Wondering what the average insurance agent’s salary is in Texas?
If you’re considering an insurance career in The Lone Star State, you’re in luck. Reports show that Texas is one of the top ten states for insurance agent salaries.
Not only can you earn well as an insurance agent in Texas, but you’ll also profit from the state’s generous tax laws.
This won’t just drop your tax bill. It will also give you access to an expanding market. No state-level personal income tax is one of the reasons why millions are moving to Texas each year.
So how much exactly can you make as an insurance agent in sunny Texas?
Keep reading to find out how much money insurance agents make in Texas, what factors will influence your earnings, and how to maximize them.
Independent vs. Captive Agents
Before we get into salary specifics, let’s briefly clarify the differences between independent vs. captive insurance agents. Average earnings for captive vs. independent agents vary widely.
It’s essential to remember this when looking at salary and earnings estimates.
Captive agents, also known as dedicated agents, are producers that contract with only one insurance company. They only sell that carrier’s products.
Captive agents typically earn a modest, set insurance agent’s salary or retainer from the insurance company they contract with. They also earn commissions on their product sales. However, commission percentages are usually substantially lower than what independent agents make.
Captive insurance agent commissions typically range between 5-10% of the first year’s premiums. Independent agents usually earn 15% on these insurance types.
As the name suggests, independent agents work independently of carriers. They can pick and choose which carriers to contract with, and they can sell products from multiple carriers at once.
This allows independent agents to cherry-pick products to suit their client’s insurance needs. Instead of being locked into only offering one carrier’s products, they can shop around and combine products in a way that will give their clients the best coverage at the lowest price.
Carriers offer independent agents higher commissions because they don’t have to house them, generate leads, pay them a retainer, offer employee benefits, etc.
Independent agents operate as their own bosses. Instead of being an employee for a carrier, they’re free to create their own insurance agency.
Check out this blog post on becoming an independent insurance agent if you want to learn more.
Median Captive Insurance Agent’s Salary in Texas
According to salary estimates, the median annual salary for captive insurance agents in Texas is $55,457.
More experienced, high-performing agents can earn up to $75,662. New agents just starting out can expect salaries within the range of $54,767.
These salary estimates also reveal an interesting dynamic. As you can see, beginner earnings are very close to median earning levels.
While this looks like a good thing initially, it also means that increasing your earning level might be slow work. It could be many years until you reach a point where you’re generating enough commissions to inch up to a higher earning level.
Another thing to think about when comparing the salaries of captive vs. independent agents is renewals. Policy renewals allow agents to earn ongoing commissions. Over time, policy renewals can develop into a solid stream of passive income.
Although captive agents earn commission renewals, they don’t have ownership over them. If they move to another insurer, quit the industry, or go the independent agent route, their renewal payments will stop.
Average Annual Earnings for Independent Insurance Agents
Further salary estimates show that the national average annual earnings for independent insurance agents in Texas are between $89k per year before additional pay. After additional pay, agents can make anywhere up to $171k.
As you can see, this is substantially more than what captive agents earn on average.
Not only do independent insurance agents earn higher commissions on most products, but they also have the freedom to seek out the highest-paying insurers.
Furthermore, independent agents can tap into unique opportunities and client needs. Because they’re not bound to one carrier, they can seek out products that truly serve their target markets. Instead of competing for saturated markets, they can use their freedom to penetrate underserved markets desperate for better insurance solutions.
This can increase closing rates, boost sales numbers, build trust, and expand overall compensation.
Factors That Influence Earnings for Insurance Agents
Salary estimates can give you a decent idea of what you might expect to make as an insurance agent. But there are a lot of factors that can affect your earnings.
Experience and Sales Ability
One of the most significant factors determining your earning potential as an insurance agent is your experience and ability to close sales.
The better you get at selling, the more you will earn. Although some people have an innate knack for sales, the ability to nurture leads and close usually comes with practice.
Training also has a pivotal impact on how much you can earn as an agent. One of the attractive advantages of insurance sales is that it’s one of the few lucrative careers in that you don’t need a degree.
Most states require you to complete a basic pre-licensing training course to sit your insurance license exam.
However, this doesn’t mean that you should ignore more comprehensive training. Pre-licensing training covers the fundamental components of insurance policies and your state’s insurance regulations. But it does not teach you how to sell or market yourself to clients.
The proper training can help you refine your strategies, generate top-quality leads, and ramp up your earnings steadily over time.
Area and Size of Market
Another factor that can impact your earnings is the area you’re in and the size of your market. For instance, if you’re selling Medicare insurance in a university town, you probably won’t make as much as you would in an area where the demographic is predominately over 60.
Additionally, if you’re concentrating on face-to-face sales and targeting leads in your immediate area, you might do much better in a hub like Houston. However, this isn’t always the case.
For instance, if you’re the only agent in a smaller town, you could still have access to enough clients to earn a decent income, especially if you diversify into multiple insurance types.
Also, geographic restrictions are far less of a constraint than they used to be.
Nowadays, a lot of agents operate predominantly online. Younger target markets often prefer an entirely virtual process and don’t have the time or desire for face-to-face meetings.
The amount of time you dedicate to selling insurance can directly influence your earnings.
One of the benefits of becoming an independent insurance agent is that you can devote as much or as little time to your new career as you want.
For instance, if you want to ease into it, you can start selling insurance after hours and on weekends. A lot of leads actually prefer being able to communicate or have meetings outside of typical working hours, so you might find this approach to be quite effective.
Or, you can transition to selling insurance by going part-time with your current job. Or maybe you want to combine selling insurance with personal responsibilities such as being a stay-at-home parent?
Because you don’t have a boss hanging over your shoulder, you’re free to arrange your schedule as you please.
Finally, the type of insurance products you sell can also influence your earnings and commission levels.
For instance, agents that sell life insurance can enjoy higher-than-average earnings. Life insurance products typically pay out higher commissions than products like car insurance.
However, they can also be a lot tougher to close on. Car insurance is mandatory in most states, and closing a sale isn’t that tough if you can offer your client competitive options.
To sell final expense insurance and life coverage, you need to cross multiple psychological barriers. Most people don’t want to face the reality of their own mortality. But, if you have the right approach, you can become very successful with these higher-paying insurance types.
Tips to Maximize Your Earnings as an Insurance Agent
Now that you have a general idea of what insurance agents can make in a year, would you like to know how you can maximize your earnings?
Here are a few core tips for supercharging your earning power as an independent insurance agent.
Create a Comprehensive Marketing Strategy
To increase your earnings as an independent insurance agent, you must devote time to marketing. If you go the independent route, you won’t be earning an insurance agent’s salary. Instead, you will be entirely reliant on the commissions you earn from closing sales.
The upside is that you can build your business into a fully-fledged insurance agency. You also won’t have a cap on your earnings potential.
Before you devote money to a marketing campaign, sit down and get clear on who you’re targeting and what your unique selling points are.
Once you’ve gotten clear on your market, you can then save money and time by finely targeting your lead generation efforts. Instead of wasting money on ads and strategies that don’t convert, you can save your resources for the leads that are most likely to make it through your sales funnel.
If you’re new to insurance, this might sound daunting. But in reality, being able to spearhead your own marketing is actually a lucrative opportunity.
Why? Because it gives you a chance to generate high-quality leads that will practically convert on their own.
Bad leads aren’t just a waste of money; they’re also a waste of time. Every minute you spend trying to get a stale, low-quality lead to convert could be the time you spend with clients who are eager for what you have to offer.
Invest in Ongoing Training
As you can see, becoming a successful independent insurance agent isn’t just about sales. Yes, you must have an effective sales strategy, but you also need to know how to market and build your business.
Therefore, one of the best things you can do for your earning potential is to invest in the right training. Comprehensive, streamlined training won’t just teach you how to nurture leads and close sales. It will also answer all your insurance-related questions and give you all the tools you need to scale your new career into a fully-fledged business.
If you’ve been looking into insurance training programs, you might have noticed that most require:
- Contracts, minimum production numbers, or commission cuts
- Face-to-face training sessions that are expensive and inconvenient to travel to
Here at InsuranceSales101, we realized that most agents are forced to pay for training programs that nickel and dime them every step of the way. We decided to change that.
Our training programs are designed to teach agents powerful, effective frameworks and sales systems that allow you to become a true insurance advisor from the get-go. With us, you don’t have to claw your way up to an arbitrary production number before getting the training you need.
Instead, for an affordable, once-off cost, you can access a range of courses, including life insurance training, Medicare training, annuity insurance training, and more.
Put the Client First
Another essential tip is always to put your client’s needs first. If you focus on providing them with the best solutions for their needs at the best price, they’ll be more likely to convert.
They’ll also be likely to come back to you for their other insurance needs and refer you to family and friends.
Focus On Cross-Sells
Speaking of other insurance needs, focusing on cross-sells can be a powerful way to boost your earnings. Don’t just focus on the product type a client is looking for.
Instead, see if you can evaluate their overall insurance needs and propose ways they can optimize their coverage and premiums.
Ask for Referrals
Finally, don’t be shy to ask for referrals. If you have genuinely helped a client, they’ll often be more than happy to recommend you to someone they know who’s also in need of a good insurance advisor.
Referral leads are one of the best types of leads there are. They come pre-qualified and with pre-established trust.
Looking for the Best Insurance Agent Training?
Do you want to become a top-performing agent? All you need is dedication and the proper training to bring in a good insurance agent’s salary.
Here at InsuranceSales101, we’ve made it our business to provide new and seasoned insurance agents with comprehensive training. Training that equips you with everything you need to maximize your earnings and build your own insurance agency.
All of our training is on demand. We don’t require you to travel to in-person training events. We also don’t bill you at every step or restrict training access by production numbers.
Do you want to learn the best strategies, have all your questions answered, and access one-on-one coaching sessions and discounts on essential tools to run your business?
Browse our selection of agent training programs today.