How Much Does an Insurance Agency Owner Make?

Being Captive and Independent Agent

Have you ever thought, how much does an insurance agency owner make? What does it mean to become a captive or an independent agent? When we look into captive and independent agents, there are not many differences. However, the differences lie in the extent of comfort and benefits each provides. Not every agent looks out for the same perks in their jobs. Like any other job, Insurance agency also has agents both having their pros and cons. It is crucial to differentiate between the two.

Insurance Agency Lexington: Being a Captive Agent  

Captive agents works for a single insurance carrier. They sell the products and services of only that particular carrier and try to enhance their business. Their only focus will be to acquire in-depth knowledge about the carrier’s products, policies, guidelines, and premium rate so that they could sell smoothly and profit their carrier.


For instance, if a captive agent works for a carrier, that agent will have extensive knowledge of this insurance agency’s products, policies, and services. He will further use that knowledge to sell these products and services and give the main priority to build business for this particular insurance agency solely.

A captive agent might be the right choice for agents just starting as it provides a consistent income source. It is a safe shot as agents can both learn and stabilize their roots at the same time.

Since the agents will gain a comprehensive understanding of the carrier’s products and services, they come out confident and knowledgeable while approaching customers. This leads to agents creating a positive impact on clients and building their trust.

However, being tied to a single insurance carrier alone can be a drawback in itself. A captive agent sells the products and services whether the clients are satisfied with them or not. This may result in losing clients when you have a limited offer, and the clients could grab a better deal somewhere else.

how much does an insurance agency owner make
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Insurance Agency Lexington: Being an Independent Agent  

Unlike captive agents, independent agents with multiple carriers at the same time. Also, they work as freelancers in various insurance agencies. In addition, they mix and match different insurance agencies’ products and provide the customers exactly what they are looking for.

Independent agents also enjoy time flexibility as they do not have a strict time pattern. They schedule their time according to their work.

Along with the perks come responsibilities and hard work as well. Being an independent agent requires constant effort and hustling, as it is like starting your own business. You have to be aware of how you will mold yourself in it and attain success.

Which one fits you right in Insurance Agency Lexington?

It all comes down to what you as an agent seek in your job. If you are starting in this field, chances are captive agent will be the right path for you, but if you are a hustler and know the area very well, and can be flexible, then an independent agent is the way to go! So, find an agent job whether it’s captive or independent that better suits your knowledge and expertise.

Also, you might be interested in knowing about how to start my own insurance agency.

Similarly, if you are concerned about your safety, contact an insurance brokerage today to obtain cyber insurance. Alternatively, you should call an insurance agent or insurance broker to find the right price.

Likewise, learn about the difference between captive and independent agents as stated by

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