Last Updated: August 17, 2022

Estrella Insurance vs Renegade Insurance

A Look at The Better Choice for Agents

TLTR: This article compares two insurance entities: Estrella Insurance franchise and Renegade Insurance. It looks at business models, costs, obligations, earning opportunities, and more. 

Insurance is a dynamic industry, and it is recently being injected with technological advancements. There are several insurance business models that agents can use to grow professionally. However, with an industry that changes as rapidly as insurance, choosing the right fit for you is crucial. 

Estrella Insurance Franchise and Renegade Insurance (formerly Covered by SAGE) offer vastly different offerings with some overlaps. Estrella Insurance franchise is an established name with over 40 years of experience in the industry, and Renegade Insurance is a relative newcomer that is looking to disrupt the market by using technology in insurance. 

So, which is the better fit for you? Read on to find out!

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In this blog

How are Estrella Insurance Franchise and Renegade Insurance different?

Estrella Insurance franchise has over 40 years of industry presence. They follow a tried-and-tested franchise model, but there are several clauses that they put in their contracts (such as not allowing a new franchise outlet to open within a one-mile driving radius around another) that allows its agencies to compete with other insurance agencies rather than themselves. 

Estrella Insurance franchise also provides its agents with marketing & servicing support, and mandate training. They provide initial training that lasts for eight (8) weeks that agents are required to attend. Additionally, franchise owners receive ongoing support from the management team and assistance with every step before opening to improve the owner’s capacity to maximize income potential.   

On the other hand, Renegade Insurance is a relative newcomer to the industry, offering multiple lines of business for agents. With an investor portfolio of market leaders that built category-defining brands, Renegade Insurance operates on a brokerage model rather than a franchise, steadfast on disrupting the industry with market-leading technology.

How do Estrella Insurance Agents and Renegade Insurance agents make money?

Estrella Insurance agents make money through commissions from each policy they sell. Estrella offers a wide range of P&C insurance policies, along with life & health, and commercial insurance policies. They charge 14% as royalty fees and 7% more as advertisement funds.

Renegade Insurance agents make money on commissions too. For personal lines, the commission split starts at 80/20 for new business, and varies based on premium. The personal lines renewal business split is 50/50 between agents and Renegade. Likewise, for commercial lines, the split is 60/40 for new business, and 40/60 for renewal. 

How-do-Estrella-Insurance-Agents-and-renegade-insurance-agents-make-money

How much do they charge you?

Estrella Insurance runs on a franchise model. As such, Estrella charges a franchise cost of $25,000 from its agents. However, if you are a veteran, Estrella Insurance offers you a 10% discount on franchise fees. There are also several other charges that it takes, including up to $2,500 for training, 7% of agency revenue for advertising, and more. According to Franchise Grade, it takes anywhere from $49,950 to $84,000 initial investment for an Estrella Insurance franchise. There is also a franchise outlet requirement, which means spending on rent and maintenance.

Likewise, Renegade Insurance charges certain fees at different points for their agents to access their carriers, technology, training, and in-house licensed service center.  

Renegade Insurance also gives its agents full servicing and marketing support, negating the need for staff. This means that you have the potential to earn more.

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What is the market potential for both?

Estrella Insurance offers its agents access to over 160 carriers. They primarily operate out of 175 locations in Florida, California, Texas, Colorado and Arizona, with plans of adding New York and Illinois by the end of 2022. They also offer marketing and advertising assistance along with some servicing support to their agents. However, they take several charges from the agents to compensate for this.  

Estrella Insurance also has the power to exercise the right of first refusal while selling your book, so there might be some barriers to exit if you decide to start another insurance venture. 

Renegade Insurance provides its agents with access to over 90 carriers, which is quite substantial. Their market access is wide enough to address a vast appetite, from personal & commercial insurance to even life and health policies. 

Additionally, Renegade Insurance also offers a guaranteed buyout of a multiple of your book value. This means that the barrier to exit is substantially low.

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Is Renegade Insurance or Estrella Insurance Franchise the better option?

Estrella Insurance franchise is an industry veteran and works on a tried-and-tested business model. However, the entry as well as exit barriers are quite high, and require a lot of commitment and thought before starting. Like Brightway Insurance, Estrella Insurance also charges a fee and regular payments to maintain the franchise agreement.  

On the other hand, Renegade Insurance makes it quite easy for an agent to start their agency virtually. The monthly fee is nominal, and agents get to run an independent insurance agency from the comfort of their homes.  

Estrella Insurance and Renegade Insurance both offer a variety of benefits and deals to suit the requirements of different agents. Both have their unique standpoints, operating in two different business models. One could be better suited for risk-takers and willing franchisees, whereas Renegade can be optimal for those willing to try out a new model of carrying on their insurance profession. You can decide on the best choice for yourself by having a look at the table below, or comparing the benefits and risks of both.

In a Nutshell

Estrella Insurance Renegade Insurance
High Franchise Fee Yes No
Retail space required Yes No
Agents can sell life and health policies Yes Yes
Agents can sell personal policies Yes Yes
Agents can sell commercial policies Yes Yes
Monthly technology fees Yes Yes
Variable on-demand fees Yes No
Proprietary technology agents can use for free No Yes
Restrictions and fees on buyouts Yes No
Buyouts at multiple value of the book of business No Yes

Did you find this insurance blog helpful? Let us know if you have any more thoughts on this matter in the comments below!

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