The short answer
Insurance clicks usually cost $15-$60 in the US, and more for competitive lines like auto and commercial liability in big markets. Independent agencies typically spend $3,000-$20,000 a month. The best returns come from niche products, local terms and lifetime value: a client who renews for years is worth far more than the first premium.
Cost per click by insurance product
| Product | Typical CPC | Notes |
|---|---|---|
| Auto / car insurance | $20-$60+ | Dominated by national carriers and comparison sites |
| Home insurance | $15-$45 | Often bundled with auto |
| Life insurance | $15-$50 | High lifetime value, heavy lead-gen competition |
| Health / Medicare | $15-$50 | Seasonal around enrolment periods; strict rules |
| Commercial / business insurance | $20-$70 | High premiums, strong local intent |
| Niche lines (contractors, trucking, landlord) | $10-$40 | Less competition, often the best ROI |
UK brokers face comparison sites instead of US carriers, but the pattern is the same: broad product terms are expensive, niche lines are where independents win.
Why independent agents shouldn't bid on "car insurance"
Broad product terms are a fight with companies spending millions a month. You'll pay top prices for searchers who mostly want an instant online quote from a brand they know.
Independent agents and brokers do much better on searches where their advantage shows: "[city] insurance agent", "insurance for landscaping business", "high-risk driver insurance [state]", "landlord insurance for HMOs". These are cheaper, less contested, and the people searching them value advice.
Worked example: a commercial lines campaign
An independent agency spending $5,000 a month on local and niche commercial insurance searches at about $30 per click.
| Step | Example |
|---|---|
| Monthly ad spend | $5,000 |
| Average cost per click | $30.00 |
| Clicks | 167 |
| Conversion rate to quote requests | 8.0% |
| Quote requests | 13 |
| Cost per quote request | $375 |
| Close rate to policies written | 25% |
| Policies written | 3.3 |
| Cost per policies written | $1,500 |
| First-year commission and fees | $3,500 |
| Revenue | $11,667 |
| Return on ad spend | 2.3x |
About $375 per quote request and $1,500 per policy written, around 2.3x in first-year value alone. Add renewals and cross-sells and each policy is worth several times that.
Where insurance ad budgets get wasted
Claims and login searches
"[Carrier] claims number" and "login" searches look relevant but are existing customers of other companies.
Job seekers
"Insurance agent jobs" and "how to become an insurance agent" are expensive and common. Exclude them.
Cheapest-quote hunters
"Cheapest car insurance" traffic rarely values an agent. Better to lead with advice, coverage and service.
Bought leads mixed with ads
If aggregator leads and ad leads go to the same team without tracking, you can't tell which is paying back.
How to lower your cost per policy
- 1
Pick niches, not categories
Build campaigns around the specialist lines you're best at. Less competition, better leads.
- 2
Measure policies, not quotes
Import bound policies from your agency management system so bidding follows sales.
- 3
Try Microsoft Ads
Insurance clicks on Microsoft Ads are often cheaper, and the audience skews older and higher-income.
- 4
Plan around seasons
Medicare and health enrolment periods, renewal cycles and new-year business insurance reviews all shift demand.