What Is a Good Budget for Google Ads? (Insurance)

For insurance companies, Google Ads can be a powerful way to generate high-quality leads — from auto and home coverage to health and life policies. But because the insurance industry is one of the most competitive in online advertising, choosing the right budget is critical to getting results without overspending.

Start with your policy goals

Your budget should reflect the type of insurance policies you want to sell and the lifetime value of each client. A single policyholder can stay with you for years, so the cost to acquire them is often worth the investment.

• Auto insurance: Competitive market with moderate CPCs, but high lead volume potential.
• Life insurance: Higher CPCs but strong long-term value per client.
• Specialty insurance: Niche keywords with lower search volume but higher conversion rates.

Understand insurance industry benchmarks

The insurance sector has some of the highest average cost per click (CPC) rates across all industries. In most markets, CPCs range from $15 to $50 depending on the product and competition.

• Auto insurance keywords: $15–$25 CPC.
• Life insurance keywords: $25–$40 CPC.
• Specialty or niche insurance: $10–$20 CPC.

Recommended monthly budgets

For most independent agents or small agencies, starting with $3,000 to $6,000 per month allows you to compete for high-intent keywords and gather enough data to optimize campaigns. Larger agencies or those in major metro areas may require $10,000+ per month to stay competitive.

Factor in testing and optimization

The first 60–90 days should be treated as a learning phase, with extra budget allocated for testing different keywords, ad copy, and landing pages. This helps identify which campaigns bring in the most profitable leads.

When to increase your budget

• If your campaigns are delivering profitable policy sales.
• If you are consistently hitting your target cost per acquisition (CPA).
• If competitors are outbidding you for top positions on high-intent keywords.

The bottom line for insurance providers

A good Google Ads budget for insurance is one that allows you to compete in a high-CPC environment while still delivering profitable customer acquisition. Start with a budget you can sustain, track performance closely, and scale once you see strong returns.

Need help building a Google Ads strategy that works for insurance? Contact us for a custom campaign plan that maximizes every dollar.