: Most new agents enter through an "aspirant" or trainee program rather than a direct purchase.
While you aren't "buying" the title to the clients, you are often paying for the or the assets of an existing agency. Typical valuations in the insurance industry include:
If you want a rough idea of how much your insurance agency is worth, take the earned commission and multiply it by 1 or 1.5 times. Higginbotham Should I Start A State Farm Agency In 2026? buying a state farm book of business
Unlike independent agents who can sell their business on the open market, State Farm "books" are typically rather than sold in a traditional sense.
: Some sources indicate that upon exit, State Farm pays out roughly 1x annual commission over 20 years. How to value an insurance agency | Higginbotham : Most new agents enter through an "aspirant"
: You do not own the rights to the policies; State Farm can terminate the contract and reassign the book.
: For a book alone, it is often 1.0x to 1.5x annual gross commission. Higginbotham Should I Start A State Farm Agency In 2026
: Standard agencies are often valued at 1.5x to 3x gross revenue.