How Much Does It Cost to Spend on Facebook Ads? An Insurance Industry Guide

Whether you sell auto, home, health, or life insurance, one thing is certain — getting consistent, high-quality leads is the lifeblood of your business. Facebook Ads can be a powerful way to reach people who are actively thinking about protecting their future, but the big question is, how much should you spend to get results without wasting money?

The truth is, your cost will depend on several factors including competition, location, the type of insurance you sell, and the quality of your ads. Let us break down the numbers so you can plan a budget that delivers a healthy return on investment.

1. What Affects the Cost of Facebook Ads for Insurance Agents

Facebook Ads work on an auction system, so you are essentially bidding for your ideal prospect’s attention. Here are the key factors that determine what you will pay:

• Type of Insurance: Life and health insurance leads often cost more than auto or renters insurance because they tend to have a higher policy value.
• Location: Costs are higher in areas with a dense population of competing agents or brokers.
• Audience Targeting: The narrower and more qualified your audience, the higher your cost per click — but often the better the lead quality.
• Ad Quality: Strong creative with a clear, specific offer lowers your cost per lead by improving engagement.

2. Typical Spend for Insurance Campaigns

Here is what most insurance professionals can expect when running Facebook Ads:

• Daily Budget: $20 to $100 per day for lead generation
• Cost Per Click (CPC): $1.50 to $5 depending on the insurance type and audience
• Cost Per Lead: $25 to $150, with life and health leads at the higher end

Many agents see steady results with $1,000 to $3,000 per month in ad spend, especially when paired with a proven follow-up process to convert leads into policies.

3. How to Maximize ROI on Facebook Ads for Insurance

• Use testimonial videos from clients to build trust quickly.
• Highlight urgency with limited-time rate locks or policy discounts.
• Run retargeting ads to re-engage people who visited your landing page but did not request a quote.
• Focus on specific life events such as moving, getting married, or having a child — these trigger insurance buying decisions.

4. Scaling Your Budget

Once your campaigns are producing profitable leads, you can scale up gradually. The key is to reinvest in the ads, offers, and audiences that are bringing in your highest-quality policyholders.

The Bottom Line

Facebook Ads can deliver some of the best ROI in the insurance industry when used strategically. It is not about spending the most — it is about spending smart, targeting the right audience, and following up with precision.

Get in touch — we are here to help insurance professionals generate more high-quality leads and close more policies with Facebook Ads that work.