Salary is an important factor in an insurance agency owner’s overall financial well-being and career success. An insurance agency owner may be an independent contractor or work for a larger agency, but they play a key role in the sale and management of policies, which makes salary important.

As of 2023, the average annual salary for an Insurance Agency Owner in the United States is $96,571, according to ZipRecruiter which equates to roughly $46.43 per hour, $1,857 per week, or $8,047 per month.
Salaries can range from $29,500 to $156,000, with the majority falling between $62,000 and $125,000. I’ve operated my independent insurance business for years and can say these figures are very accurate. Most agents, like myself, fall within these ranges.
By understanding the factors that affect your salary, you can make informed choices about your career and plan financially. In this article, we will discuss factors that affect the salaries of insurance agency owners, the average salary, and salary trends and projections. Let’s get started!
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The Top 10 Cities With The Highest Salaries For Insurance Agency Owner Jobs
According to recent data, the top 10 cities with the highest salaries for Insurance Agency Owner jobs in the United States are Green River, WY, Santa Clara and San Francisco, CA, Washington, DC, Fremont and Los Angeles, CA, Jersey City, NJ, Marysville, WA, San Jose, CA, and Germantown, MD.
These cities offer annual salaries ranging from $104,000 to $121,000, with many additional benefits such as access to scenic natural landscapes, proximity to national landmarks and world-renowned cultural offerings, as well as mild climates and diverse cultural offerings. If you are considering a career as an Insurance Agency Owner, these top-paying cities may be worth exploring for potential job opportunities.
City | Annual Salary | Monthly Pay | Weekly Pay |
---|---|---|---|
Green River, WY | $121,000 | $10,000 | $2,300 |
Santa Clara, CA | $113,000 | $9,000 | $2,100 |
San Francisco, CA | $110,000 | $9,000 | $2,100 |
Washington, DC | $109,000 | $9,000 | $2,100 |
Fremont, CA | $108,000 | $9,000 | $2,000 |
Los Angeles, CA | $107,000 | $9,000 | $2,000 |
Jersey City, NJ | $107,000 | $8,000 | $2,000 |
Marysville, WA | $106,000 | $8,000 | $2,000 |
San Jose, CA | $105,000 | $8,000 | $2,000 |
Germantown, MD | $104,000 | $8,000 | $2,000 |
Here are the top 10 highest paying cities for insurance agents in the US, along with some benefits of the area such as relative cost of living and other things of interest.
Green River, WY: Annual Salary $121,000; Monthly Pay $10,000; Weekly Pay $2,300; Hourly Wage $58
Pros: High annual salary, relatively low cost of living, scenic views and outdoor activities.
Santa Clara, CA: Annual Salary $113,000; Monthly Pay $9,000; Weekly Pay $2,100; Hourly Wage $54
Pros: High annual salary, proximity to Silicon Valley tech companies, mild climate, and diverse cultural offerings.
San Francisco, CA: Annual Salary $110,000; Monthly Pay $9,000; Weekly Pay $2,100; Hourly Wage $53
Pros: High annual salary, thriving cultural scene, world-renowned landmarks, and access to some of the best food and wine in the world.
Washington, DC: Annual Salary $109,000; Monthly Pay $9,000; Weekly Pay $2,100; Hourly Wage $52
Pros: High annual salary, rich history and culture, bustling nightlife, and proximity to national landmarks.
Fremont, CA: Annual Salary $108,000; Monthly Pay $9,000; Weekly Pay $2,000; Hourly Wage $52
Pros: High annual salary, proximity to Silicon Valley tech companies, mild climate, and excellent public schools.
Los Angeles, CA: Annual Salary $107,000; Monthly Pay $9,000; Weekly Pay $2,000; Hourly Wage $51
Pros: High annual salary, world-renowned entertainment industry, cultural diversity, and access to scenic beaches and mountains.
Jersey City, NJ: Annual Salary $107,000; Monthly Pay $8,000; Weekly Pay $2,000; Hourly Wage $51
Pros: High annual salary, proximity to New York City, diverse cultural offerings, and access to outdoor activities.
Marysville, WA: Annual Salary $106,000; Monthly Pay $8,000; Weekly Pay $2,000; Hourly Wage $51
Pros: High annual salary, affordable housing, and access to scenic natural landscapes.
San Jose, CA: Annual Salary $105,000; Monthly Pay $8,000; Weekly Pay $2,000; Hourly Wage $50
Pros: High annual salary, proximity to Silicon Valley tech companies, and access to world-renowned entertainment and cultural offerings.
Germantown, MD: Annual Salary $104,000; Monthly Pay $8,000; Weekly Pay $2,000; Hourly Wage $50
Pros: High annual salary, proximity to Washington, DC, diverse cultural offerings, and access to scenic natural landscapes.

Factors That Affect Insurance Agency Owner Salaries
I think it is pretty well known within the insurance industry that salaries are always going to be influenced by a variety of factors as insurance professionals. For example, insurance sales representative salaries can be affected by commission amount.
As an independent agency owner, there are nine factors to consider when determining compensation. Ultimately, it comes down to the agency’s overall profitability.
Without sales, there is no compensation. But assuming you have a profitable book of business, here are some other things that can effect wages of owners.
Factor | Description |
---|---|
Agency Revenue | Higher revenue means more can be paid, but unprofitable growth won’t help |
Profit Margins | Net profit margins determine a shareholder’s “draw” to cover taxes |
Co-Owners | More partners result in higher owner compensation, but it can impact non-owner employee pay |
Geographic Cost Of Living | Compensation may be adjusted based on the cost of living in different areas |
Full-Time Vs. Part-Time | Reducing work hours means reducing compensation; consider hiring a successor |
Tax Planning | Salary recommendations by tax advisors should be benchmarked |
Personal Preference | Owner’s lifestyle choices impact agency growth and profits |
Sales Pipeline | More recurring revenue may justify a higher salary |
Self-Confidence | Overcoming underearning and imposter syndrome can impact compensation |
Insurance agency owner salaries can be influenced by a variety of factors, including:
- Education And Experience: Insurance agency owners with higher levels of education and more years of experience may earn higher salaries. This may include earning a bachelor’s or master’s degree in a related field, obtaining relevant certifications and licenses, and gaining industry experience through internships or entry-level positions.
- Industry And Geographic Location: The industry and geographic location of an insurance agency can impact owner salaries. For example, insurance agency owners in urban areas may earn higher salaries than those in rural areas, and those working in industries such as healthcare or property and casualty insurance may earn higher salaries than those working in other areas of the insurance industry.
- Company Size And Type: Insurance agency owners who work for larger or more established agencies may earn higher salaries than those who work for smaller or newer agencies. Additionally, insurance agency owners who work as independent contractors may earn higher salaries than those who work for a larger agency as employees.
- Specialties And Certifications: Insurance agency owners who specialize in a particular type of insurance or who hold advanced certifications may earn higher salaries. For example, those who specialize in life insurance or who hold the Certified Insurance Counselor (CIC) designation may earn higher salaries than those who do not have these specialties or certifications.
How Insurance Agents Pay Themselves?
There are many strategies when it comes to paying yourself as the insurance agency owner. For me, I do a combination of all of these things at the direction of my CPA.
Make sure you ask a qualified tax consultant prior to making decisions but here is a list of ways to pay yourself as an insurance agent:
Payment Option | Description | Tax Benefits |
---|---|---|
Salary | Fixed amount paid on a regular basis | Deductible as a business expense |
Draw | Distributions/dividends from profits and retained earnings | Generally not subject to employment taxes, and can be taxed at a lower rate than a salary |
Bonuses | One-time payments for exceptional performance | Deductible as a business expense |
Commissions | Payments based on sales or revenue generated | Deductible as a business expense |
Benefits | Compensation in the form of non-wage benefits such as health insurance, retirement plans, etc. | Deductible as a business expense, and can be tax-free for the employee |
Expense Reimbursement | Reimbursement for business expenses incurred by the owner | Not considered income, so not subject to taxes |
The tax benefits of each option may vary based on the specific circumstances of the business, and it’s always a good idea to consult with an accountant or tax advisor before making any decisions.
Average Insurance Agency Owner Salaries By State
As an insurance professional, I understand that it can be helpful knowing the average amount you can expect to make as an insurance agency owner during your career and financial planning. However, it is important to remember that insurance agency owner salaries can vary by state.
Some states may have higher concentrations of insurance agencies and higher demand for insurance products, which can impact owner salaries. It is important to note that these salary figures are estimates and may not reflect the specific salary of an individual insurance agency owner.
State | Average Insurance Agent Salary |
---|---|
New York | $100,000 |
California | $97,500 |
Florida | $87,500 |
Texas | $85,000 |
Georgia | $80,000 |
Illinois | $80,000 |
North Carolina | $75,000 |
Michigan | $72,500 |
Pennsylvania | $78,000 |
Ohio | $70,000 |
Salary Trends And Projections For Insurance Agency Owners
As an independent insurance broker, I know that seeing salary trends and projections can provide useful data when making decisions about your career path or financial future.
Insurance agency owner salaries have fluctuated over time and may continue to do so in the future.
Here are some trends and projections for insurance agency owner salaries:
- Current Salaries Compared To Previous Years: Insurance agency owner salaries have generally increased in recent years. According to data from the Bureau of Labor Statistics, the median salary for insurance agency owners was $53,000 in 2019, up from $49,000 in 2015. However, it is important to note that these figures may not accurately reflect the salaries of all insurance agency owners, as they do not take into account factors such as education, experience, and specialty.
- Projections For Future Salary Trends: It is difficult to predict with certainty what the future will hold for insurance agency owner salaries. However, some industry experts believe that demand for insurance products will continue to grow in the coming years, which could lead to increased salaries for agency owners. Additionally, the increasing use of technology in the insurance industry may lead to new job opportunities and higher salaries for agency owners who are able to adapt to these changes.
Conclusion
As an insurance broker, I understand how important salaries are for insurance agency owners. It is important to understand they are influenced by a variety of factors such as education, experience, industry, location, company size and type, specialties, and certifications. Although difficult to predict future salary trends, in recent years, the insurance agency owner salaries have generally increased.
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