Selling Auto Insurance: Work-From-Home

Yes, you can sell auto insurance from home, but there are a few things you need to know and do first.

Firstly, you need to be licensed to sell insurance according to your state's laws. You will need to pass an exam to get your license, and most states require you to complete a pre-licensing course first. The exam will test your knowledge of insurance principles, regulations, and products. You will also need to complete a background check and apply for your license.

Once you have your license, you will need to be contracted with or employed by an insurance company that allows for independent or remote work. You can find these companies by identifying those that offer the type of insurance you want to sell and researching their business model, corporate culture, and reputation.

You will also need to set up a dedicated home office with a reliable internet connection, computer setup, telephone, and printer. This will enable seamless communication with clients and insurance companies.

Selling insurance from home can offer a flexible work-life balance and the potential for high earnings if you are motivated and skilled at selling. However, it may also feel isolating, especially if you are new to the insurance business.

The pros and cons of selling auto insurance from home

Selling auto insurance from home can be a rewarding career option, but it has its own set of advantages and drawbacks. Here are some of the pros and cons to consider:

Pros:

• Flexible work arrangements: Selling auto insurance from home offers the flexibility to set your own work schedule and work remotely. This is especially beneficial if you have other commitments or prefer non-traditional work hours.
• Higher earning potential: Working remotely can increase your productivity and earning potential. The median salary for at-home earners is roughly $8,600 higher than that of in-office workers. Additionally, insurance sales agents often earn income through commissions, which provides an opportunity for substantial earnings.
• Cost savings: Working from home can result in significant cost savings. You can save on transportation costs, meals eaten on the go, and childcare expenses. At-home workers also lower emissions by 29% in just one week compared to commuting.
• Work-life balance: Working remotely allows you to create a better work-life balance. You can save time on commuting and have more control over your work environment and schedule.

Cons:

• Unpredictable income: As an insurance sales agent, your earnings are dependent on the number of successful sales. This can make it difficult to predict your income and may cause financial stress, especially if you are just starting.
• Limited paid time off: Independent agents or brokers often don't have access to a full range of employee benefits, including paid time off. Taking time off can result in a loss of earnings and time away from building relationships with clients.
• High-pressure environment: Selling insurance can be stressful due to long work hours and constant pressure to meet quotas and targets. The competitive nature of the industry can contribute to a high-pressure work environment, leading to stress and burnout.
• Isolation: Working from home, especially if you are new to the insurance business, can feel isolating. You may miss out on the community and support of working in an office with colleagues.
• Equipment and maintenance: Insurance agents working from home are typically responsible for purchasing and maintaining their equipment. This can be challenging and time-consuming, especially if you are not technologically savvy.
• Space constraints: Dedicating a portion of your home to your business can be difficult, especially if you don't have extra space.

How to get licensed to sell auto insurance from home

To get licensed to sell auto insurance from home, you will need to meet certain requirements, which vary depending on the state in which you live and plan to operate. Here is a step-by-step guide on how to get licensed:

Step 1: Decide on the Type of Insurance Agent You Want to Become

You can choose to be a captive insurance agent or an independent insurance agent. A captive agent works exclusively with one company, typically a large national insurance provider, and can only sell that company's products. On the other hand, an independent agent works with multiple insurance companies and provides clients with policy quotes from different insurers.

Step 2: Decide on the Insurance Products You Will Sell

As auto insurance falls under property and casualty (P&C) insurance, you will need a P&C license. P&C insurance includes insurance for homes, cars, and businesses.

Step 3: Review Your State's Licensing Requirements

Each state has its own licensing requirements, which are maintained by the state's department of insurance. Check with your state department of insurance to determine the specific requirements, including the number of pre-licensing education hours needed, exam details, and registration fees.

Step 4: Complete Pre-Licensing Education

Most states require you to complete a specific number of hours of pre-licensing education before taking the licensing exam. This education can be obtained through approved online or in-person courses. The duration of these courses varies by state, ranging from 20 to 40 hours, plus additional hours for ethics.

Step 5: Pass the Insurance Licensing Exam

After completing your pre-licensing education, you will need to pass the state's insurance licensing exam. This exam will test your knowledge of insurance principles, regulations, and products specific to your chosen line of authority (in this case, property and casualty insurance).

Step 6: Complete a Background Check and Fingerprinting

Many states require fingerprinting and a background check as part of the licensing process. This typically includes a criminal history check and may be conducted by your state's Department of Insurance.

Step 7: Submit Your License Application

Once you have passed the exam and completed the background check, you can submit your license application to your state's insurance department. There may be application fees associated with this process.

Step 8: Wait for Application Review and License Issuance

After submitting your application, the state will review it and inform you of their decision. There may be a waiting period of about one to two weeks before you receive your license.

Step 9: Get Appointed with an Insurance Company

To sell insurance products, you must be appointed by an insurance company. Contact insurance companies and apply to become appointed, which means you are allowed to sell their products. You can choose to be a captive agent, selling only one company's products, or an independent agent, selling policies from multiple companies.

Step 10: Set Up Your Home Office

Selling insurance from home requires a dedicated workspace that meets professional standards. Ensure you have a reliable internet connection, a suitable computer setup, a telephone, and any other necessary equipment. Organize your workspace to improve efficiency and create a comfortable and productive environment.

By following these steps and meeting your state's specific requirements, you can obtain your license to sell auto insurance from home.

The equipment you need to sell auto insurance from home

To sell auto insurance from home, you will need to create a dedicated home office space with the right equipment. Here is a list of the essential equipment you will need:

• A reliable, high-speed internet connection with mobile hotspot capability as a backup option.
• A computer setup with multiple large monitors.
• A telephone, preferably with a good headset for clear and hands-free phone conversations.
• A printer.
• Ample cloud storage.
• Video conferencing software, such as Zoom or Google Meet.
• Any other apps or software required for your daily tasks, such as Asana or Slack.
• A locked file cabinet for sensitive information.
• Good lighting and an ergonomic chair and workstation to prevent potential health issues related to posture and eye strain.

In addition to the above, you may also want to invest in a laptop computer for when you're on the go, and a dedicated corner of your office space for recording video messages for clients.

How to set up a home office for selling auto insurance

Setting up a home office for selling auto insurance can be a great way to work from home and create a flexible work-life balance. Here are some steps to help you get started:

Choose a dedicated space:

Select a quiet and comfortable area in your home that can be dedicated to your office. This space should be free from distractions and outside noise, especially if you have children or loud pets.

Equip your office:

Ensure you have the necessary technology and equipment for your home office. This includes a reliable internet connection, a computer setup, a telephone, and a printer. You may also want to invest in additional monitors, a laptop for mobile work, an ergonomic chair and workstation, and good lighting.

Organize your workspace:

Create a tidy and functional office space to improve efficiency and prevent misplacing documents. Consider adding a file cabinet, preferably with a lock for sensitive information. Keep your digital files organized as well, using customer relationship management (CRM) software to manage client data and cut down on paperwork.

Choose the right software:

Utilize video conferencing software and apps such as Zoom or Google Meet for virtual meetings and sales calls. Also, consider using CRM software to generate and manage leads, communicate with clients, and provide real-time quotes.

Develop a marketing strategy:

Build an online presence through social media platforms such as Facebook, LinkedIn, and Twitter. Create separate business accounts and share relevant content, such as blog posts, insurance tips, and industry trends. Engage with your audience, respond to comments, and use targeted advertising options to reach a wider audience.

Get licensed:

To sell auto insurance from home, you will need to obtain the necessary licenses as mandated by your state. Check your state's requirements and complete any necessary pre-licensing education, exams, background checks, and applications.

Establish a routine:

Working from home can blur the lines between personal and professional life. Establish a set schedule and create boundaries to ensure you have uninterrupted work time. Let your family and friends know about your official office hours, and stick to your working hours as much as possible.

By following these steps, you can effectively set up a home office for selling auto insurance and enjoy the benefits of working from home.

Tips for generating leads when selling auto insurance from home

• Partner with auto-dealers and servicing centres: Collaborating with stakeholders in the automobile business is a great way to find auto insurance leads. Dealers and servicing centres are key influencers when it comes to insurance discussions with buyers. You can offer them a commission for suggesting your insurance services to customers.
• Partner with e-commerce marketplaces: B2B2C marketing is a strategy that involves partnering with online marketplaces to reach a wider audience. For example, Acko, an Indian InsurTech company, partnered with Amazon to sell car and bike insurance on its platform.
• Utilise third-party websites: Identify popular websites that can promote your business, such as cnet.com, bankrate.com, and simpledollar.com. Partner with these sites to showcase your services and reach potential customers.
• List yourself on insurance marketplaces: People often compare prices and policy benefits on insurance marketplaces before making a purchase. Listing yourself on these sites, such as BuyAutoInsurance, Nationwide, and Insurance.com, will help you find inbound leads.
• Participate in local auto shows: Attend auto shows, such as vintage, luxury, or motorbike shows, to network with potential customers and explore partnership opportunities with other companies.
• Communicate with driving schools: People enrolled in driving lessons are potential prospects. You can communicate your insurance offerings to trainers, who can then influence learners to purchase your policies.
• Use digital marketing strategies: Build a following on social media by posting relevant and free information about insurance. Invest in search engine optimisation (SEO) to improve your website's visibility and make it easier for potential customers to find you.
• Partner with influencers: Identify influencers in the auto insurance category, such as thought leaders and experts, to promote your insurance policies and generate leads.
• Advertise in gas stations: Gas stations are visited by almost every driver at least once a week. Advertise your services through flyers, posters, or business cards left at the cash counter.
• Advertise on car stickers: Advertise on car panels to catch the attention of other drivers. Use a catchy headline, highlight the benefits of your policy, and include your website address or phone number.
• Leverage word-of-mouth publicity: Positive reviews and recommendations from current clients can be powerful in attracting new leads. Encourage satisfied customers to share their experiences with others.
• Use email marketing: Send notifications and informational emails to potential customers to increase recognition and generate leads. Offer e-books or other valuable information in exchange for email addresses.
• Cold calling: While cold calling may be less effective than other methods, it can still be useful for gathering information about potential clients and updating your database.
• Partner with other companies: Collaborate with companies in related industries, such as car dealerships or real estate agents, to access commercial auto leads or home insurance leads.

Frequently asked questions