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How do you make a car insurance company?

I want to start a business selling something everyone needs, and I immediately thought: car insurance. How do you make a car insurance company?

avatar
Chloe Jenkins · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
You’re completely right—every driver needs
car insurance
, so it could be a great business to get into.
Starting a car insurance company, however, is no small undertaking. It involves many steps, such as:
  1. Creating a business plan. Your business plan will be the bones of the operation. With it, you will set goals, figure out your financial needs, and identify potential risks.
  2. Determining the company’s legal structure. Take some time to do some research on whether you want your company to be a sole proprietorship, LLC, corporation, or something else.
  3. Coming up with and registering a company name.
  4. Obtaining a physical property for the business.
  5. Applying for a tax ID number and registering with your state through your state insurance commissioner’s office.
  6. Getting all necessary licenses and permits in your state.
  7. Hiring a team and marketing the business.
If you’d like to learn more about the insurance industry before you commit, start by shopping for the coverage you need with the
Jerry
app.
A licensed insurance broker, the Jerry app can help you compare quotes from more than 50 of the nation’s top providers for free. When you find a plan you like, Jerry can help you sign up and even help you cancel your old policy!
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

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