Common Mistakes People Make Before Getting Their Insurance License

Mistake #1: Choosing an Unapproved or Low-Quality Education Provider

Not all pre-licensing courses are equal, and some are not even valid for licensing purposes:

The problem: Some candidates purchase courses from providers not approved by their state's insurance department. After completing the course, they discover their certificate is not accepted, forcing them to start over with an approved provider.

The solution: Verify state approval before purchasing any pre-licensing course. Check your state insurance department's website for a list of approved providers, or confirm approval status directly with the education provider.

Quality matters too: Even among approved providers, quality varies significantly. Courses that simply help you meet hour requirements without actually teaching the material leave you unprepared for the exam. Choose providers known for comprehensive content, practice exams, and student support.

Mistake #2: Rushing Through Pre-Licensing Education

The temptation to complete courses as quickly as possible often backfires:

The problem: Candidates click through lessons without engaging with the material, treating pre-licensing as a checkbox rather than preparation. They complete the required hours but retain little information, then fail the state exam—sometimes multiple times.

The solution: Approach pre-licensing as genuine education, not an obstacle to overcome. Take notes, engage with practice questions, and ensure you understand concepts before moving on. The time "saved" by rushing is lost many times over through exam failures and retakes.

Learning effective study techniquesPre License How To Study Insurance Licensing Exam Resources helps you retain information efficiently without unnecessary cramming.

Mistake #3: Studying the Wrong Material for Your State

Insurance licensing exams include significant state-specific content:

The problem: Candidates use generic study materials or courses designed for other states, then encounter unfamiliar questions about their state's specific laws, regulations, and requirements. State-specific content typically comprises 25–40% of the exam.

The solution: Ensure your pre-licensing course and exam prep materials are specifically approved for and tailored to your state. Review your state's exam content outline (available from testing vendors like Pearson VUE or PSI) to understand exactly what topics will be tested.

Mistake #4: Underestimating the Exam Difficulty

Insurance licensing exams are more challenging than many candidates expect:

The problem: First-time pass rates typically range from 50–70% depending on state and license type. Candidates who assume they can pass with minimal preparation often fail, adding weeks to their timeline and additional exam fees to their costs.

The solution: Take exam preparation seriously. Use practice exams to assess readiness—most experts recommend scoring consistently above 80% on practice tests before attempting the actual exam. If practice scores are lower, continue studying before scheduling.

Understanding what makes exams challengingPre License How To Pass The Property And Casualty Exam Resources helps you prepare appropriately for your specific license type.

Mistake #5: Poor Exam Day Preparation

Administrative and logistical errors on exam day can prevent you from testing:

The problem: Candidates arrive late, bring the wrong identification, forget required documents, or have name mismatches between their ID and registration. Testing centers have strict policies—violations mean you cannot test and forfeit your exam fee.

The solution: Review exam day requirements thoroughly in advance. Arrive 30 minutes early. Bring the exact identification specified (government-issued photo ID with signature, typically). Ensure the name on your ID matches your exam registration exactly. Leave phones, smart watches, and study materials in your car—they are not allowed in testing rooms.

Mistake #6: Ignoring Background Disclosure Requirements

Failing to properly disclose background issues creates serious problems:

The problem: Candidates with criminal history, regulatory actions, or other reportable events sometimes fail to disclose them on applications, hoping they will not be discovered. Background checks reveal these issues, and the failure to disclose is often treated more seriously than the underlying event itself.

The solution: Disclose everything required, even if you are unsure whether it applies. Most states provide guidance on what must be disclosed. Minor issues with proper disclosure rarely prevent licensing; dishonesty frequently does. If you have significant background concerns, consider consulting with the state insurance department before investing in education.

Mistake #7: Delaying Fingerprinting

Fingerprinting often becomes the bottleneck in the licensing process:

The problem: Candidates complete education and pass the exam, then delay scheduling fingerprints. Processing times for background checks vary, and this delay extends the gap between passing and receiving your license—sometimes by weeks.

The solution: Understand your state's fingerprinting requirements and timing. Some states allow fingerprinting before the exam; others require it after. Schedule your appointment as early as allowed in the process. Use your state's designated vendor to ensure results are properly transmitted.

Mistake #8: Name and Information Mismatches

Inconsistent information across documents causes application rejections:

The problem: Your pre-licensing certificate shows "Robert Smith," your exam registration says "Bob Smith," and your driver's license reads "Robert J. Smith." These mismatches cause processing errors, rejected applications, and delays while discrepancies are resolved.

The solution: Use your exact legal name—as it appears on your government-issued ID—consistently across all licensing documents: pre-licensing registration, exam registration, fingerprinting, and license application. Middle names, suffixes (Jr., III), and spelling must all match exactly.

Mistake #9: Not Understanding License Types

Pursuing the wrong license wastes time and limits opportunities:

The problem: Candidates obtain a Life & Health license when they want to sell auto insurance, or get Property & Casualty when they planned to sell Medicare. They must then complete additional education and testing for the correct license type.

The solution: Research license types before beginning education. Understand what products each license authorizes you to sell. Consider your career interests, target employers, and income goals. Many agents eventually obtain multiple license types, but starting with the right one for your immediate goals prevents delays.

Understanding what each license enablesPre License What Can You Do With A Property And Casualty Insurance License Resources helps you make informed decisions about where to start.

Mistake #10: Waiting Until Licensed to Job Search

Sequential thinking extends the overall timeline unnecessarily:

The problem: Candidates complete education, pass the exam, receive their license, and only then begin looking for employment. This adds weeks or months between licensing and income.

The solution: Begin exploring opportunities while pursuing licensure. Research agencies, attend industry events, connect with hiring managers, and interview before your license arrives. Many agencies hire candidates who are actively licensing, with start dates contingent on license receipt. This parallelization dramatically shortens time to first paycheck.

Mistake #11: Choosing the Wrong Agency

First agency choice significantly impacts early career trajectory:

The problem: New agents accept the first offer they receive without evaluating fit, training quality, compensation structure, or growth opportunities. Poor agency matches lead to early burnout, limited development, or leaving the industry entirely.

The solution: Evaluate multiple opportunities when possible. Ask about training programs, mentorship, lead sources, commission structures, and career paths. Talk to current agents at the agency about their experience. A slightly longer job search for the right fit pays dividends over years of career development.

Knowing where insurance careers can leadPre License What Are The Best Paying Jobs In Insurance Resources helps you evaluate which opportunities best position you for long-term success.

Mistake #12: Unrealistic Income Expectations

Misaligned expectations lead to discouragement and attrition:

The problem: Candidates enter the field expecting immediate high income based on top-performer stories or recruiter promises. When reality involves months of building before significant earnings, they become discouraged and quit before gaining traction.

The solution: Research realistic income timelines. Understand that insurance is a long-term career where income compounds as your book of business grows. Plan financially for the ramp-up period. Celebrate early wins while maintaining perspective on the bigger picture.

Understanding first-year earning realitiesPre License What Insurance Agents Actually Earn In Their First Year Resources helps you plan appropriately and persist through the building phase.

Mistake #13: Neglecting Continuing Education Planning

Licensing is the beginning, not the end of education requirements:

The problem: New agents focus entirely on initial licensing without realizing they will need continuing education to maintain their license. CE deadlines arrive, agents scramble to complete requirements, and some accidentally let licenses lapse.

The solution: Understand your state's CE requirements from the start. Note your compliance deadline and plan to complete requirements well in advance. Some agents complete CE hours throughout the year rather than cramming before deadlines.

Mistake #14: Going It Alone

Isolation makes the licensing journey harder than necessary:

The problem: Candidates struggle through the process without support, missing opportunities to learn from others' experiences, ask questions, or stay motivated during challenging moments.

The solution: Connect with others on the same journey. Many pre-licensing providers offer student communities or instructor support. Industry associations, LinkedIn groups, and local networking events connect you with experienced agents willing to share guidance. Building relationships during licensing creates your initial professional network.

Set Yourself Up for Licensing Success

Most licensing mistakes are preventable with awareness and planning. Taking time upfront to understand requirements, choose quality education, and prepare thoroughly actually saves time compared to rushing and encountering setbacks.

The agents who launch successful careers approach licensing as the foundation of their professional development, not an obstacle to overcome quickly. Solid preparation during this phase creates knowledge and habits that serve you throughout your career.