How do I set up my own car insurance company?

I’ve read that the car insurance industry is booming right now, and I’m ready to embark on a new career path. What steps should I take to set up my own car insurance company?

Answer
You’re right about the insurance industry booming! As of 2020, the U.S. insurance industry is worth $1.2 trillion, and it’s still growing at a rate of 4% annually.
However, starting a car insurance is a difficult task. You’d be competing against local, regional, and national giants with established customer bases and bottomless capital.
But if you’re feeling confident about your abilities and ambition, follow these steps to begin your insurance company:
  • Start by obtaining a property and casualty insurance license from your state.
  • Put together a strong business plan that includes competition, risk, revenue, and profit estimates.
  • Decide whether you’ll insure your customers directly or connect them with larger providers.
  • Understand the costs and secure financing through your business plan.
  • Acquire a business license and business insurance.
  • Hire a team.
  • Market your business.
  • Continually update your business plan as needed.
If this seems too challenging, you could also take advantage of the insurance boom by starting a career as an insurance agent! Many providers will even pay for your licensing courses and exams, so it may be worth considering.
If you’d like to learn more about the insurance industry, start by finding the coverage you need with Jerry. A licensed insurance broker, the Jerry app can help you compare quotes from over 50 top insurers like Allstate and Nationwide for free. When you find a plan you like, Jerry can help you sign up—no phone calls, paperwork, or headaches required!
Eric Schad
Answered on Nov 17, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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