Those who choose to start a career that promises to be sustainable in the long run, potentially lucrative, and even fulfilling should look no further than insurance. There are many types of insurance the intrepid career-seeker can specialize in, and one of them is auto insurance.
Motor vehicle or auto insurance is perhaps the best segment in the industry, since every Canadian who owns a car is required by law to have it, if they want to be drive on government roads. Canadians risk heavy fines, getting their driver’s licence suspended or even having their vehicle impounded by local authorities if they drive without it.
Even if the cost of auto insurance can be expensive for motorists in some provinces, this is a worthwhile expense. This insurance protects motorists from paying for damage done to theirs and another car or other property if they are at fault in an accident. Auto insurance also takes care of the damage caused by unexpected events like theft, vandalism, fire, or hailstorms.
These are just some of the reasons why the job of car insurance agent is a viable career choice. That’s why we'll discuss how to become a vehicle insurance agent in this guide. Insurance Business will delve into several related topics including:
Prerequisites for becoming a vehicle insurance agent
To become a licenced insurance professional, most provinces and territories in Canada will require you to obtain an insurance licence. Typically, you must have the following qualifications:
Note that the education requirement is common for most every province in territory in Canada, except for BC – aspiring insurance agents must have a bachelor’s degree there. These are the regulatory bodies governing the insurance licence issuance in each area:
|
Province/territory |
Insurance regulator |
|---|---|
|
Alberta Insurance Council |
|
|
Insurance Council of British Columbia (ICBC) |
|
|
Insurance Council of Manitoba |
|
|
Financial and Consumer Services Commission |
|
|
Superintendent of Insurance |
|
|
Superintendent of Insurance |
|
|
Superintendent of Insurance |
|
|
Superintendent of Insurance |
|
|
Financial Services Commission of Ontario |
|
|
Superintendent of Insurance |
|
|
Autorité des marchés financiers |
|
|
Insurance Councils of Saskatchewan |
|
|
Superintendent of Insurance |
In some cases, you may have to apply for a general insurance agent licence, then take the applicable additional courses or modules to specialize as a motor vehicle insurance agent.
These are the steps involved in how to become a vehicle insurance agent. These steps are mostly common for all provinces in Canada. However, there may be slight variations in the educational requirements, courses you need to take, and the types of licensing exams you must pass to get the licence.
As long as you meet the basic eligibility requirements, you can start on getting your auto insurance licence by taking pre-licensing courses required by your provincial regulator. Typically, these exams cover general insurance principles and specific subjects related to auto insurance.
Depending on which province you are or want to practice in, here are some course providers you can access:
Insurance Brokers Association of Canada (IBAC) - offers the Fundamentals of Insurance (FOI) and Canadian Accredited Insurance Broker (CAIB) programs for the auto insurance licence
Douglas College - offers training for the Level 1 Salesperson/Adjuster License in British Columbia, which is required to become an insurance agent for the ICBC Autoplan
PNC Learning - has online courses for auto insurance licenses in Ontario
Insurance Institute of Canada (IIC) – in Ontario, the IIC offers courses to help aspiring vehicle insurance agents pass the general insurance licence exam
It’s important to keep in mind that most provinces use a three-tier licensing structure. Québec stands out in that it operates differently under the guidance of the Autorité des Marchés Financiers (AMF).
Obtaining your auto insurance licence and becoming a vehicle insurance agent generally requires candidates getting sponsored by accredited insurance companies. This is a crucial part of the application process, since some provincial regulators will not accept insurance licence applications without a sponsoring firm.
This requirement is meant to ensure that applicants get the necessary support and supervision to meet regulatory standards and serve clients effectively. Sponsorship for the insurance licence can have a twofold effect on candidates – they get practical experience in ethics while fulfilling on-the-job requirements.
With the assistance of your sponsoring firm or insurance company, submit the required application form and necessary documentation to the relevant authority’s online portal. In some cases, your licence application will require verification of suitability.
This can include proof of familiarity with provincial regulations for general insurance agents, doing business in good faith, and not engaging in conflicting jobs.
Note that many provincial regulators require that you take pre-licensing courses. You must also have passed the licensing exam within 12 months before applying.
Some provinces will have mandatory criminal background checks to ensure that candidates have a clean record. This can be part of the “suitability test” that some regulatory agencies require auto insurance agent candidates to undergo.
Generally, the provincial insurance regulator may direct you to use a specific vendor to do the background check (like Triton or MyBackCheck). But in some cases, you may be instructed to get cleared by the local police or RCMP detachment.
Most provincial regulators require insurance agents to get errors and omissions insurance in preparation for their practice. In Alberta, for example, licensed agents need to have an active E&O policy to meet the requirements of the Alberta Insurance Council. If you are an auto insurance agent working for an accredited insurer, this requirement can be waived.
Continuing education or CE credits are required by many provincial regulators. This way, regardless of whether you decide to sell life insurance, auto insurance, P&C or any other type of insurance, you stay informed on industry developments.
The easy answer is yes, as most provinces have shifted many stages of their licensing process online.
Even though there may be in-person classes or exams, you will likely have to complete most of your licensing application requirements via an online portal.
If you want to succeed as a vehicle insurance agent in Canada, there are certain steps you can take. Here are some practical tips you can use:
1. Leverage modern marketing strategies
The primary function of marketing is to satisfy customers' needs and wants, and to build a profitable relationship with customers. Nowadays, marketing to customers has become faster and more complex thanks to the internet and social media.
While this guide is for marketing for insurance brokers, there are a lot of traditional and digital marketing techniques you can apply that can greatly benefit your practice.
If you’re on the fence about becoming an auto insurance agent, you can check out our guide on how to get your insurance broker licence and become an insurance broker instead.
Personal relationships are an essential part of the insurance business, and that includes networking.
Succeeding as a motor vehicle insurance agent means constantly extending your reach and connecting with potential customers and partners.
Don’t hesitate to engage in social media platforms like LinkedIn, share useful content, and join relevant industry groups. You can also attend industry conferences to meet other professionals while gaining more insight into your market.
Sometimes the best referrals and potential clients are right in your backyard. Don’t hesitate to partner with local businesses like auto repair shops, auto detailers, and car dealerships. After all, every buyer needs auto insurance to cover unexpected damage and be allowed on government roads.
You can also tie up with local real estate brokers. New homeowners who just moved into town may need a car, and like their new home, that will need insurance too.
There are many sales techniques and strategies you can use to convert potential clients into paying customers and ensure repeat business from them. You can apply these 7 sales principles from a successful insurance broker into your practice.
And keep in mind, when you go deep into the customer’s challenges and show them your solutions, you create trust and present your products and services as the solution to their problems.
In the next few years, significant growth is expected for the Canadian auto insurance industry.
Despite the projected growth, the Canadian auto insurance industry is not without its share of challenges. These include:
These obstacles besetting the auto insurance industry in the coming years present some challenges, but some clouds have silver linings. There are provinces poised to enact measures to ease the rise of premiums. For instance, Alberta and Ontario are expected to introduce regulations that will mitigate the rising premiums and soften the impact on consumers.
With these predictions, auto insurance agents in Canada are advised to be cautiously optimistic.
One major driver of growth in the car insurance industry which will also be disruptive is the increased popularity and sales of hybrid and electric vehicles (EVs) in Canada.
With this development, the auto insurance industry can expect an associated higher demand for specialized insurance products for these vehicles.
In your journey to establish a long-term career as an insurance professional, knowing how to get your vehicle insurance licence is the first step. Since you’ve chosen this type of insurance as your career, it helps to have a passion for motor vehicles.
Couple this with a genuine concern for helping people keep their cars roadworthy, insured, and compliant with local laws, then you have higher chances for success.
Did you find this guide on how to become a vehicle insurance agent helpful in your career choice? Let us know if it impacted your decision in the comments
