owning more than 1 car, there's an increasing demand for car insurance companies and brokers. The steps below explain what you need in terms of education, entrepreneurial skills, and other resources in order to start a car insurance company.
1-Obtain your property and casualty insurance license from your state.
- Most states require you to complete a pre-licensing course with an accredited insurance education company, after which you must pass a state exam.
- In most countries, the pre-requisite for enrolling in an insurance pre-licensing course is that you have a bachelor's or compatible degree.
2-Construct a business plan for your car insurance company
in which you outline how you'll attract customers, which insurance
carriers you'll work with, and what your start-up costs are, as well as
your projected income for the first 2 years.
3-Raise the investment capital you need to start a car insurance company.
- If you're starting a car insurance company as a second job, you might be able to finance your start up from your own savings or credit.
- If you're planning to run your car insurance company as a full-time job, you will need a loan from your bank or funds from private investors to cover your start-up costs and living expenses until you start generating revenue.
4-Register your company with your city to obtain a business license.
5-Choose a location for your car insurance company.
- Even if you're planning to drive to customers yourself to meet them, you'll need a quiet place in your home where you can take calls, fill out your paperwork, and manage your business.
- If you want an office where customers can come to you, make sure to choose office space that is accessible and visible.
6-Purchase liability and property insurance for your car insurance company to protect you from lawsuits and property losses.
7-Determine which insurance carriers you want to work with and which car insurance policies you want to sell. The more policies you have, the more choices you can offer clients.
- Most big insurance carriers offer liability insurance, collision insurance, and comprehensive insurance, as well as multi-car insurance policies and umbrella policies.
- Investigate whether you want to sell insurance for special niches, such as vintage car insurance, motorcycle insurance, and RV insurance.
8-Market your car insurance company by advertising in local publications, at driving schools and the DMV, and online.