Buying an insurance agency: what 310+ agencies for sale ask, earn and leave out
Not a broker's pitch. Every US insurance agency for sale that we could count once, read for price, commission revenue, owner earnings, the carrier behind it, retention and why the owner is leaving.
The short answer
Buying an insurance agency means buying a renewal stream you do not fully control. The median US listing asks $675K on $222K of owner earnings (SDE), a 2.78x multiple on a 54.7% margin (Main Street Index, 310+ US listings, October 2026). That margin is the second-highest of any industry we track, and insurance agencies rank 34th of 118 industries on our Buyer Fit score.
Three things decide most deals. First, whether a carrier owns the brand: captive agencies (Allstate, Farmers and peers) ask 1.70x revenue but 2.56x SDE, agencies without a carrier brand 1.42x revenue but 3.08x SDE. Second, whether the revenue figure is commission or premium: 46 copies of one templated listing quote premium. Third, retention: after a 90% loan and an $80K salary the median agency leaves about $50K a year, and a 10% revenue loss after the sale wipes almost all of it.
Most of what ranks for this search is a trade association page, an M&A firm’s tips and a Reddit thread, none with listing data. This guide is built from the Main Street Index, BigIdeasDB’s census of 84,900+ businesses-for-sale listings from 29 marketplaces, counted once per business. It holds 320+ insurance agencies for sale; we analyse the 310+ in the US, priced in dollars on a seller’s discretionary earnings basis. SDE is owner earnings: profit before the owner’s own pay, interest and depreciation. Every figure is an asking price or a stated earnings figure, not a closing price. Medians below 30 listings are withheld.
The live listings sit on the insurance agency industry page. If you already have an agency in front of you, paste its price and SDE into the business price checker to see where it lands.
“Estimate 1.5-2.5 times the annual commission for cost. I paid 1.8x for mine at 1.4 million.”r/InsuranceAgent, reply to a first-time buyer
That reply sits in the Reddit thread Google ranks first for buying an insurance agency. Note the unit: commission, not profit. The listings work the same way, and that changes how you should read every price below.
Buying an insurance agency at a glance
Across 310+ US insurance agency listings in the Main Street Index (October 2026), the median agency has operated 13 years, employs three people and earns $281K of revenue per employee. The table is the one-screen version of this guide.
| Metric | Value | n | What it means for a buyer |
|---|---|---|---|
| Listings for sale (all countries) | 320+ | 320+ | 310+ in the US across 44 states |
| Median asking price | $675K | 306 | Middle half $396K to $1.1M |
| Median SDE | $222K | 104 | Middle half $154K to $405K |
| Median asking multiple | 2.78x SDE | 96 | Middle half 2.00x to 3.88x |
| Median revenue multiple (screened) | 1.66x revenue | 211 | The unit most agency buyers use |
| Median SDE margin | 54.7% | 85 | Second-highest of any industry |
| States SDE | 33.3% | 310+ | 57.8% across all USD listings |
| States revenue | 83.3% | 310+ | 69.9% across all USD listings |
| Names a captive carrier brand | 72.2% | 266 screened | Allstate 100+, Farmers 65 |
| Median employees | 3 | 170 | One-office businesses |
| Median annual rent | $18K | 92 | Small offices; few own real estate (4.8%) |
| States seller financing | 32.7% | 310+ | Above the 20.4% US average |
| Owner-operator, where role is stated | 92.0% | 113 | Hands-off is rare |
| Retirement as stated reason | 43.1% | 253 | 52.2% once one template is screened |
| Buyer Fit rank | 34 of 118 | 118 industries | Top third, held back by price |
Is owning an insurance agency profitable?
On margin, insurance is one of the best businesses for sale: the median US agency listing turns revenue into SDE at 54.7% (n=85, Main Street Index, October 2026), the same figure our most profitable small businesses study ranks second of every industry. Commission has almost no cost of goods. The costs are licensed staff, a small office and the owner’s own selling time.
It ranks 34th of 118 US industries on Main Street Index Buyer Fit (57.6 of 100). The score weighs earnings yield, affordability, margin, durability, healthy exits, supply, productivity, seller financing and real estate. Insurance scores near the top on margin, seller financing and revenue per employee, and near the bottom on affordability: a $675K median ask is a big cheque for a three-person office. Healthy exits are high too, with 98.8% of stated reasons free of distress.
“We are moving to an s corp this year so I am now on salary. Still gonna do 50% margins so I guess we doing alright?”r/InsuranceAgent, an agency owner on margins
The catch is that margin is not the same as safety. A valuation analyst in the same thread pushed back on how small books are priced:
“No agency is valued on seller discretionary earnings (SDE). It's a metric that is shown but valuation is done assuming all necessary payroll.”r/InsuranceAgent, valuation thread
- Good investment if you hold or can get the licences, you will sell and service the book yourself for the first renewal cycle, and the commission statements show stable retention.
- Poor investment if you want passive income in year one, the book depends on the seller’s personal relationships, or the carrier can change your commission and who you may sell to.
Still choosing an industry? Our best businesses to buy ranking and the what business should I start decision table compare insurance with 115+ others on the same data.
How much does it cost to buy an insurance agency?
The median US insurance agency listing asks $675K, with the middle half between $396K and $1.1M (n=306 with a price, Main Street Index, October 2026). One in three asks between $500K and $1M. The spread is wide because the industry holds two different products: a single captive office and a multi-carrier independent agency.
| Asking price | Listings | Share | Typical agency |
|---|---|---|---|
| Under $250K | 42 | 16.2% | Small captive books, often Farmers |
| $250K to $500K | 51 | 19.6% | One office, one or two staff |
| $500K to $1M | 86 | 33.1% | The core of the market |
| $1M to $2M | 52 | 20.0% | Large captive offices, Allstate-heavy |
| $2M and up | 29 | 11.2% | Multi-office or commercial books |
The cash you need is smaller than the price. With an SBA-style loan at 10% down you would put in about $68K on the median ask, plus closing costs and working capital. One agency M&A firm in the top results sets a stricter rule of thumb, 20% to 25% of the price in cash, so $200K buys an $800K to $1M agency. Our down payment guide covers what lenders accept across all industries, and the hidden costs of buying a business lists the fees that sit on top.
“Minimum 10% cash to start + start up cash”r/InsuranceAgent, an agency buyer
State matters. Among screened listings, Texas has the most (41) at a median $799K ask; California (35) asks $361.5K. No other state has 30 listings, so we withhold the rest. For any other cut, the listings view filters by state.
Insurance agencies are priced on revenue, not SDE
Only 33.3% of US insurance agency listings state SDE, against 57.8% across all 50,100+ USD listings in the Main Street Index, while 83.3% state revenue (69.9% overall). That 50-point gap between showing revenue and showing SDE is the widest of 102 US industries with 100+ listings: sellers show the top line and hide the bottom one. They do it because the trade prices agencies on commission revenue.
Read on revenue, the median screened listing asks 1.66x stated revenue (n=211). Valuation firms that rank for the question quote a rule of thumb of 1x to 1.5x earned commission, and the Reddit buyers above paid 1.1x to 1.8x. Listings ask at the top of that range, which is normal for asking prices.
| Cut | Multiple | n | Note |
|---|---|---|---|
| Asking price / SDE, all | 2.78x | 96 | Above the 2.63x median of 27,500+ US listings |
| SDE $150K to $300K | 2.37x | 43 | The typical one-office agency |
| SDE $300K and up | 3.32x | 31 | Bigger books earn a premium |
| SDE under $150K | Withheld | 24 | Below n=30 |
| Asking price / revenue, screened | 1.66x | 211 | Includes some premium-quoted rows |
| Asking price / revenue, ratio 0.5x or more | 1.78x | 179 | Drops 32 rows that look like premium |
Two practical rules follow. When a listing hides SDE, rebuild it from commission statements and payroll before you compare it with the 2.78x median. And when a listing shows revenue, ask what kind: agency commission, written premium, or commission plus contingent bonuses that may not repeat. Our small business valuation guide covers SDE add-backs; for agencies, strip any bonus the carrier can cancel.
“Policies on the books and revenue coming in isn't as important as overall profitability. A business can absolutely be bringing in $1million a year in revenue and be losing money.”r/InsuranceAgent, buyer due diligence advice
Captive vs independent: what you actually own
Captive agencies ask more per dollar of revenue (1.70x, n=37) but less per dollar of SDE (2.56x, n=47) than agencies without a carrier brand (1.42x revenue, n=45; 3.08x SDE, n=51), because captive listings report a 65.0% margin against 50.0% (Main Street Index, October 2026). That split is the clearest finding in this data.
The NAIC defines the two: a captive agent sells one insurance company’s policies, an independent agent can sell policies from many. For a buyer the difference is ownership. A captive agency is closer to a franchise: the carrier supplies the brand, the leads and the software, approves the buyer and sets the commission. That is why captive SDE is high (fewer costs) and the SDE multiple is low (less control).
| Metric | Captive brand named | No carrier brand |
|---|---|---|
| Listings | 190+ | 74 |
| Median ask (with SDE) | $708K (n=47) | $580K (n=51) |
| Median SDE | $250K (n=47) | $208.5K (n=51) |
| Asking price / SDE | 2.56x (n=47) | 3.08x (n=51) |
| Asking price / revenue | 1.70x (n=37) | 1.42x (n=45) |
| SDE margin | 65.0% (n=37) | 50.0% (n=45) |
| States SDE at all | 26.6% | 71.6% |
| Seller financing offered | 41.1% | 31.1% |
| Mentions retention | 63.5% | 36.5% |
| Median staff | 3 (n=125) | 2 (n=46) |
Agents who have worked both sides describe the trade-off in the same terms. The captive carrier makes the phone ring; the independent owns the book.
“as an Indy you 100% own your book of business that you can sell as you please. Only some captive companies give you ownership but then they can and will dictate to who you can sell your business to.”r/InsuranceAgent, captive vs independent thread
“Captives don't realize the amount of marketing efforts (and dollars) went into making their phone ring. ...until they go indie.”r/InsuranceAgent, same thread
“Buying an independent book is hands down the best way to own an agency.”r/InsuranceAgent, same thread
A captive agent in that thread added that their carrier would buy the book back at 1.25x annual renewals if they left. That is a floor, and a cap. Ask any captive seller for the carrier’s transfer and buy-back terms in writing before you price the deal. Only 25 of the 74 non-captive listings say outright that they are independent or multi-carrier, so treat the right-hand column as “no carrier brand named” and confirm appointments yourself. The broader trade-off is covered in our franchise vs independent business comparison.
Allstate vs Farmers: two very different listings
Allstate agency listings ask a median $1.0M (n=101) on 1.95x stated revenue (n=82), while Farmers agency listings ask $265K (n=61) on 1.34x (n=39), according to the Main Street Index in October 2026. Together they make up 160+ of the 260+ screened US listings, so “how much does it cost to buy an Allstate agency” has a real answer here.
| Metric | Allstate listings | Farmers listings | No carrier brand |
|---|---|---|---|
| Listings | 100+ | 65 | 74 |
| Median ask | $1.0M (n=101) | $265K (n=61) | $594.5K (n=72) |
| Middle half of asks | $729K to $1.5M | $160K to $420K | $350K to $1.2M |
| Median stated revenue | $539K (n=86) | $213K (n=40) | $438K (n=64) |
| Asking price / revenue | 1.95x (n=82) | 1.34x (n=39) | 1.56x (n=55) |
| Seller financing offered | 64.4% | 13.8% | 31.1% |
| States SDE | 20.8% | 40.0% | 71.6% |
Allstate listings are bigger books priced high on revenue, and most of them offer seller financing, which suggests the carrier’s own transfer process shapes how they are marketed. Farmers listings are small and cheap per revenue dollar. Agents on the Farmers subreddit describe why:
“They are wanting larger, stronger agencies. That has been stated in a company PowerPoint given to me. Cut the small agencies.”r/farmersinsurance
“Us little guys lose their shirts with .5% taken off commission.”r/farmersinsurance, a small agency owner
Neither price is good or bad on its own. A cheap Farmers book can be a fair entry if you plan to grow it; an Allstate office at 1.95x revenue needs strong retention to pay back. In both cases, Allstate hides SDE on four in five listings, so ask for it. State Farm does not appear by name in any US listing in our data, so we cannot price it.
The 46 listings that quote premium, not revenue
One description template appears on 46 US insurance agency listings across 15 states, every one quoting written premium as revenue (median $4.2M), stating no SDE and asking a median $640K, about 16 cents per dollar of premium (Main Street Index, October 2026). It is 14.7% of the industry.
Each copy describes a branded agency with a book of recurring premium renewals, a trained staff and an office, says no insurance experience is necessary, mentions SBA funding and says the agency must be operated under one carrier. 45 of the 46 give a career change as the reason for selling. Whatever their merits, they are not comparable with the rest of the market, so we screen them out of every revenue multiple and every split on this page.
Premium and commission are different units. A Reddit agent valuing a small book put it simply:
“$67,000 in written premium (estimate $10,000 in revenue)”r/InsuranceAgent, valuation thread
At roughly 10% to 15% commission, $4.2M of premium is about $420K to $630K of agency revenue, so a $640K ask is close to 1x to 1.5x commission. That can be fair. The problem is comparison: put a premium figure next to a commission figure and the agency looks ten times cheaper than it is. If revenue looks huge next to the price, ask which it is. Our mistakes when buying a business guide lists more traps of this kind.
How much you make after the loan
After a 90% loan and an $80K salary, the median US insurance agency listing leaves about $50K a year on top of that salary, and 61.2% of listings clear the 1.25x debt coverage lenders look for (Main Street Index, n=98 with price and SDE, October 2026). No equipment to replace, a median $18K of rent and a 54.7% margin keep the cushion wide.
| Median per listing | As listed | After a 10% revenue loss |
|---|---|---|
| Annual loan payment | $91K | $91K |
| Cash left after salary and loan | $50K | $2K |
| Clear 1.25x debt coverage, all | 61.2% | 32.9% |
| Clear 1.25x, captive brand named | 66.0% (n=47) | 43.2% (n=37) |
| Clear 1.25x, no carrier brand | 56.9% (n=51) | 24.4% (n=45) |
The right-hand column is the reason insurance is not a passive buy. Because almost every dollar of lost commission falls straight to SDE, a 10% dip in revenue cuts the median buyer’s cushion from $50K to about $2K and halves the share of agencies that pass a lender’s test. Independent agencies, priced higher on SDE, are hit hardest. Our how much is a business worth guide shows the same math for other industries.
“An agency that can send you $300-400k in passive owner earnings would likely need to be a $700k to $1M annual revenue book. Depends on the lines I suppose. That would likely cost $1.5-2.5M.”r/InsuranceAgent, reply to a first-time buyer
Three ways to close the gap: tie 10% to 20% of the price to an earn-out on one-year retention, put a seller note on standby, or keep the selling role yourself so the salary line is real work rather than a hire.
Retention decides the deal
Only 52 US insurance agency listings state a retention rate, with a median of 84% (Main Street Index, October 2026), so most buyers have to ask. Retention is mentioned in 63.5% of captive listings and 36.5% of the rest, usually as an adjective rather than a number.
Retention carries more weight here than in most service businesses because the revenue is the renewals: in the debt model above, a 10% revenue loss nearly halves the share of agencies that pass. When the owner leaves, clients who stayed through rate increases out of personal loyalty can leave too. The Big “I” independent agents association also warns that a retiring owner’s clients are often ageing out with them.
“try identifying accounts that will leave if your uncle leaves. How many accounts have been around for many years and stuck through rate increases just because they liked your uncle. If you really want to buy it, come up with a game plan to replace 20% of the book”r/InsuranceAgent, an underwriter on buying a family agency
“if you pay 2x-2.5x for a book transfer you'll likely lose money unless you have great retention and aggressively pay off any loans fast.”r/InsuranceAgent, valuation thread
What to request: policy-count and premium retention for three years, split by personal and commercial lines; commission by carrier; the 20 largest accounts and their tenure; and a list of clients who deal only with the seller. 50.0% of listings describe recurring contracts, but a renewal is not a contract: each one is a decision the client makes again. Property management books carry the same risk, and our property management company buying guide shows why a small book should be valued as contracts you must win over again.
Who does the work: owner-operator by default
Of the 113 US insurance agency listings that state the owner’s role, 92.0% describe an owner-operator and only 5.3% are hands-off (absentee or semi-absentee; 8.0% with manager-run included), according to the Main Street Index in October 2026. Across 15,300+ USD listings that state a role, 53.1% are owner-operated. That 92.0% is the highest owner-operator share of 95 US industries with 30+ listings stating a role.
The reason is licensing and selling. The owner is usually the licensed principal and the best producer. Staff are customer service representatives who handle renewals, endorsements and claims calls. The median agency has three people.
“IME you need minimum one trained customer service agent per million in premium (I have 4)”r/InsuranceAgent, an agency owner
“It will be impossible to retain a book of business of the size you describe with 1 employee and hands off ownership.”r/InsuranceAgent, reply to a buyer seeking a hands-off agency
If you want less owner time, the easiest small businesses to run study ranks industries by hands-off share, and insurance is not near the top. A middle path from the same thread: buy a stake in an agency where the owner stays on and teaches you, then buy them out.
Licensing and buying with no experience
You will need a state insurance licence for each line you sell, and listings name it: 36 US agency listings flag a licensed professional as the target buyer, and licence names such as the Florida 2-20 General Lines, the 2-15, Texas General Lines and California Property and Casualty appear by name (Main Street Index, October 2026). Licensing runs through each state insurance department, which the NAIC also points consumers to for checking an agent.
Can you buy with no insurance experience? 10.9% of captive listings say no experience is needed, against 2.7% of the rest, and every copy of the premium template says it. Captive carriers run training and approve buyers, which is why the claim clusters there. In practice the buyer still has to pass the exam, get appointed and sell.
“Independent is the only way, BUT starting from scratch I'd probably go captive.”r/InsuranceAgent, captive vs independent thread
If you are new to the industry, our guide to using AI to analyze a business for sale shows how to pressure-test a listing you do not fully understand, and the disadvantages of buying an existing business covers the inherited-problem risk.
Seller financing and SBA loans
32.7% of US insurance agency listings say seller financing is offered, against 20.4% of all US listings (Main Street Index, October 2026). It is 41.1% for captive agencies, 31.1% for agencies without a carrier brand, and 64.4% for Allstate listings. Only three listings refuse it outright.
SBA is mentioned in 16.9% of listings, mostly by the premium template (89.1% of its copies). The SBA 7(a) program can fund a change of ownership; goodwill-heavy deals like agencies usually get a 10-year term. Specialist commission lenders also finance agency purchases, and one M&A firm in the top results notes that only a handful of lenders do this at all, so line up financing before you make an offer.
“You'll pretty much get a 10 year variable rate loan or you won't get one”r/InsuranceAgent, an agency buyer
“He would sell it to me for about a 1.1x and owner finance the rest with a 25% down.”r/InsuranceAgent, a producer buying a family agency
Use the seller note to share retention risk: a note that adjusts if first-year retention falls below an agreed level is more useful than a lower price. Our seller financing guide has the note terms that show up most across industries, and the letter of intent guide shows where to write the earn-out in.
Why owners sell insurance agencies
Of 253 US insurance agency listings with a stated reason, 43.1% say retirement, 30.0% a career change and 15.8% other business interests (Main Street Index, October 2026). Across all US listings the career-change share is 3.3%. Insurance is the industry where people leave the trade, not just retire from it.
Most of that comes from one place. 45 of the 46 premium-template copies give a career change. With the template screened, career change is still 15.0% of 207 stated reasons, over four times the all-industry rate, and retirement rises to 52.2%. The split by type is sharp: 19.5% of captive sellers (n=149) cite a career change against 3.4% of sellers without a carrier brand (n=58), who mostly retire (53.4%).
“Owner is pursuing opportunities outside of insurance.”business-for-sale listing
“The Seller has had the Agency for 40 years and would like to retire”business-for-sale listing
“Owner health; unable to hire and retain sales producers”business-for-sale listing
A career-change seller is usually younger and leaving a captive system; ask why, and whether carrier changes to commission or territory are part of it. A retiring seller often owns a book with older clients. Our buying from a retiring owner guide and the cross-industry why owners sell study cover both.
Where to find an insurance agency for sale
The Main Street Index holds 310+ US insurance agency listings from marketplaces, and 108 of them name no broker, while 85 carry a franchise-resale flag, 70 of them captive offices (Main Street Index, October 2026). Listings are only part of the market: many independent agencies sell privately to another agency or a consolidator before they are ever listed.
“Target people are on the verge of retiring”r/InsuranceAgent, on finding an agency partner
Three channels work: listings (filter the Main Street Index listings by industry and state), carrier transfer programs for captive offices, and direct outreach to agency owners near retirement through state associations. Our how to find a business to buy guide covers off-market outreach, and buying a business with the Main Street Index walks through the filters. One M&A firm says you may look at 15 agencies to find one that fits, and that professional buyers move fast.
Expect competition. Agencies with more than about $1M of EBITDA attract private equity buyers who pay far higher multiples, which is a different market from the $222K median SDE here.
“It's $1M+ EBITDA. That's a threshold for a lot of PE buyers so it's a different market segment.”r/InsuranceAgent, valuation thread
Insurance agency due diligence checklist
Eight checks cover what is specific to insurance, built from the gaps in 310+ US listings (Main Street Index, October 2026): two in three hide SDE, 46 quote premium as revenue and only 52 state a retention rate. Run the general due diligence checklist as well.
- Get the commission statements, not just the P&L. Ask for 36 months of carrier commission statements and tax returns. Separate new business, renewal and contingent or bonus commission. Value only what renews.
- Confirm what you are allowed to own. For a captive agency, get the carrier's agency transfer terms in writing: buyer approval, what the carrier pays if you leave, and who you may sell to later. For an independent, list every carrier appointment and whether it transfers.
- Measure retention by line and by carrier. Get policy-count retention for three years, split by personal and commercial lines. Flag any carrier above 40% of premium and any client above 5% of commission.
- Check the revenue is commission, not premium. Ask whether the revenue figure is written premium or agency commission. A listing with $4M of revenue and a $600K ask is usually quoting premium.
- Map who services the book. Count licensed customer service staff per $1M of premium, check who answers renewals, and get non-piracy agreements signed by producers before close.
- Buy assets and cover E&O. Most agency deals are asset purchases. If it is a stock sale, require the seller's errors and omissions tail coverage.
- Stress-test the loan for a retention dip. Model debt service with your salary and a 10% revenue loss in year one. Keep 1.25x coverage after the dip, or tie part of the price to an earn-out.
- Plan the handover with the seller. Agree how long the seller stays, how clients are told, and that the seller signs a non-solicitation agreement. Retention is won in the first renewal cycle.
For the financial side, the due diligence help page shows how to compare an agency with its peers in the index, and the Big “I” buyer page covers E&O tail coverage and non-piracy agreements from the trade side. Most deals are asset purchases, which leaves the seller’s past errors with the seller.
“Ask for his last 5 years of business tax returns. Is the agency trending up? trending down?”r/InsuranceAgent, due diligence advice
Thinking of starting an agency instead?
Starting is cheaper and slower: the median listing asks $675K for a book with $222K of SDE, and a new agency starts with neither (Main Street Index, October 2026). Most owners in the forums started as producers, built a book and then opened or bought.
“I only started this agency with farmers because literally there was no barrier to entry. Start a small business with franchise like marketing and name recognition but with no real franchise costs.”r/farmersinsurance, a small captive agency owner
If you are comparing buying with starting across industries, our how to buy a business guide and the best business to start or buy by budget table put insurance next to cheaper options. With little capital, see how to start a business with no money. Other owner-operated buys with repeat revenue to compare are pool routes, FedEx routes and auto repair shops.
Methodology and limits
All queries ran read-only against the Main Street Index on October 5, 2026; the universe is 320+ insurance agency listings counted once per business, and benchmarks use the 310+ US listings in USD on an SDE basis. Multiples are asking price divided by stated SDE or stated revenue. Percentiles are withheld below n=30. Headline figures (ask, SDE, multiple, margin, rank) match the industry benchmark; splits are computed at listing level and can differ slightly.
The premium template is one description repeated on 46 listings in 15 states; we screen it from every revenue multiple and split. Captive status is a keyword match on carrier names and the words captive or exclusive agency in the listing text; the rest is “no carrier brand named”, not proven independent. Owner role, SBA status, revenue model and licences come from a description model that passed an accuracy gate; seller financing comes from site labels. The debt model assumes 10% down, 10.5% fixed over 10 years on the asking price and an $80K salary; the retention case subtracts 10% of stated revenue from SDE. Analysts can reproduce each cut through the Main Street Index MCP tools, set up with the MCP setup guide, or the Main Street Index documentation.
Five limits matter most:
- Asking, not closing. Every price and multiple is an asking figure. Some listings never sell.
- Stated, not verified. SDE, revenue, retention and owner role are what the listing says. Two in three listings hide SDE.
- Revenue units are mixed. Some listings quote premium, not commission. We screen one template and show a cut without ratios below 0.5x, but others may remain.
- Captive is a keyword cut. A listing may omit its carrier. Only 25 non-captive listings say they are independent, so we do not report an “independent only” multiple.
- US only. UK and other insurance agency listings have fewer than 30 with price and earnings, so their medians are withheld. Licensing and carrier rules vary by state and carrier; nothing here is legal advice.
Data sources and limitations
Six sources sit behind this page, from first-party listings to live Reddit threads and regulator guidance, verified October 5, 2026.
| Source | Used for | Size | Limitation |
|---|---|---|---|
| Main Street Index listings | Prices, SDE, revenue, multiples, bands, states, captive and brand splits, premium template screen | 320+ listings, 310+ US | Asking prices; 66.7% of US listings hide SDE |
| Main Street buyer and deal layers | Owner role, SBA, licences, revenue model, seller financing, debt model inputs | 290+ US buyer rows; 113 state the role | Model-read from text; most listings are silent |
| Main Street Buyer Fit and motivation | Industry rank, margin, reasons for selling | 118 ranked industries; 253 stated reasons | Asking economics; reasons are stated, not verified |
| Live Reddit threads | Buyer, owner, underwriter and analyst quotes | 7 threads in r/InsuranceAgent, r/farmersinsurance and r/AllState | Self-selected commenters; anonymized |
| Google SERP and People Also Ask | Question coverage, rules of thumb in ranking pages | 5 SERPs, 17 PAA questions | US market; Trends was rate-limited and not used |
| NAIC, SBA and the Big “I” | Captive vs independent definitions, 7(a) loans, E&O and asset purchase practice | Regulator, agency and trade association pages | General guidance; rates and carrier terms vary |
Check any insurance agency against its peers before you offer
The Main Street Index puts 78,500+ real businesses for sale behind every decision: insurance agency multiples on SDE and revenue, captive vs independent, seller financing and the stated reason for selling, plus the same view for 130+ other industries. Browse every industry on the industries page and compare plans on pricing. Get 20% off Pro Lifetime with code SAVE20.
Open the buyer view →Want a custom cut, such as commercial-lines agencies in one state? Request custom data. See source coverage on the coverage page.
Frequently asked questions
Is buying an insurance agency a good investment?
It can be, if the book renews after you take over. Across 310+ US insurance agency listings (Main Street Index, October 2026), the median agency asks $675K on $222K of owner earnings (SDE), a 2.78x multiple with a 54.7% SDE margin, the second-highest margin of any industry we track. Insurance agencies rank 34th of 118 industries on Buyer Fit. The risk is retention: if 10% of revenue walks out after the sale, the share of listings that clear a 1.25x debt test falls from 61.2% to 32.9%.
How much does it cost to buy an insurance agency?
The median US listing asks $675K (middle half $396K to $1.1M, n=306 with a price). One in three asks $500K to $1M. Farmers agencies are the cheapest group at a median $265K (n=61) and Allstate agencies the most expensive at $1.0M (n=101). With an SBA-style loan at 10% down you need about $68K in cash for the median ask, plus closing costs and working capital.
How much does an independent insurance agency sell for?
Agencies that do not name a carrier brand ask a median 1.42x revenue and 3.08x SDE (n=51 with price and SDE). That is more per dollar of earnings than captive agencies (2.56x SDE) but less per dollar of revenue (1.42x vs 1.70x), because independents run thinner margins (50.0% vs 65.0%) and own their book outright. Forum buyers quote 1.5x to 2.5x commission for independent books. These are asking prices, not closed deals.
How much can you make if you own an insurance agency?
The median listing states $222K of SDE, which is profit before the owner's pay and any loan. With 10% down, the rest at 10.5% over 10 years and an $80K salary, the median listing leaves about $50K a year on top of that salary (n=98). If 10% of revenue is lost after the sale, that falls to about $2K. A buyer on Reddit estimated that $300K to $400K of owner income needs a $700K to $1M revenue book.
Is owning an insurance agency profitable?
On margin, yes. The median US agency listing reports an SDE margin of 54.7% (n=85), second only to pool service routes (75.4%) in our most profitable small businesses study. Captive agencies report 65.0% (n=37) and agencies without a carrier brand 50.0% (n=45). Margin is high because commission revenue has almost no cost of goods; the expense is staff, rent (median $18K a year) and the owner's own selling time.
What is the multiple for an insurance agency book of business?
Listings price agencies on revenue first. The median screened US listing asks 1.66x stated revenue (n=211) and 2.78x SDE (n=96). Valuation firms quote 1x to 1.5x earned commission as a rule of thumb, and Reddit buyers report paying 1.1x to 1.8x commission. Larger agencies with $300K+ of SDE ask 3.32x (n=31) against 2.37x for $150K to $300K (n=43).
What is the difference between a captive and an independent insurance agency?
A captive agent sells one insurance company's policies; an independent agent can place policies with many companies, according to the NAIC. For a buyer the difference is what you own. Agents on Reddit say independents own their book and can sell it to anyone, while captive carriers can dictate who buys an agency. In our data 190+ of 260+ screened US listings name a captive brand, mostly Allstate and Farmers.
How much does it cost to buy an Allstate agency?
Allstate agency listings ask a median $1.0M (middle half $729K to $1.5M, n=101) on a median $539K of stated revenue, or 1.95x revenue (n=82). Only 20.8% of them state SDE, so earnings are hard to compare. 64.4% say seller financing is offered, the highest share of any group in the industry. The carrier must approve the buyer.
Can you buy an insurance agency with no experience?
Yes, but you must get licensed, and captive carriers approve the buyer. 10.9% of captive listings say no insurance experience is needed, and all 46 copies of one templated listing say it, but most agencies expect the owner to sell. 92.0% of the listings that state the owner's role describe an owner-operator. A first-time buyer on Reddit was told a $300K to $400K passive income target with one employee was not realistic.
Is it hard to become licensed to sell insurance?
Licensing is set by each state insurance department, usually a pre-licensing course and an exam per line (property and casualty, life and health). Listings name the licence they expect: Florida 2-20 or 2-15, Texas General Lines and California Property and Casualty appear by name. Plan for it before closing, because carriers will not appoint an unlicensed owner and the commissions cannot be paid to you.
How do I start my own insurance agency with no money?
Most people start as a producer, build a book on commission and then buy or open an agency. Buying needs real cash: about 10% down on an SBA-style loan, or 20% to 25% of the price according to one agency M&A firm. Captive carrier programs and cluster networks lower the start-up cost of a new agency, but a new agency has no renewals to finance against. If you have no capital, our guide to starting a business with no money covers cheaper routes.
Why do so many insurance agents quit?
Commission-only income and slow book building are the usual reasons agents give on Reddit. It shows up in the listings too: 15.0% of screened US agency sellers say they are changing careers, against 3.3% of all US business sellers. Among captive agencies it is 19.5% (n=149), against 3.4% for agencies without a carrier brand (n=58), which mostly sell to retire.
Will the seller finance an insurance agency purchase?
Often. 32.7% of US insurance agency listings say seller financing is offered, above the 20.4% average for all US listings. It is 41.1% for captive agencies and 64.4% for Allstate listings. A seller note on standby also helps an SBA lender, and an earn-out tied to retention protects you if clients leave with the seller.
BigIdeasDB Research. (2026). Buying an insurance agency: what 310+ agencies for sale ask, earn and leave out. BigIdeasDB. Retrieved from https://bigideasdb.com/buying-an-insurance-agency