How Much Do Insurance Agents Make? Salary by State, Line & Experience (2026)
Insurance agents in the United States earn a median of $60,370 a year, and the average (mean) is $81,510, per the U.S. Bureau of Labor Statistics. The bottom 10 percent earn under $36,390 and the top 10 percent earn over $135,660. Where you land in that range comes down to your state, your line of authority, your experience, and whether you are paid salary or commission. Here is the full 2026 breakdown.
Insurance agent salary at a glance (2026)
| Measure | Figure |
|---|---|
| National median (BLS) | $60,370 |
| National mean (BLS) | $81,510 |
| Bottom 10% | Under $36,390 |
| Top 10% | Over $135,660 |
| Entry level (years 0 to 2) | $35,000 to $50,000 |
| Mid-career (years 3 to 7) | $55,000 to $90,000 |
| Experienced (8+ years) | $90,000 to $150,000+ |
| Top producers | $200,000+, uncapped |
Roughly 469,000 people work as insurance sales agents in the U.S., and the gap between the median ($60,370) and the mean ($81,510) tells you the most important thing about this career: a large group of high earners pulls the average up. Insurance pay is commission-driven, so the same license produces wildly different incomes depending on effort, market, and business model.
Insurance agent salary by state
State-level pay varies more than most people expect. These are mean annual wages for insurance sales agents from the U.S. Bureau of Labor Statistics state estimates:
| State | Mean annual wage |
|---|---|
| New York | $108,960 |
| New Jersey | $106,910 |
| Illinois | $105,150 |
| Minnesota | $100,750 |
| Massachusetts | $100,590 |
| California | $89,230 |
| Rhode Island | $86,310 |
| Kansas | $82,170 |
| Florida | $81,410 |
| South Dakota | $75,660 |
| North Carolina | $74,870 |
| Nebraska | $66,200 |
| Texas | $62,710 |
Two things to keep in mind when reading this table. First, high-wage states are also high-cost states; a $100,000 income in New York City buys less than $70,000 in San Antonio. Second, state means hide huge metro-level differences: within Texas, the Dallas-Fort Worth metro averages about $67,510; within Arizona, Phoenix averages about $78,060 while Tucson sits near $50,400; and the Philadelphia metro averages about $79,470, per BLS metro-area estimates.
The bigger lesson: geography matters less than your book of business. A top producer in a small Texas market out-earns an average agent in Manhattan every year.
Why the "average" insurance agent salary is misleading
Insurance is one of the widest-spread occupations the BLS tracks. The bottom 10 percent earn under $36,390 while the top 10 percent earn over $135,660, nearly a 4x gap for the same job title. Three things create that spread:
- Commission dominates. Most agent income scales with what you sell, not the hours you work. New agents earn little while building a pipeline; established agents collect renewals on years of past sales.
- Renewals compound. Every policy you sell this year can pay you again next year. An agent in year eight is being paid by eight years of accumulated clients, not just this year's hustle.
- Business model. Captive agents trade a safety net (base pay, leads, brand) for smaller commission shares. Independent agents keep more of every dollar and own their book, but start with no floor.
So when you see one website report $57,000 and another report $80,000 for the same state, neither is wrong. They are averaging different mixes of the same very wide distribution.
Salary by line of authority
What you sell shapes what you earn and how your income behaves:
| Line | Commission profile | Best for |
|---|---|---|
| Property & Casualty (auto, home, commercial) | Smaller commissions per policy, but policies renew every year, building durable recurring income | Agents who want compounding, predictable income |
| Life & Health | Larger upfront commissions on life and annuity sales, more dependent on continual new business | Strong closers and relationship sellers |
| Personal Lines | Home-and-auto subset of P&C with the same renewal-driven economics | Fast entry into P&C-style income |
| Medicare / final expense | High-volume L&H niches with strong per-sale payouts and a defined market | Agents who want a repeatable, focused market |
Commercial P&C and Medicare are consistently among the higher-earning niches because policies are bigger, retention is high, or volume is repeatable. Many successful agents eventually carry both a P&C and a Life & Health license so they can serve a household's full needs and stack two income streams.
Salary by experience level
| Experience | Typical annual income | What drives it |
|---|---|---|
| Entry level (0 to 2 years) | $35,000 to $50,000 | Base pay, draws, and first-year commissions while building a client base |
| Mid-career (3 to 7 years) | $55,000 to $90,000 | Renewal commissions start stacking on top of new business |
| Experienced (8+ years) | $90,000 to $150,000+ | Large renewal book, referrals, and niche specialization |
The income curve in insurance is back-loaded. The first two years are the hardest because you are building from zero, and this is where most people quit. Agents who push through find that renewals keep paying while they add new business on top, which is why veteran agents rarely leave the profession.
What agents make in Texas, Arizona, and Pennsylvania
If you are getting licensed in one of the three states Ava Pro serves, here is the short version:
- Texas — statewide mean of $62,710, with metro markets like Dallas-Fort Worth higher. Texas has no pre-licensing course requirement, so you can be licensed and earning in weeks. Full breakdown: how much insurance agents make in Texas and the highest-paying insurance jobs in Texas.
- Arizona — Phoenix-metro agents average about $78,060, among the stronger non-coastal metros in the country. Arizona also has no required pre-licensing course. Start here: Arizona insurance license requirements.
- Pennsylvania — Philadelphia-metro agents average about $79,470. Pennsylvania requires 24 hours of pre-licensing education before the exam. See our Pennsylvania licensing courses.
How to raise your number
Across every state and line, the agents who climb the range do the same things: they pick a niche instead of selling everything to everyone, they treat renewals as the real product by focusing on retention, they add a second line of authority once the first is producing, and they prospect consistently even in good months. None of that starts until you hold a license, which is the one fixed, fast step in the whole career.
Ready to start earning?
Your income clock starts the day you can sell. Ava Pro Licensing's exam prep courses for Texas, Arizona, and Pennsylvania are built to get you licensed in 14 days, with a pass-first-time guarantee, a full practice question bank, and state-specific content written by working agents.
Official sources & further reading
- U.S. Bureau of Labor Statistics, Insurance Sales Agents (OEWS)
- U.S. Bureau of Labor Statistics, Occupational Outlook Handbook
- BLS OEWS state estimates
Last updated: July 2026
Frequently asked questions
How much does the average insurance agent make?
- The median annual wage for insurance sales agents in the United States is $60,370, and the mean is $81,510, per the U.S. Bureau of Labor Statistics. The mean runs higher than the median because top producers pull the average up. The bottom 10 percent earn under $36,390 and the top 10 percent earn over $135,660.
Which states pay insurance agents the most?
- New York leads with a mean annual wage around $109,000 for insurance sales agents, followed by New Jersey (about $107,000), Illinois (about $105,000), Minnesota and Massachusetts (both around $100,000+), per BLS state estimates. High-cost metro markets and commercial lines concentration drive those numbers up.
Do insurance agents get paid a salary or commission?
- Most insurance agent income is commission. Captive agents who represent one carrier often receive a base salary or draw plus commission, while independent agents typically earn pure commission but keep a larger share and own their book of business. Commission is why two agents with the same license can earn $35,000 and $200,000 in the same year.
How much do insurance agents make in their first year?
- Most new agents earn $35,000 to $50,000 in their first year or two, relying on base pay, draws, and first-year commissions while they build a client base. Income climbs sharply once renewal commissions begin stacking on top of new business, which typically happens around year three.
Can insurance agents make six figures?
- Yes. The top 10 percent of insurance sales agents nationally earn over $135,660 per the BLS, and experienced producers with a large renewal book, a profitable niche, and steady prospecting routinely earn $100,000 to $150,000 and up. Because income is commission-based, the ceiling is uncapped.
Is being an insurance agent a good career financially?
- For self-driven people, yes. Licensing takes weeks, not years, state fees are low, and no degree is required. Renewal commissions compound over time, so agents who push through the lean first two years often out-earn salaried careers with far higher barriers to entry.