Calculate your insurance commissions by policy type. See new business vs. renewal rates, agency splits, and project your annual income from your book of business.
Rates based on typical US independent agent commissions. Your actual rates may vary by carrier and state.
Independent agent rates; captive agents typically earn 4-10%
Typical range: 10-15%
Typical range: 10-12%
You are the agency owner or independent agent keeping all commission
| Annual premium | $1,500 |
| New business rate | 12.5% |
| Renewal rate | 11.0% |
| Your new business commission | $188 |
| Your renewal commission | $165 |
Commission rates vary by carrier, state, and experience level. These ranges reflect typical rates for independent P&C and life/health agents in the US.
| Policy Type | New Business | Renewal | Notes |
|---|---|---|---|
| Personal Auto | 10-15% | 10-12% | Independent agent rates; captive agents typically 4-10% |
| Homeowners | 12-18% | 10-15% | Often bundled with auto; up to 20% in some markets |
| Commercial Property | 10-20% | 10-15% | Commercial lines typically pay more than personal |
| General Liability | 10-20% | 10-15% | Varies significantly by account size and industry |
| Workers Comp | 8-12% | 7-10% | State-regulated; state fund programs may pay 3-6% |
| BOP | 12-20% | 10-15% | Packages GL + property; follows commercial line rates |
| Umbrella/Excess | 10-15% | 8-12% | Personal umbrella shown; commercial may be higher |
| Life | 40-110% | 2-5% | Term 30-80%, whole 50-100%+, final expense 80-120% |
| Health | 4-7% | 3-5% | Increasingly PMPM ($15-30/member/month) not percentage |
Sources: industry averages from carrier commission schedules and independent agent associations. Your actual rates depend on carrier contracts, volume, and state regulations.
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Insurance agent commissions vary by policy type and whether you are independent or captive. For independent agents, personal auto typically pays 10-15% on new business and 10-12% on renewals. Homeowners pays 12-18% new and 10-15% renewals. Commercial lines like general liability and BOP pay 10-20% new and 10-15% renewals. Workers comp is lower at 8-12% due to state regulation. Life insurance first-year commissions range from 40-110% of the annual premium, but renewals drop to 2-5%.
New business commission is what you earn when a client first purchases a policy through you. Renewal commission is what you earn each year the client renews. Renewal rates are typically 2-5 percentage points lower than new business rates for P&C lines. The exception is life insurance, where first-year commissions can be 50-110% but renewals drop dramatically to 2-5%.
If you are a producer (agent) working under an agency, your commission is typically split between you and the agency. Common splits are 50/50 for new producers, 60/40 or 70/30 for experienced agents, and sometimes 80/20 or higher for top performers. The split applies to the total commission - so on a $1,500 auto premium at 12% commission ($180), a 60/40 split means you keep $108 and the agency keeps $72.
Annual income depends on your book of business size, average premium, commission rates, and whether you are captive or independent. A solo independent agent with 200 personal lines policies averaging $1,500 premium at 12% commission earns about $36,000 in renewals alone. Adding 50 new policies per year at 15% adds another $11,250. Top independent agents with 500+ policies and a mix of commercial lines can earn $100,000-$200,000+.
No. Captive agents (who sell for one carrier, like State Farm or Allstate) typically earn lower commission percentages but may receive a base salary, benefits, and leads. Independent agents usually earn higher commissions since they represent multiple carriers and generate their own business, but they bear all operating costs themselves.
Your book of business is the total collection of policies you manage. It is the foundation of your recurring income as an insurance agent. Each policy in your book generates renewal commissions every year it stays active. A healthy book grows over time as you add new clients faster than you lose existing ones. The value of your book is typically calculated at 1.5-2.5x annual renewal commissions when buying or selling.
It depends on how the client pays their premium. If a client pays their full annual premium upfront, the agent typically receives the full commission at binding. If the client pays monthly, the agent may receive commission monthly as premium is collected. Some carriers pay commission on the full annual premium at binding regardless of client payment schedule. Practices vary by carrier.
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