: For a book alone, it is often 1.0x to 1.5x annual gross commission.
: Some sources indicate that upon exit, State Farm pays out roughly 1x annual commission over 20 years. How to value an insurance agency | Higginbotham buying a state farm book of business
Buying a State Farm "book of business" is structurally different from buying an independent insurance agency. As of 2026, State Farm agents operate as independent contractors, but the company legally owns the policies and the client database. 🔑 Core Concept: Assignment vs. Purchase : For a book alone, it is often 1
Unlike independent agents who can sell their business on the open market, State Farm "books" are typically rather than sold in a traditional sense. As of 2026, State Farm agents operate as
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?
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: