Comments on: State Farm Insurance Agency.

By: Matthew S

Matthew S — Fri, 11 Dec 2009 08:14:09 +0000

State Farm, like most 'captive' companies or 'direct writers' (agents sell for one company exclusively) , has a very good training program for new agents. The agent training program (in most states) is 6 months or longer in duration. It involves classroom training and field (agency) training. You have to be successful in selling bank and life insurance products(along with home and auto) before you get assigned an agency. They will start most new agents out with a salary or draw and pay some of the office expenses as they start their business.
Your best chance of success is getting a a small customer base or 'book' to start with. If you start up without any customers it's called a 'scratch' agency. At State Farm they told us that 25% of scratch agencies succeed.
Other companies have similiar programs for new agents. I think you should have a lot of options in your area.

By: Joan

Joan — Fri, 11 Dec 2009 03:23:07 +0000

State Farm agents are all exclusive to State Farm. They are independent contractors, yet they have to be selected by State Farm. Go to statefarm.com if you are interested in learning more about how to become an agent

By: The Pope

The Pope — Fri, 11 Dec 2009 01:52:19 +0000

Just enough to pay the rent and get the insurance for the business to satisfy the landlord, and the e&o insurance to satisfy the carrier.

By: nanii1010

nanii1010 — Thu, 10 Dec 2009 19:27:33 +0000

By: Twiztnin

Twiztnin — Thu, 10 Dec 2009 15:42:51 +0000

go to State Farm's website.

http://www.statefarm.com/

fill out the "get a rate quote" section and put your new violations on there and see what they quote you.

By: santo_cracchiolo

santo_cracchiolo — Thu, 10 Dec 2009 02:34:28 +0000

While I am sure every state varies – the first answer is way off. In PA, I think you 60,000 in available funds – at all times. With SF – you do not buy the book of business – you are an independent contractor who services and sells. Talk to a local SF Agent – preferable a newer one – most are more than willing to meet with you and give you some insight.

By: The Pope

The Pope — Wed, 09 Dec 2009 00:31:42 +0000

Contacting the company is usually a good place to start.
Dbake pretty much nailed it, but here are the websites for the two companies.

Search under "sales".

As DBake, said, getting a license from your state's insurance department is also a good step.
I gave a listing to the National Association of Insurance Commissioners' website that lists links to the different states' insurance departments.

As a general rule:
Do your research, write up a business plan, and be realistic about the costs and pay.

By: The Pope

The Pope — Tue, 08 Dec 2009 17:23:32 +0000

Depends – how long will it take you to put $200,000 of premium on the books? That's 2,000 auto policies, or 1,000 homeowners policies. If you can't sell that much in six months, you're not likely to be able to keep the doors open.

It's ALL about sales. FWIW, not many people "stop in" to an insurance agency to buy insurance. Very, very few sales are walk in sales – it's NOT like retail clothing. You'll get LOTS of people asking for quotes – ie, LOTS of work, but very, very few sales. MOST people have to pound the pavement and make cold calls to make the sales happen – and the first few years, expect to put in 80 – 100 hour workweeks.

If you're planning on sitting behind a desk at the mall and waiting for the business to come to you . . . it ain't gonna happen. You'll get all the dui's and demolition contractors that 1. can't get coverage elsewhere 2. will give you bum checks and 3. it's all going to be the junk business that State Farm and Allstate won't write, anyway.

By: TYR

TYR — Tue, 08 Dec 2009 16:50:29 +0000

depends on how you open it.

sole propriotor if you merely sign a brokers agreement with them as yourself. Then you are merley in your own business as a broker for them

If you went into business with someone else in the office you would be a partnership ( depending on the agreement as to what type), if you incorporated and had that corporation owning the business where you had a broker relationship though that corporation, then you would be a corporation.

State Farm would have all those types as agencies within thier broker agents. What you left out was an employee, if the agency was actually owed by state farm itself you would merely be an employee