If you’ve spent more than five minutes scrolling TikTok lately, chances are you’ve seen a reel or two claiming that insurance agents are pocketing 80% of your auto insurance premium. Sounds like the perfect setup for a scam, right? Except, it’s not true. At all. But like all good viral content, it’s catchy, dramatic, and a little outrageous—which is why it spreads so easily.

Let’s break this down with a dose of reality, a touch of wit, and a goal to leave you actually understanding how independent auto insurance agents like The Marcus Group make their living (hint: it’s not off your back).

The Viral “80% Commission” Claim: Where Did This Come From?

Every industry has myths. Restaurants are accused of watering down liquor. Car mechanics are rumored to invent repairs you don’t need. And insurance agents? Supposedly, they’re laughing their way to the bank with 80% of your premium. The origin of this claim likely comes from a distortion of the truth: some niche types of insurance policies may offer higher first-year commissions, but when it comes to auto insurance, those sky-high numbers just don’t exist.

It’s the internet, though. “80% commission” makes for a snappy soundbite. “Independent agents typically earn around 8–10% on auto policies”—well, that doesn’t exactly break the algorithm.

Insurance Agent Commissions 101: The Real Percentage

Here’s the part TikTok leaves out: independent agents who sell auto insurance earn somewhere between 8% and 12% commission, depending on the carrier and policy. That’s it. No luxury yachts. No Scrooge McDuck vaults. Just a modest percentage that allows them to run their business and take care of their clients.

Think about it: if you’re paying $150 a month for car insurance, that’s $1,800 a year. Your agent might make about $180 for the entire year on that policy. Not per month. Not in perpetuity. For the year. If you switch companies, cancel the policy, or let it lapse? That commission disappears.

Suddenly, the “80% pocketed by agents” claim starts to look a little silly.

Who Actually Pays Your Agent (Hint: It’s Not Coming Out of Your Pocket Extra)

This is another big misconception. People assume if agents are making money, it must mean they’re charging you more. Not true. Independent agents like The Marcus Group are compensated by the insurance company. Your premium is set by the carrier and regulated by the state. There’s no extra fee, no secret markup.

In fact, the beauty of working with an independent agent is that you get personalized guidance and ongoing service at no additional cost to you.

What Does Your Agent Do for That 10%? (A Lot, Actually.)

Here’s the part TikTok definitely skips over: the job description. Independent auto insurance agents don’t just hand you a policy and vanish. They:

• Review your coverage regularly to make sure it still fits your lifestyle and budget.
• Explain confusing jargon so you know exactly what your auto policy covers.
• Help you through claims when something goes wrong (think fender benders, hail damage, or accidents).
• Answer your questions quickly—no endless hold music or bouncing between call centers.
• Advocate for you when the claims process feels overwhelming or complicated.

That 10% commission translates into service, support, and peace of mind that lasts well beyond the day you sign your policy.

The Value of an Independent Agent: More Than Just a Price Tag

If auto insurance were just about the cheapest rate, then sure—you’d only ever shop by numbers. But anyone who’s ever had to deal with an accident knows it’s about a lot more than price. It’s about support when you need it most.

When you’re stranded on the side of the road or sorting through paperwork after a collision, you don’t want to be left on your own. You want someone who knows your name, understands your community, and has your back. That’s the value of a local, independent agency like The Marcus Group.

Beware the “Secret Insurance Hack” Scams Online

Here’s the irony: the same people shouting about “agents stealing your premium” are often trying to sell you something else. They’ll push a so-called discount or a “hack” that’s supposed to be smarter than using an agent. But the truth is, auto insurance is highly regulated. There are no back doors or secret tricks.

The real scam isn’t your independent agent—it’s the clickbait telling you not to trust them.

The Real Deal (And Why Your Agent Isn’t the Enemy)

So let’s set the record straight: independent insurance agents like The Marcus Group are not pocketing 80% of your auto insurance premium. They’re earning a modest commission from the insurance company, not charging you extra. In return, they offer personal guidance, expert advice, and hands-on service when life throws you a curveball.

So, the next time TikTok tries to convince you your agent is making millions off your auto policy, remember: it’s not only false, it’s unfair to the people who work hard to keep you, your car, and your family protected.

The truth isn’t always as exciting as a viral soundbite. But when it comes to your auto insurance, boring facts are better than flashy lies. And the fact is: your local independent insurance agent isn’t the villain. They’re one of the best partners you can have on the road ahead.

Before believing every reel, meme, or video, ask yourself: does this really make sense? When it comes to auto insurance, the truth matters more than clicks—and independent agents like The Marcus Group are living proof of that.