Last Updated: June 10, 2022

GEICO Insurance or Renegade Insurance: Who’s The Ultimate Champion?

GEICO and Renegade Insurance (formerly Covered by SAGE) work differently but compete in the same arena of the insurance industry. Does one have better advantages than the other? Does a Geico insurance agent have significant advantages over a Renegade Insurance agent? Here, we shall take an educated look and find out.

GEICO has been in the market since 1936, while Renegade Insurance is comparatively new. However, both have made an impact on the insurance industry with their independent insurance agency. Does a GEICO insurance agent have the upper hand in the market compared to a Renegade Insurance agent?

We have already looked into the advantages of working with Renegade Insurance compared to Brightway Insurance, Goosehead Insurance, and more. This time around, we’ll look into GEICO and Renegade Insurance and look at what they can offer their agents.

In this blog

Who Is GEICO Insurance?

GEICO is short for Government Employee Insurance Company, and the insurance agency operates as a captive insurance agency. As the third-largest direct auto insurance provider in the United States, GEICO allows its local agents to sell only GEICO products and other products from partner companies.

The biggest perk of becoming a GEICO insurance broker is the franchise provides you top-notch advertising and the tools and tech to start your business. GEICO provides all their new agents with training and special PCs that aid the agents with sales and servicing.

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How do GEICO Insurance Agents Make Money?

GEICO insurance agents make money through new business and renewal business commissions. GEICO specifically pays their local agents 12% on new business and 5% on renewals for up to 2 years. These numbers are quite close to the industry standards, but the agents are left with little to no residuals. 

How Does GEICO Make Money?

GEICO has its locations in all 50 states, with over 240 local agent offices all around the country. As a captive agency, a GEICO insurance agent pays anything between $100,000 to $250,000 depending on the economy. The cost includes office leases, phone services, employees, advertising, and other office tools and supplies. The initial payment is a non-refundable one-time fee.

However, GEICO sells insurance policies directly to its customers, which conflicts with a GEICO insurance agent’s client market. Moreover, there are limited products on the shelf for your clientele, which can make your sales pitches stale.

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How Wide is Geico Insurance’s Market?

Although GEICO insurance brokers mainly close their deals through the internet or the phone, there are currently 240 GEICO insurance offices all around the country. GEICO offers both personal and commercial lines of insurance.

However, a GEICO local insurance agent will not be able to retain their book of business. Moreover, GEICO does not allow its agents to represent any other insurance companies that are not partnered with GEICO.

A GEICO agent will not be able to open a local agent office in the location of their choosing. The only way to get an office is to choose one from the approved list of markets for strategic purposes.

Who is Renegade Insurance?

Renegade Insurance began its operation much later than GEICO but has already been licensed in over 40 states and offers multiple business lines for its agent as of now. The company has a list of notable investors, which further encourages its motto to be a disruptive force in the insurance industry.

With top-notch plug-and-play insurance technology and an excellent carrier list, Renegade Insurance is equipped to give their independent agents exactly what they need to make an impact in their client’s lives. Renegade Insurance is not a captive agency. Rather, it is an insurance agency platform with a “you sell, we service” model.

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How do Renegade Insurance Agents Make Money?

Quite like GEICO agents, Renegade Insurance agents also make money through commissions. However, Renegade Insurance splits their commissions by up to 95% on new personal lines policies. Similarly, Renegade Insurance offers up to 50% on renewals. Similarly, Renegade Insurance offers a commission split of 60% on new commercial lines policies with a 40% split on renewals.

With over 40+ carriers to choose from, Renegade Insurance agents can truly look for the right product for each customer with varied price ranges.

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