Insurance agent state farm salary: Agent Earnings – Costs, Compensation, Development

State Farm Insurance Sales Agent Salary

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Updated August 22, 2022

$44,198yearly

To create our salary estimates, Zippia starts with data published in publicly available sources such as the U.S. Bureau of Labor Statistics (BLS), Foreign Labor Certification Data Center (FLC) Show More

$21.25 hourly

Entry level Salary

$29,000

yearly

$29,000

10%

$44,198

Median

$66,000

90%

How Much Does State Farm Pay Insurance Sales Agents?

State Farm pays Insurance Sales Agents $44,198 per year on average. This is 10% less than the national average salary for Insurance Sales Agents.
Insurance Sales Agents make $49,587 per year on average, or $23.84 per hour, in the United States. Insurance Sales Agents on the lower end of that spectrum, the bottom 10% to be exact, make roughly $29,000 a year, while the top 10% make $66,000.

Location impacts how much an insurance sales agent can expect to make. Insurance Sales Agents make the most at State Farm in New York, NY, Huntsville, AL and Fullerton, CA.

How Much Does State Farm Pay Insurance Sales Agents By Location?

If you want to get paid the most as a Insurance Sales Agent at State Farm, New York, Huntsville and Miami are the best options, as they are the highest-paying cities in this company.
Additionally, cities like Fullerton and Richardson also report highly competitive salaries for Insurance Sales Agents at State Farm.

Which State Farm competitors pay insurance sales agents the most?

If you want to compare the insurance sales agents salaries between State Farm and some similar companies, being employed by a company such as American Family Insurance or MetLife would be a smart choice, as they are the highest-paying companies in this field. Additionally, companies like USAA and Nationwide also report highly competitive salaries for insurance sales agents.

Frequently asked questions about State Farm Insurance Sales Agent salaries.

How Much Does State Farm Pay Insurance Sales Agents An Hour?

State Farm pays insurance sales agents $24 an hour, on average.

What Is The Starting Pay For A Insurance Sales Agent At State Farm?

The starting pay for a Insurance Sales Agent at State Farm is $30,000 per year, or $14 an hour.

How Much Does State Farm Pay Compared To American Family Insurance?

State Farm pays $49,587 per year on average compared to American Family Insurance, which pays $45,840. That works out to $24 per hour at State Farm, compared to $22 per hour at American Family Insurance.

Have more questions? See all answers to common company questions.

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Updated August 22, 2022

How Much Do State Farm Agents Make? (Average Salary 2022)

Are you looking into a possible career as an insurance agent? Is your end goal to secure a position working with State Farm? If so, this type of job is a good one to have, especially if you’re interested in all things finance or enjoy working with other people.  

The job outlook for an insurance agent is set to grow 7% from 2020 to 2030. Insurance agents are in high demand, so if you have the right qualities and licenses, then a career with State Farm isn’t too far away. 

Not to mention, they do make good money. All agents are compensated based on commission and sales, so however much you sale is how much you earn. 

There is more to State Farm agents than just the competitive salary. There are roles, responsibilities, and a process to becoming successful. Here’s a breakdown of everything you need to know about becoming a State Farm agent (even the salary aspects). 

State Farm is a popular insurance company, offering people insurance for their home, property, life, car, and health and disability. 

There is a demand for people who can sell those types of insurance to those who need it. That is where State Farm agents come in. 

Responsibilities as An Agent

The essential role is to provide expertise and advice on products or services that State Farm offers. Many people don’t understand the terms or phrases in the insurance industry and will usually need the guidance of a more experienced individual. 

The typical responsibilities of an agent include: 

• Provide valuable and relevant information to customers on the risks and benefits of insurance 
• Help customers make the best choices in selecting an insurance policy 
• Educate customers on the aspects of insurance and clear up any confusion when needed
• Stay up to date on company policies 
• Network to find potential clients 
• Work alongside a team of other agents 

What Does Being an Agent Look Like? 

Many people believe being an insurance agent just requires you to sell policies to people. While that is an important part of the job, it goes a bit deeper than that.

State Farm offers insights into what it is like to work as an agent for them. 

Many agents start in an entry-level position, ensuring customers get the insurance they need. As they progress in their career, agents typically will run their own team of other agents. Most agencies are very team-oriented and work to make sure every agent is successful in their career and is enjoying it at the same time. 

Being a State Farm agent requires you to work closely with others, getting to the center of their needs, and identifying which policy or plan is best for them. 

The job of an insurance agent is important in giving back to the community by helping them become covered in the event of a disaster. 

Here’s the more important information. State Farm Agents are independent contractors, meaning they earn compensation based on the sales they make. 

How Do Agents Earn Money? 

State Farm agents earn money by making sales. Their pay is based on a competitive salary, commission, and sales. That is why it is important to have networking skills so you can build a customer base and maintain customer loyalty. 

The bulk of your pay comes from commissions. The commission you earn will vary depending on the agreement between you and your State Farm agency. 

But, on average, agents can expect between 40%-90% of an annual premium for the first year of sales you make. Most agents also earn bonuses (up to $5,000 annually). 

How Much Do Agents Make? 

How much do State Farm agents truly make? 

On average, the median annual salary for an insurance agent was $52,182 in 2020. According to PayScale, the annual salary for State Farm agents was around $34,646. 

As agent work their way up, the salary will increase, and could be earning as much as $127,000.  

What Are the Benefits of Being an Agent? 

Most jobs offer a range of benefits to employees. With State Farm, their agents are on the receiving end of great benefits. 

These benefits include: 

• Can typically maintain your own schedule 
• The ability to select and lead your own team of agents 
• Travel opportunities (both in the U. S. and abroad)
• Signing bonuses and paid training programs 
• Tuition aid 
• Health and welfare coverage 

Any job application process will probably require an interview! That is a no-brainer, but there may be other steps that you’ll need to take to secure a position as an agent. 

The Steps to Become an Agent

1. Pick Your Niche: You’ll need to decide what type of insurance you want to sell if your goal is to work for State Farm. Their products include life, home, car, and property insurance. 
2. Research State Requirements: You will need to become licensed in whatever state you decide to work in. Most states require a pre-course and then a real exam. You’ll want to prepare ahead of time for the exam, so you pass! 
3. Take the Insurance License Exam: Once you complete any pre-exam requirements (a class or prep course), you’re ready to take the final licensing exam. You can’t do this online and are usually required to go to a testing site.  
4. Submit Your Application and Complete a Background Check: Once you pass your final exam, you’ll need to submit your licensing application with a background check to obtain your official license. 
5. Start Applying to Jobs: You’ve reached the last step (or close to it). You can go directly to State Farm’s website to look for jobs or apply at your local State Farm agency. You’ll typically submit your application, take a pre-employment assessment, and then interview with them. 

What Does State Farm Look for in An Agent? 

Most companies are selective when they look for candidates who can provide value to their team and get the job done. 

Here’s a quick list of what State Farm looks for in an agent: 

• Strong ethical behavior 
• Ability to create and build a long-lasting relationship with customers 
• Ability to organize and run a business with marketing and customer service as the main goal 
• A drive to meet the needs of customers and to grow financially and personally 
• Proven success of driving business results (can be in any field)
• Proven success in sales, management, and ownership 
• A desire to make a positive impact in the community 
• Has key entrepreneurial traits and skills to provide value to the business 

If you have what it takes to become a successful insurance agency, then State Farm may be the job for you.