How Much Can You Make as a Licensed Insurance Agent in California?

Real talk: the numbers, the upside, and what most people don’t tell you about the business.

Insurance Agent Pay: The Short Version

Entry-level insurance agents in California make between $42,000 and $65,000 a year (base plus first-year commissions) if you stick with it for a full year. The average full-time agent (2+ years licensed) makes $65,000–$105,000+ depending on product mix and hustle.

Commission vs Salary: What’s the Deal?

• Captive agents (work for State Farm, Allstate, Farmers, etc.): usually get a small salary/draw, then commission on each sale.
• Independent agents (run your own shop): 100% commission, higher earning ceiling.

Most new agents start out with a base pay to keep the lights on, but the real money is in commission and renewals.

How Commissions Work

• Auto/Home: 8–15% first-year commission, 2–8% renewal
• Life/Health: 30–90% first-year (yes, really), 2–10% renewal
• Commercial: 10–20% first-year, 2–10% renewal

The more policies you write and keep on the books, the higher your ongoing monthly income. Residuals matter.

Top Performers

Serious agents—those who build books of business and work their leads—can earn $120,000 to $250,000+ a year after 3–5 years. There are California agents making $400K+ (but that’s the top 2%).

What Does it Take?

• Full license (P&C and/or Life/Health)—that’s what we help you get
• Willingness to prospect, call, and keep learning
• Sticking through year one—the hardest year
• Getting with the right agency, captive or independent

Is Insurance a Good Career in 2025?

It’s one of the only careers where you can double or triple your income in 24 months without a degree. Flexible hours, no ceiling, and you’re building a book that pays you month after month—whether you’re new to the workforce, switching from another industry, or looking for control.

How Do I Start?

Here’s how you actually go from “thinking about it” to getting paid:

1. Take Your 52-Hour Prelicensing Course: Sign up online and complete your required state hours—Property & Casualty, Life & Health, or both. Do the course at your pace (most people finish in 2–3 weeks).
2. Apply for the State Exam: Once you finish your hours, you’ll get a certificate of completion. Use this to register for the official state exam through the DOI or their partner PSI.
3. Pass the Exam: Show up at a PSI test center (or take it online), score at least 60%. (GTA’s prep will get you ready.)
4. Get Fingerprinted & Apply for Your License: Do fingerprints at the test center. Then apply online with the California DOI. Most people get their license in 2–3 weeks.
5. Get Appointed with a Carrier or Agency: Interview or apply with insurance companies/agencies. They’ll officially “appoint” you so you can legally write business.
6. Start Selling: Write your first policy and get paid. The grind is real, but so is the income.

Ready to make the jump? Start your prelicensing course today and you could be working—and earning—faster than you think.

Want to understand California's new annuity rules? Read our SB 263 annuity CE guide.

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