Career in Insurance provides an opportunity for high income earning, flexibility, and the opportunity to help people protect what matters most. In this blog, you will get to know every step of becoming a licensed insurance agent in the Texas.
Why Become an Insurance Agent in Texas?
Texas has the second-largest insurance market in the United States, which create job opportunities for new agents. According to ZipRecruiter, insurance agents in Texas earn between $41,500 to $71,700 annually, with top performers in the 90th percentile making over $92,000, and the highest earners reaching $113,000 or more through commissions.
Types of Insurance Licenses in Texas
It is important to understand the different types of insurance licenses available:
Life, Accident, and Health Insurance:
It covers life insurance policies, health insurance plans, disability insurance, and long-term care insurance.
Property and Casualty Insurance:
It includes auto insurance, homeowners insurance, commercial property insurance, and liability coverage.
Personal Lines:
Property lines is a subset of property and casualty that focuses on individual consumers rather than businesses.
General Lines:
General Lines allows you to sell personal and commercial property and casualty insurance. Most agents pursue either life and health licensing, property and casualty licensing, or both to maximize their opportunities.
Step-by-Step Guide to Getting Your Texas Insurance License
Step 1: Meet the Basic Requirements
To obtain an insurance license in Texas, you must:
- Be at least 18 years old
- Be a U.S. citizen or legal resident
- Have a high school diploma or GED
- Pass a background check
- Complete required pre-licensing education
- Pass the state licensing exam
Texas does not require a college degree, making this career accessible to anyone ready for a professional opportunity.
Step 2: Complete Pre-Licensing Education
Texas requires pre-licensing education before taking the licensing exam:
Life, Accident, and Health: 20 hours of approved coursework
Property and Casualty: 40 hours of coursework (20 hours for personal lines only)
If you’re planning to pursue a Property and Casualty license, our comprehensive guide covers everything you need to know about getting your Property and Casualty license in Texas, including specific exam tips and career opportunities in this field.
Step 3: Apply for Your License Through NIPR
Texas uses the National Insurance Producer Registry (NIPR) for applications:
- Create an account at nipr.com
- Complete the online application
- Pay the application fee (~$50)
- Submit fingerprints for background check (~$40)
- Provide proof of pre-licensing education
- The process takes 15-30 minutes online.
Step 4: Schedule and Pass Your Licensing Exam
Schedule your exam through Pearson VUE after application approval.
Exam Details:
- 150 questions, 3 hours
- Passing score: 70% or higher
- Cost: $43 per exam
Step 5: Study for the Exam
- Dedicate 20-40 hours to studying. Key strategies include:
- Using multiple study materials (textbooks, online courses, practice exams)
- Taking practice tests until you consistently score 80%+
- Focusing on Texas-specific regulations
Step 6: Get Appointed by an Insurance Company
After passing your exam, get appointed by an insurance company to sell their products. Choose between:
Captive agent:
Represent one company (State Farm, Allstate, Farmers)
Independent agent:
Represent multiple carriers
Step 7: Complete Continuing Education Requirements
Maintain your license with continuing education every two years. 30 hours total (including 2 hours of ethics) for each license type
Costs of Becoming an Insurance Agent in Texas
Budget for these expenses is as follows:
- Pre-licensing education: $100-$400
- State application fee: $50
- Fingerprinting/background check: $40
- Licensing exam: $43 per exam
- Study materials (optional): $50-$200
- Errors and Omissions insurance: $300-$1,000 annually
How Long Does It Take to Become Licensed?
The timeline varies based on your schedule and study pace:
- Pre-licensing education: 1-4 weeks
- Application processing: 1-2 weeks
- Exam scheduling: 1-2 weeks
- Studying for exam: 2-6 weeks
- Appointment process: 1-4 weeks
Common Mistakes to Avoid
New agents often struggle because they treat insurance as a sales job rather than a service profession. Focus on understanding client needs and providing solutions rather than pushing products. Additionally, many new agents give up too quickly, building a sustainable book of business typically takes 2-3 years of consistent effort.
Career Outlook for Texas Insurance Agents
The insurance industry in Texas remains strong, with steady demand by population growth, economic expansion, and increasing awareness of risk management. The Bureau of Labor Statistics projects insurance sales agent employment to grow in line with the national average through 2032.
Texas diverse economy, including energy, technology, healthcare, and agriculture sectors, creates opportunities for agents to specialize in commercial insurance lines serving these industries.
To become an insurance agent, you need to prepare for either life and health or Property and Casualty Course. 123AceTheTest.com is a Texas insurance licensing school built by experienced educators with deep industry knowledge. Our leadership team includes a 20-year insurance agent, and our instructors bring over 10 years of teaching experience. Contact us for more information.
More Resources:
1- Duration to Get an Insurance License in Texas