typically receives a higher salary

Whether you are exploring career options as an insurance broker or planning on working with one, it’s a good idea to learn more about this career and the capabilities associated with it. If you are on the hunt for a life insurance policy, hiring an insurance broker could be a great decision, and it can be the key to finding the right policy for you.

In this article, you will learn more about the role of an insurance broker, including how much they make, their typical education level, and how they sustain a living in their designated career.

How much do insurance brokers make per year?

According to Glassdoor, the estimated salary of an insurance broker in the United States is $98,624 per year, with an average salary of $66,841 per year. However, this amount can vary according to several factors, such as the years of experience, education, additional payments, and most importantly, the location an insurance broker works in.

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Insurance Broker Salary by Location

The salary of an insurance broker differs in each state. States including New York ($64,720 a year), Massachusetts ($64,108 a year), and Washington ($63,661 a year) have the highest reported salary for insurance brokers. Other states, such as North Carolina ($47,466 a year), Florida ($49,848 a year), and Missouri ($51,008 a year), have ranked among the states with the lowest salary for insurance brokers.

StateAverage Salary
New Hampshire$62,393
New Jersey$56,332
New Mexico$52,167
New York$64,720
North Carolina$47,466
North Dakota$58,152
Rhode Island$58,911
South Carolina$55,701
South Dakota$56,454
West Virginia$56,263
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While location can impact what an insurance broker is paid, it isn’t the only factor associated with an insurance broker’s salary.

Insurance Broker Education

A career as an insurance broker does not require an extensive education background. In fact, the average insurance broker has at least a high school diploma. However, the majority of high earners in the industry do have some college experience. According to Zippia, 64 percent of insurance brokers have a bachelor’s degree.

Education requirements can be flexible for an insurance broker, but all insurance brokers are required to have the proper licensing. They must obtain a mandatory state license to sell insurance policies. In some instances, an insurance broker certification may also be needed.

What does an insurance broker do?

An insurance broker’s role is to bridge the gap between the consumer and their preferred insurance company. Since they are not affiliated with an insurance provider, insurance brokers remain loyal to the consumer’s needs and what is in their best interest.

The role of an insurance broker is client-facing and requires excellent relationship-building skills. Good listening is another skill set essential for success in this role. Since consumers rely on an insurance broker’s expertise, they need to be able to identify client objectives and match them with an insurance policy that can satisfy these unique needs.

For example, if you are searching for a life insurance policy and want to make sure you have a firm grasp of what it covers, an insurance broker can help. Although the law doesn’t require you to hire an insurance broker, the advantages of developing a personal relationship with someone experienced in the industry and well-versed in your specific needs could enhance your life insurance shopping experience.

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What is the difference between an insurance broker and an insurance agent?

While the goal of both an insurance broker and an insurance agent is to provide insurance consumers with the best life insurance policies for their lifestyle, one of the most significant differences between the two is whom they represent. An insurance agent may represent more than one life insurance company. On the other hand, an insurance broker represents you — the consumer.

Another major difference between life insurance brokers and insurance agents is their authority. Since agents work on behalf of other insurance companies, they can set a policy or provide bind coverage. Binding an insurance policy refers to a temporary agreement that can confirm insurance for the policyholder before the policy even becomes official. This can make it easier for consumers to provide proof of insurance without waiting for it to fully take effect.

Who makes the most money?

When comparing the role of an insurance broker and an insurance agent, it’s essential to consider their salaries. The average salary of a life insurance agent is $79,730 a year, with the top 10% reportedly earning up to $116,940 per year.

Based on the data we received about the salary of these two professions, it looks like insurance agents make considerably more money than insurance brokers. However, the state and their experience can result in a salary lower or higher than the national average.

An Overview of How Much Money Insurance Brokers Make

The career of an insurance broker is filled with promise and opportunity. Since there is no definitive salary as most insurance brokers are paid by commission, the amount of work put into the job determines just how high their salary can get. One of the highest reported salaries of an insurance broker in the United States is $98,332.

Insurance brokers aren’t required to have a college degree, but a bachelor’s degree can increase earnings. More than half of the top earning insurance brokers have a college degree. Lastly, the specialization of an insurance broker can help narrow things down. Money comes and goes, but an experienced life insurance broker with the right expertise can result in a priceless, seamless insurance shopping experience.

Now that you are aware of how much an insurance broker makes, are you ready to see what they can do? Contact an insurance broker and start your search for the perfect life insurance policy today.

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