Independent AAA Insurance Agency Owner?

[johnkearnsagency]

Any one in the Carolina's have experience with AAA of the Carolina's independent agency owner opportunity?

I'm relocating to the Carolina's and looking into this and want to hear about any pros and cons.

 

[jdlash]

Will you represent any other carriers? Here in Michigan they have a program called the EA program (Exclusive Agent) Those agencies don't seem to last long. It's very challenging only representing only one carrier.

I have AAA through my agency and I am a true independent agent.

 

[bps]

I don't have any info on AAA, but where in the Carolinas are you relocating? If NC, Erie is selectively appointing, and is a great opportunity. Erie is not in SC.

 

[bps]

Erie is a really good regional carrier, both in personal and commercial. However, they aren't interested in coastal areas, so I don't think they'll be a fit for you. Good luck with your search.

 

[bps]

I don't think that would be something they would be interested in.

 

[fun2drum]

John if you do this, I would be interested in hearing how it goes for you so please make sure to post updates.

 

[Philly]

I spoke with them and they have a independent contractor where the commission is 10% on new and renewal. They also look to see that you have $75,000 of liquid assets available.

 

[Philly]

You also have to have 2 full time staff members.

 

[fun2drum]

$75,000 liquid assets is a reasonable requirement, all things considered, and I personally wouldn't start something like that without more than $100,000 I could get to relatively quickly. They're doing agents a favor by requiring them to have at least some money in what's basically an emergency fund. I've seen so many people's businesses fail and they lost everything just because they didn't have the money to start it in the first place. Many years ago I was almost one of them, but that's another story. Anyway, that AAA thing is an interesting idea for someone wanting their own agency.

 

[NCAgent828]

Update:

I would be unable to write business in my 26 other states for my specialty niche market, if appointed with the AAA Club here in the Carolina's without having all the other AAA Clubs in those states and any future states where I am appointed approving me to do so, plus they would want me to roll-over my niche market, if approved. It's also a quasi captive agency program. You do not own the expiration's of the policy, but do own the economic interest in it. You do not have to pay for e&o, management system, or comparative rater. No franchise fee / upfront cost or ongoing monthly costs, which you have to pay out to them or deduct from commissions. Direct appointments. Your agency name on the dec pages No monthly sales goals or premium minimums. They would allow me to work virtual. Its an 80/20 split both New and Renewal, and offer sales support and co-branding. I would have to do all the servicing. They offer about 30 carriers outside of the AAA carriers. I've looked into Goosehead, Brightway, Oili, Firelfy, ASNOA, AgentSecure, and a few others. So far, if I was planning to focus on writing personal and commercial lines only in the Carolina's, this would be the most ideal agency group to partner with, even if I wasn't approved to write elsewhere with my niche market. However, I'm passionate about my niche market, so I hope they can work it out with the other AAA Clubs to allow me to write in all states outside of there club territory. I don't mind giving them 20% of that business.

Just curious here. If you have the niche market you talk about, why go to AAA or Goosehead. It seems like all of your considerations basically already have a brand and a set up. What’s stopping you from doing this on your own? Not being negative about the groups but the freedom you would have without joining one of these would be so much more. My experience is the more someone else pays for, the more control they have. Why not come up with your own brand and market to that niche? In NC there are good personal lines carriers that will appoint you. National General, foremost, Dairyland, Discovery. You can get your homeowners stuff through an MGA until you get an appointment. Coming from Farmers it may seem like the best way is to have an “agency in a box” type model like these groups but long term they will be just like Farmers. Just a thought.