Last Updated: April 6, 2022

Smart Choice Insurance vs. Renegade Insurance: Helping Agents Make the Better Choice

Smart Choice Insurance and Renegade Insurance (formerly Covered by SAGE) are two vastly different players in the independent market. Here, we will look at how they square up against each other, and see if Smart Choice agents or Renegade Insurance agents have the upper hand.

Independent insurance agency is not a new idea; iterations of this approach have existed for the past few decades. Unlike the captive market, the independent market sees a lot of new, innovative growth through new players. But the industry also has quite a few old players who have settled into the niche well.

Previously, we’ve compared Renegade Insurance with Goosehead Insurance and Brightway Insurance Franchise. Today, we will look at two such entities: Smart Choice an aggregator with over 25 years in the market, and Renegade Insurancea relative newcomer looking to disrupt the market.

In this blog

Who is Smart Choice?

Smart Choice is essentially an insurance aggregator. They don’t give direct carrier access; agents must close business through them. They are one of the oldest aggregators in the industry, with a history spanning over 20 years.

How does Smart Choice insurance make money?

Smart Choice makes money from their commission splits. While agents get 100% commissions on some lines, this insurance aggregator charges 30% on other lines. Additionally, they also charge over $250 per month for access to EzLynx, a P&C rater they use.

How wide is Smart Choice’s market?

Smart Choice has over 25 years in market experience, and as a result, have a wide network of over 100 carriers in 45 states. They also allow multiple lines of business.

what is smart choice insurance

Who is Renegade Insurance? 

A small operation only a year back, Renegade Insurance is now licensed in over 40 states. They offer multiple lines of business for agents. With an investor portfolio of market leaders that built category-defining brands, Renegade Insurance is looking to disrupt the industry with market-leading technology.

Simply put, Renegade Insurance operates as an agency. They offer a “you sell, we service” model that allows agents to divert their energies into areas that acutely impact their growth.

How do Renegade Insurance agents make money? 

Renegade Insurance, like Smart Choice agents, make money from commissions. While Renegade Insurance does not offer 100% commissions on any lines, their splits are generous, with a 95/5 split across new policies on all lines, and 50/50 on renewals. 

How does Renegade Insurance make money? 

Renegade Insurance doesn’t have a retail outlet requirement; independent insurance agents can run virtual agencies of their own with a $0 investment. They charge $100 per month for access to their carriers, technology, training, and in-house licensed service center.

Hence, Renegade Insurance earns from the revenue that the agent generates, intimately tying their success with that of the agent.

How wide is Renegade Insurance’s market? 

As of now, Renegade Insurance is appointed with over 70 carrier partners (over 35 for P&C; over 40 for Life), and has affiliations with multiple MGAs. Agents have wide market access. Renegade Insurance agents can also sell commercial lines, life, and health policies.


How does Smart Choice insurance compare vs. Renegade Insurance?

Smart Choice is experienced. They have found a niche they are comfortable with, and it serves them well. However, it isn’t always in the favor of the agent.

Smart Choice is an insurance aggregator, so agents are responsible for everything. This includes servicing obligations, retail outlet maintenance, and other administrative tasks. Additionally, they need to close deals themselves, since they don’t give agents the authority.

Renegade Insurance recognizes that the agent is in their element when doing what they’re the best at selling. Their business model is tailored around this valid assumption. Agents are provided with licensing assistance, carrier appointments, remote servicing teams, marketing support, and more. There is no need for a retail outlet either.

Looking at the economics, Smart Choice looks stronger, but only on paper. While agents can get full commissions on certain lines of business, these are very limited, and Smart Choice charges 30% on other lines. Compared to this, Renegade Insurance offers agents up to 95/5 splits across all lines of business.

Renegade Insurance agents are also guaranteed a buyout of 2x their book value. Smart Choice, on the other hand, has the right of first refusal. This ensures that no one will put in a fair bid, since Smart Choice will buy the book at the end of the day. Coupled with the non-compete, agents can find themselves hamstrung when they hit rough patches.

In a nutshell

Smart Choice Renegade Insurance

Which should you choose? 

Smart Choice and Renegade Insurance are vastly different insurance agencies with diverse offerings. Smart Choice offers agents full commissions on certain lines, access to 100+ carriers, and an off-the-shelf rater to help agents.

Renegade Insurance offers agents one of the best splits in the market, remote servicing assistance, proprietary tech, and marketing assistance to help them sell more. Unlike Smart Choice, Renegade Insurance also has no retail requirements or servicing obligations.

Looking at all the points presented above, Renegade Insurance emerges as the winner, albeit by a slim margin.

Curious about what you can do as an agent? Why not check out our agent directory and find out for yourself!

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