What is the Commission Structure of a Car Insurance Agent?

The car insurance sector in India has been growing rapidly. As per recent findings, it has been found that the car insurance sector has been valued at more than Rs. 70000 crore and a growth rate of around 11% and above.  

The figures given above indicate the opportunities for car insurance agents and companies. If you are someone who wants to become a car insurance agent, then you have landed on the right page. This article will give you details about a car insurance agent’s job profile, expected remuneration, commissions, benefits, and other details. 

Who is a Car Insurance Agent?

A car insurance agent is an insurance agent who sells car insurance in particular. They can be referred to as a POSP agent as well who specifically sell car insurance products. 

There are different types of car insurance, comprehensive car insurance, third-party car insurance, and own-damage car insurance policies. As a car insurance agent, you have to sell all these three types of car insurance to prospective clients or new car owners. 

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Job Profile of a Car Insurance Agent 

The job profile of a car insurance agent includes acquiring new clients who have purchased a car recently or whose car insurance is about to end. Then pitch to them about the car insurance you are selling. You need to be aware of each clause of the car insurance policy you are pitching to the client. 

You need to understand the requirements of the car owner and pitch to them accordingly. You need to have good convincing skills to win over the heart of the prospective client to sell them the insurance. You need to have a problem-solving attitude when and if the client claims the insurance or asks different questions regarding the benefits and facilities. 

Travelling can also be a part of a car insurance agent’s life. Since clients that you target may live far apart and reaching them would require you to travel every day. While there are different challenges in this job, there are a lot of exciting opportunities as well.

How to Become a Car Insurance Agent?

The process to become a car insurance agent is easy. The procedure is similar to  the one required to become a POSP insurance agent

Firstly, you need to qualify the requirements or eligibility criteria set by IRDAI which are as follows – 

  • You should be over 18 years. 
  • You must have a 10th standard certificate that shows that you have cleared the examination.
  • You must have a valid Aadhaar and PAN card.
  • You must be willing to complete the 15-hours IRDAI training regarding car insurance and then clear the examination for the license. 

So, once you meet all these criteria and get the license, you can start working as a car insurance agent. Once you get the license, you can join other insurance companies as well and sell car insurance for them.

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Commission of a Car Insurance Agent

The commission of a car insurance agent depends on the price of the car and the type of policy you are selling. Suppose, you sold a comprehensive 4-wheeler policy, then you can earn around 15%. While selling an ‘Own damage’ car insurance policy can help you earn around 19.5% as per recent updates from IRDAI. Thus, it is the car price that will decide how much the commission will be. On a third-party insurance policy, usually, the commission rate is lower than the above two types of car insurance policies. 

Benefits of Becoming a Car Insurance Agent

There are ample benefits to becoming a car insurance agent – 

  • You can work from home at your convenience.
  • There are a lot of incentives and bonuses when you achieve your target.
  • With the rise in the number of car buyers and mandatory car insurance requirements, it is easy to sell car insurance policies.
  • IRDAI has increased the commission for the car insurance agents as well. 


If you want to become a car insurance agent, this is one of the best times to do so. It will take a few minutes to apply and then a training session of 15-hours and then clear your examination to start your career as a car insurance agent and earn unlimited commission.