How to Become a Car Insurance Agent in India? (Complete Guide 2025)

 

The demand for car insurance agents in India is growing rapidly as vehicle ownership continues to rise and motor insurance remains mandatory under the Motor Vehicles Act. Whether you're a student, a working professional seeking extra income, or someone looking for a full-time career, becoming a car insurance agent is one of the most rewarding and high-growth opportunities in India.

In this complete guide, you will learn how to become a car insurance agent in India, eligibility criteria, documentation, commission structure, and step-by-step process to start your career in 2025.

Who Is a Car Insurance Agent?

A car insurance agent is a certified professional authorized to sell car insurance policies to customers. They help individuals choose the right coverage, renew policies, process claims, and provide after-sales support.

Agents can work with:

• General Insurance Companies
• Brokers
• POSP (Point of Sales Person) Platforms
• Insurance Aggregators

This role is flexible, highly profitable, and ideal for people with good communication skills.

Why Become a Car Insurance Agent in 2025?

Becoming a car insurance agent in India offers incredible benefits, including:

• High Demand & Evergreen Career

Motor insurance is compulsory for every vehicle owner, making it the most sold insurance product in India.

• Unlimited Earning Potential

Agents earn attractive commissions on every policy sold—new and renewal. With thousands of vehicles added every day, the income potential is extremely high.

•  Flexible Working Hours

You can work full-time or part-time without any restrictions.

•  Low Investment & Quick Start

You only need basic documents and a short certification to start earning.

•  Work From Anywhere

Most insurers now offer digital onboarding, e-KYC and online policy issuance.

Eligibility to Become a Car Insurance Agent in India

To start your career as a car insurance agent, you must meet the minimal eligibility criteria defined by IRDAI:

1. Age Requirement

You must be at least 18 years old.

2. Educational Qualification

You must have passed Class 10th (Matriculation) from a recognized board.

3. Mandatory IRDAI Training

A 15-hour training conducted by the insurance company or broker is required.

4. IRDAI Exam

After training, candidates must pass the IRDAI exam to receive a license.

Documents Required to Become a Car Insurance Agent

You need the following documents for registration:

• Aadhaar Card
• PAN Card
• Passport-size Photographs
• Class 10th Marksheet
• Bank Account Details
• Address Proof

Once verified, you can proceed with training and licensing.

Step-by-Step Process: How to Become a Car Insurance Agent in India

Here’s the complete process simplified:

Step 1: Choose an Insurance Company or Broker

Start by selecting a reputable insurer or licensed broker. Some people prefer POSP models offered by aggregators because the process is quick, fully digital, and beginner-friendly.

Step 2: Complete the IRDAI Mandatory Training

After registration, you will undergo a 15-hour mandatory IRDAI training.
This training covers:

• Basic insurance concepts
• Motor insurance types
• Policy issuance
• Underwriting basics
• Customer handling
• Claims process

Training is available online and offline.

Step 3: Take the IRDAI Licensing Exam

Once training is completed, you must appear for the IRDAI exam.
The exam checks your:

• Understanding of insurance
• Legal responsibilities
• Product knowledge
• Sales ethics

It is a simple test, and most candidates pass easily with basic preparation.

Step 4: Get Your License Issued

After passing the exam, IRDAI issues your Insurance Agent License, which is valid across India.
With this license, you become authorized to sell:

• Car insurance
• Two-wheeler insurance
• Commercial vehicle insurance

Step 5: Start Selling Car Insurance Policies

Once you have your license, you can begin selling immediately.
Your insurer or broker will provide:

• A digital portal
• Sales dashboard
• Quotation tools
• Product training
• Marketing support

Everything can be managed through a smartphone.

Types of Car Insurance Policies You Can Sell

As a certified agent, you can sell:

1. Third-Party Liability Insurance

Mandatory for all vehicles.

2. Comprehensive Car Insurance

Covers own damage + third-party.

3. Standalone Own Damage Policy

Available for vehicles with an active third-party cover.

4. Add-Ons / Riders

You can upsell add-ons such as:

• Zero Depreciation
• Engine Protection
• Roadside Assistance
• Return to Invoice
• Consumables Cover

More add-on sales mean higher commissions.

How Much Can a Car Insurance Agent Earn in India?

Earnings depend on the number of policies you sell.
Typical commission structure:

• New Policy: 15–25%
• Renewal Policy: 10–15%

If you sell even 10–15 car policies a month + renewals, you can easily earn ₹30,000 to ₹1,00,000+ per month.

Experienced agents earn much more through:

·       Corporate accounts

·       Fleet insurance

·       Commercial vehicle clients

Skills Needed to Become a Successful Car Insurance Agent

You don’t need technical knowledge, but these skills help:

• Good communication
• Basic computer/smartphone skills
• Understanding customer needs
• Relationship building
• Active follow-up
• Basic product knowledge

Most of these skills can be learned through training.

Tips to Grow Your Career as a Car Insurance Agent

1. Build a Strong Local Network

Target car owners, RTO agents, mechanics, and car dealers.

2. Use Digital Marketing

Promote your services through WhatsApp, Facebook, and Google listings.

3. Maintain Customer Satisfaction

Good service ensures repeat renewals and referrals.

4. Stay Updated with Policy Changes

Customers trust knowledgeable agents.

5. Partner with Multiple Insurers

More products = more options = more sales.

Conclusion

If you're looking for a stable, flexible, and high-income career, understanding how to become a car insurance agent in India is the first step toward your success. The entire process is simple and can be completed quickly with minimal investment. With growing demand, digital policies, and attractive commissions, 2025 is the perfect time to start your journey as a motor insurance professional.

Frequently Asked Questions

Q.1. What is the minimum qualification required to become a car insurance agent in India?

You must have passed Class 10th from a recognized board to become a car insurance agent in India.

Q.2. What is the age limit to apply for a car insurance agent license?

You must be at least 18 years old. There is no upper age limit, so anyone can start this career anytime.

Q.3. Is the IRDAI exam compulsory for becoming a car insurance agent?

Yes. Passing the IRDAI licensing exam is mandatory after completing the 15-hour training.

Q.4. How long does it take to become a licensed car insurance agent?

The entire process—including registration, training, exam, and license approval—usually takes 7 to 15 days.

Q.5. Can I work part-time as a car insurance agent?

Yes. Many agents work part-time and earn a good income through commissions, making it a flexible career option.