UPDATED: October 13, 2022

Are you an aspiring State Farm Agent? State Farm insurance agents provide a great service to their customers by identifying a customer’s financial needs and choosing the right banking and insurance products to help achieve those financial goals.

For the valuable service they provide, State Farm agents receive a base salary, many benefits and commissions on sales that they make. .

In this article, we’ll dive deep into what you can expect to earn as a State Farm insurance agent. Spoiler alert: there are other insurance companies where you can actually earn more. Read on and see if it’s right for you!

How much do State Farm insurance agents make?

According to PayScale, the average State Farm Agent base salary is $34,646 a year, which is pretty reasonable when you consider that you’ll be getting commissions and benefits on top of that.

How much commission do they make?

Just like the agents from other fields, you can also receive commissions from the policies you sell as a State Farm Insurance Agent. This is where you’ll make the bulk of your income. 

As a State Farm agent, you can expect a generous commission of  40 – 90% of the annual premium during the first year of any plans that you sell. 

For the next 2 to 4 years, your follow-up commission on those same sales will be between 2% to 5%. 

The actual commission you will receive during your term as an agent could vary based on your agreement with State Farm. 

If you think your client will keep the purchased policy longer than expected, you can request a commission rate renewal. 

Though you should also know that there will be a commission refund in case your client suddenly decides to cancel the policy during the first year.


On top of your commission, you can also receive potential bonuses with an average of $5,000 dollars annually.

Other benefits on top of salary

On top of their salary offer, State Farm also has a list of Outstanding Benefits. The said benefits serve as a reward, for the agent’s hard work and perseverance.


By being a State Farm Agent, you will gain opportunities to widen your knowledge and practice your skills through the training that they will provide.

The provided training usually lasts for about 17 weeks and it includes State Farm Product training, Business Management, and Team Leadership training, and Field Development Training.

Get the Opportunity to Run Your Own Business and Lead a Team

Since you are considered as an independent contractor, being a State Farm agent will give you an opportunity to develop yourself, build your own business, and help your community.

An independent contractor means that you are self-employed and you would have the opportunity to run your own Insurance Business under State Farm. 

When you are a State Farm agent, you can lead your own team and you will have the freedom to work at your own time and pace. 

Full Support and Experience

State Farm gives complete and hands-on support to their agent. You can ask help and question to other State Farm agents.

Travel Incentives & Bonuses

After successfully helping your clients, you can expect worldwide travel incentives and bonuses so you can enjoy a job well done!

Hundred of Insurance Products to Market

You will also have the opportunity to market and sell a variety of insurance products that allows you to assist more needs of the people within your community which also means more opportunity to help them.

Disability Support 

If you need help to accommodate a disability, you can request help from their Career Support Center and they will send it to you.

This list sounds amazing, right? Because aside from real money, you’ll also have real experiences.

What Are the State Farm Agency Owner Requirements?

Before you become a State Farm Agent, you will need to fulfill and submit the following requirements:

Submit an application to State Farm Agency Career Track Program.

To begin the process, you’ll submit your application using this link: https://www.statefarm.com/careers/become-an-agent/contact-recruiter.

Just fill in the form that you will find in that link, attach requested files such as resume, and link to your LinkedIn profile. After your submission, State Farm will contact you regarding the next steps of the application process.

Answer and pass the given questionnaire.

State Farm uses a tool called the Sales & Leadership Career Profile which is designed to predict the likelihood of someone’s success in a sales and business leadership career. 

It consists of questions that consider your profile such as, Background, Current situation, Financial situation, Recruiting experience, Work preferences, Goals and Motivations, Familiarity with the career, and  Business leadership aptitude.

You must achieve an acceptable result on this questionnaire in order to pass and on to the Assessment. A “not acceptable” result requires you to wait 12 months before trying again. 

Pass the Assessment

Then, you’ll undergo another online assessment that evaluates your knowledge, skills, abilities, and other attributes that are essential to success as a State Farm agent. 

Just like for the questionnaire, you must achieve an acceptable result in this assessment in order to pass and move on to the Candidate Review. A “not acceptable” result requires you to wait 12 months before trying again. 

Good Credit History

Credit History plays a big part in getting just about any job. Your credit history determines your reliability and accountability which is important in finding a team member for most companies.

A long time ago, it was important for loans and credit acquisition but now, having a good credit history is also a must if you want to be a State Farm Agent.

Have a Good Understanding of the Business

You will need to develop a clear understanding of the new career that you are about to embark on, such as the products that you will sell and even the pricing of State Farm’s competitors.

Present a Business Proposal

You will be required to put everything that you learned in a Business Proposal, which you will present to the State Farm Recruitment team.

In creating and presenting your business proposal, you must remember to apply everything that you have learned about the career that you are applying to. You will have further details and instructions about this step during your application process.

Present your Licenses

Do not forget that before becoming an agent, you should have your insurance producer licenses (property & casualty and life/health) in your resident state. 

Why do you need an insurance producer license?

According to NAIC, people who wish to sell, solicit, or negotiate insurance in the United States must be licensed as a “producer”.  Having this license means that you are approved by the government to sell insurance.

Insurance agents are required to be licensed before selling insurance products or completing sales. If you operate without a license, you could face penalties or legal action.

How to get an insurance producer license?

To get your own license, you should follow the licensing process and requirements of the state where you live because each state has its own licensing requirements.

If you have no idea of how the process would be, you can consider asking for help from licensing centers like NIPR.

Once you are selected after completing the whole process and submitting all of the requirements, you will enter the 17-week training program mentioned above in this article.

How much do State Farm agency owners make? 

As per the records of Career Bliss a State Farm Agency owner usually earns $120 per hour or  $250,000 on average in a year which is 114% higher than the average for all Insurance Agency Owners.

State Farm agency owners start-up cost

Your start-up cost as a State Farm agency will vary based on your location,  business decisions, and cost of living.  To calculate and assess the initial investment with regards to your personal circumstances, you may consider contacting local agency leadership and agents to help you.

How much do Insurance Agents and Insurance Agency Owners at other insurance companies make? 

To help you easily compare State Farm Agents salaries, here’s the data on how much agents from other insurance companies are making:

Based on PayScale , agents at The Martin Agency could earn up to $68,000 a year while the American Family Insurance Group offers up to $150,000 annually.

For the Agency Owners, according to  Career Bliss, the highest-paid work for The Martin Agency and they are being paid $97,000 annually and the lowest paid Agency Owners work for America Family Insurance at $63,000 annually.


A State Farm Agent’s Salary really seems to be interesting topic for many, especially for those who want to step up to their career. Being a State Farm insurance agent is both challenging and rewarding.

Indeed, being a State Farm Agent would help you earn more than the regular salary of an 8 to 5 -hour job. 

In addition, it’s a great way of providing a valuable service to your community. 

So if you think being a State Farm Agent is a career that is suited for you, don’t miss your chance to go for it!