How much do insurance agents make per policy?

Agents earn a percentage of the policy premium, set by the insurer. For auto and home insurance, first-year commissions typically run 5% to 15% of the premium, dropping to 2% to 5% at renewal. Life insurance pays far more up front: often 30% to 80% of the first-year premium on term policies and roughly 100% or more on permanent policies, with renewals of about 1% to 2%. A single auto policy might earn an independent agent a few hundred dollars in year one and a much smaller amount on each renewal.