Questions and Answers
If you want to be part of an industry that grows, on average, 15 percent per year, learning how to start a car insurance company can offer you a viable business opportunity. In most countries, it’s mandatory for drivers to renew their car insurance policies each year, and with more and more families owning more than 1 car, there’s an increasing demand for car insurance companies and brokers. The steps below explain what you need in terms of education, entrepreneurial skills, and other resources in order to start a car insurance company.
Obtain your property and casualty insurance license from your state.
Most states require you to complete a pre-licensing course with an accredited insurance education company, after which you must pass a state exam.
In most countries, the pre-requisite for enrolling in an insurance pre-licensing course is that you have a bachelor’s or compatible degree.
Construct a business plan for your car insurance company in which you outline how you’ll attract customers, which insurance carriers you’ll work with, and what your start-up costs are, as well as your projected income for the first 2 years.
Raise the investment capital you need to start a car insurance company.
If you’re starting a car insurance company as a second job, you might be able to finance your start up from your own savings or credit.
If you’re planning to run your car insurance company as a full-time job, you will need a loan from your bank or funds from private investors to cover your start-up costs and living expenses until you start generating revenue.
4. Register your company with your city to obtain a business license.
Choose a location for your car insurance company.
Even if you’re planning to drive to customers yourself to meet them, you’ll need a quiet place in your home where you can take calls, fill out your paperwork, and manage your business.
If you want an office where customers can come to you, make sure to choose office space that is accessible and visible.
Purchase liability and property insurance for your car insurance company to protect you from lawsuits and property losses.
Determine which insurance carriers you want to work with and which car insurance policies you want to sell. The more policies you have, the more choices you can offer clients.
Most big insurance carriers offer liability insurance, collision insurance, and comprehensive insurance, as well as multi-car insurance policies and umbrella policies.
Investigate whether you want to sell insurance for special niches, such as vintage car insurance, motorcycle insurance, and RV insurance.