How Much Commission Do Insurance Agents Make?


Quick Answer

Insurance agents make a sizable commission on the first year of a policy and an ongoing commission as long as the policy is active. In many cases, a commission can range from 80 percent or more in the first year, making commission a substantial part of an agent's salary.

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Full Answer

Although insurance agents make a salary, it is often very small, based on the expectation of commission. When an insurance agent sells a policy, he receives a sum of money based on a percentage of the policy's premiums over the course of the year. For example, if an individual purchases a policy for a premium of $100, the agent may receive a commission of 90 percent the first year for a total of $1,333. Then, for subsequent years, the agent typically makes a smaller commission, which could be 5 percent, or $60, per year, as of 2015.

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