Introduction With millions of vehicles hitting Indian roads every year, car insurance is no longer optional—it’s essential. This has opened a vast opportunity for individuals looking to build a rewarding career in insurance sales. Becoming a car insurance agent in India is a smart move, offering a low investment, flexible work environment, and strong income potential. In this article, we’ll walk you through the complete process of becoming a car insurance agent, including eligibility, steps, skills required, income insights, and tips for long-term success.
- Rapidly Growing Industry India’s auto industry is growing at a fast pace. With each vehicle purchase comes the legal requirement for motor insurance. This ensures a never-ending stream of customers.
- Low Start-Up Cost You don’t need to rent an office or invest heavily in marketing. Starting with just your smartphone and internet connection is enough.
- Work Flexibility Whether you’re a homemaker, student, retiree, or full-time employee, this career can fit into your schedule.
- Attractive Earnings Earn commissions from each policy sold. Renewals and cross-selling other types of insurance can significantly increase your income over time.
- No Prior Experience Needed All you need is to complete a short training program, pass an IRDAI exam, and you’re ready to sell.
- Be at least 18 years old
- Have completed Class 10 (minimum educational qualification)
- Possess a valid Aadhaar card and PAN card
- Be fluent in the local language and have basic communication skills
- Be willing to take online or offline training
Step 1: Choose a Reliable Insurance Aggregator or Insurer Start by partnering with a registered insurance aggregator like Square Insurance, which provides POSP (Point of Sales Person) onboarding.
Step 2: Register as a POSP Agent You’ll be asked to submit documents like:
- Aadhaar card
- PAN card
- Passport-size photo
- Class 10 certificate
- Bank account details
Step 3: Undergo Mandatory Training IRDAI requires agents to complete 15 hours of training. The course includes:
- Basics of car and motor insurance
- IRDAI rules and compliance
- Types of policies
- Customer handling and digital sales
Step 4: Pass the IRDAI Certification Exam Post training, you must clear a short certification test. Once you pass, you will receive a license to sell car insurance policies in India.
Step 5: Start Selling Use your insurer’s platform or portal to start selling insurance online or offline. You’ll be assigned a dashboard where you can track leads, policies sold, commissions earned, and customer renewals.
- Good Communication You must clearly explain policies to customers and resolve their doubts.
- Persuasive Sales Ability Many customers may hesitate to buy insurance. Strong persuasion skills help you close deals.
- Knowledge of Insurance Products Understanding Third-Party, Comprehensive, and Add-on covers helps in recommending suitable plans.
- Follow-up Techniques Most leads convert after 2-3 follow-ups. Staying persistent is key.
- Digital Fluency Using CRM tools, insurance dashboards, and even WhatsApp for communication will help you stay productive.
- Aadhaar card
- PAN card
- Passport-size photo
- Class 10 marksheet or certificate
- Cancelled cheque or bank details
Commission Structure
- New Car Policy: 10–15% commission
- Renewals: 10% (often auto-renewed)
- Add-ons and other services: Extra commission
Example: If you sell 60 policies/month with an average premium of ₹5,000:
- Monthly Earnings = ₹30,000–₹45,000
- Plus bonus + renewals = Potential ₹50,000+/month
Yearly Growth Potential:
- Year 1: Build client base, average monthly income ₹25K–₹40K
- Year 2: Add renewals + referrals = ₹60K–₹1 lakh
- Start with Friends & Family Let your close network know you’re now an agent.
- Use Social Media Post customer testimonials, awareness content, and policy reminders on platforms like Instagram, WhatsApp, and Facebook.
- Attend Local Events & Expos Vehicle expos or RTO events can be a great lead source.
- Partner with Local Garages & Mechanics They meet car owners daily and can refer clients.
- Offer Value Additions Free claim assistance, reminders for renewals, and RTO-related help builds loyalty.
Q1. How long does it take to become a car insurance agent? Usually 5–7 working days including training and exam.
Q2. Can I work as an agent part-time? Yes. You can start part-time and scale up to full-time if desired.
Q3. What is the cost to become a car insurance agent? Mostly ₹500–₹1000 for registration and training.
Q4. Do I need to visit clients personally? No. You can handle sales and document uploads online.
Q5. Can I sell other insurance products too? Yes. Once you’re trained as a POSP, you can sell health, life, travel, and two-wheeler insurance too.
- Overpromising Returns Be realistic while explaining policies. Don’t mislead customers.
- Ignoring Renewals Many agents focus on new clients and lose track of existing ones. Stay in touch.
- Lack of Product Knowledge Invest time in understanding each product to handle queries confidently.
- Not Using Technology Manual record-keeping and outdated processes slow you down. Go digital.
Becoming a car insurance agent in India is not just a smart move—it’s a career that offers great income, flexibility, and social respect. With minimal investment, digital tools, and the right approach, anyone can succeed in this growing industry. Stay updated with IRDAI rules, invest in customer relationships, and keep learning.
If you’re ready to start your career, apply as a POSP through trusted partners like Square Insurance and begin your journey today.
