If you want to be part of an industry that grows, on average, 15% every year, learning how to open an auto insurance company can offer you a tremendous job opportunity. In most countries, it is mandatory for motorists to renew their car insurance policy every year, and with an ever-increasing number of families owning more than one car, there is an increase in demand for insurance companies and for the mediators. The next steps explain what you need in terms of education, business skills, and other resources to open your own auto insurance company.
Steps
Step 1. Obtain your property and casualty insurance license from the offices in your country
- Many states require you to take a licensing course with accredited insurance companies, after which you will need to take a state exam.
- In many countries, the prerequisite for taking part in such a course is to have a bachelor's degree or equivalent.
Step 2. Design a business plan for your company in which you will explain how to attract customers, which insurance operators you will work with, what the initial costs of the business are and what the economic payback plan is in the following 2 years
Step 3. Increase the investment capital you need to open an insurance company
- If you start a company as a second job, you need to be able to finance your business with your personal savings.
- If, on the other hand, you plan to make your insurance company your primary job, you will need a loan from a bank or investment fund to cover the opening and running costs before generating any income.
Step 4. Register the company in your city to obtain a business license
Step 5. Choose a location for your automobile insurance company
- Even if you plan to visit your customers personally, you will need a quiet place from which to make phone calls, fill out paperwork and manage your business.
- If you want an office where customers can come in person, be sure to choose a location that is spacious, accessible and visible.
Step 6. Take out property and liability insurance from your own company to protect yourself from lawsuits and loss of assets
Step 7. Choose the insurance operators you want to work with and the package of policies you want to sell
The more policies you offer, the more likely you are to attract customers.
- Many insurance companies offer liability, accident, comprehensive insurance, multi-car insurance, and protection insurance.
- Find out if it is convenient to sell insurance for niches, such as, for example, for vintage cars, motorcycles and campers.
