The Minimum to Launch
You can technically start writing insurance with:
- Insurance license: $200–500 (exam prep + exam fee + application)
- E&O insurance: $800–2,000/year (required by most carriers)
- Appointments: Free (carriers appoint you at no cost)
- Basic website: $500–2,000 (optional but recommended)
- Total minimum: Under $3,000
The catch: without carrier appointments, you can't write business. And getting carrier appointments takes 6–18 months, a proven track record, and significant premium volume — none of which a new agent has.
The Smarter Path: Join a Network
Independent agency networks (aggregators) solve the appointment problem by giving new agents access to their existing carrier relationships. Instead of spending 18 months getting direct appointments, you can start writing business immediately under the network's agency code.
Network costs vary widely:
- Some networks charge monthly fees ($200–600/month)
- Some take a portion of your commission split (80/20 is common)
- Some charge both
- Some charge nothing
My Independent Agent (MIA) charges no upfront fees, no monthly fees, and offers an 80/20 split. When you hit certain premium thresholds, the split improves. See how MIA works →
Ongoing Costs to Budget For
Once you're writing business, plan for:
- E&O insurance: $800–2,000/year (non-negotiable)
- Comparative rater software: $100–200/month (optional if you're in a network that provides it)
- Marketing/advertising: Variable — $0 if you rely on referrals, $500–2,000/month if you run paid ads
- Office space: $0 if home-based, $500–2,000/month if commercial
- Licensing renewal: $50–200 every 2 years depending on state
Many agents run successful agencies from home with total monthly overhead under $500. The commission income compounds quickly — by year three, most established agents are earning more than they ever did working for a captive carrier.