GEICO Insurance or Covered by SAGE: Who’s The Ultimate Champion?

GEICO and 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 Covered by SAGE agent? Here, we shall take an educated look and find out.

GEICO has been in the market since 1936, while Covered by SAGE 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 Covered by SAGE agent?

We have already looked into the advantages of working with Covered by SAGE compared to Firefly Insurance, Brightway Insurance, Goosehead Insurance and more. This time around, we’ll look into GEICO and Covered by SAGE 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.

Who is better GEICO vs CBS

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 Covered by SAGE?

Covered by SAGE 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, Covered by SAGE is equipped to give their independent agents exactly what they need to make an impact in their client’s lives. Covered by SAGE is not a captive agency. Rather, it is an insurance agency platform with a “you sell, we service” model.

best GEICO vs CBS

How do Covered by SAGE Agents Make Money?

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

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

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How Does Covered by SAGE Make Money?

Unlike GEICO insurance agents, Covered by SAGE has no retail requirements for its agents. The agents can start their agency and operate virtually without a retail outlet, which allows them to truly become independent with a $0 investment into their agency.

However, a nominal membership fee is charged starting at the 6th month of joining the company. One big perk of becoming a Covered by SAGE agent is that you will own your book of business.

How Wide is Covered by SAGE’s Market?

Covered by SAGE houses almost a hundred insurance agents and has expanded its network to 40+ P&C and life insurance carriers. In addition to that, the company is also affiliated with multiple MGAs. With Covered by SAGE, the agents are encouraged to compare prices and carriers, cross-sell, and upsell from different lines of insurance. 

technology GEICO vs CBS

How Does GEICO Insurance Compare with Covered by SAGE?

GEICO has been running the game for decades, which means that having a big brand backing up your insurance agency will be a huge plus for you. It has expanded its operation countrywide, with more than 240 offices spread across the United States.

Insurance agents at Geico have the advantage of acquiring a strategically located office with tools and technology designed for marketing and sales. However, similar to any other captive agency, agents will need to fork up huge sums of money to begin as a GEICO insurance agent. You will not be able to work with any competitor’s products while working as a GEICO local agent. Moreover, if you decide to leave GEICO, you will not retain your book of business.

On the other hand, Covered by SAGE operates as an agent platform. The company believes in diversification and has a network of over 90 carriers for their insurance agents. The agents can start their own agency with virtually zero investment and start working remotely. What’s more, you will retain your book of business if you decide to leave the agency.

GEICO trains, employs, and pays its agents. Covered by SAGE also invests heavily into training and educating their insurance agents, with proprietary technology that branches to carrier onboarding, soft skills, and much more.

In A Nutshell

Geico vs CBS Table

Which Should You Choose?

While a captive model agency does have its perks, joining GEICO would mean that you will be paying hundreds of thousands of dollars even to start. Additionally, you will not have the freedom to choose the carriers you work with. What’s more, GEICO owns the book of business, not you. Becoming an insurance agent with GEICO backing you up may present several challenges you are not ready for, financially or otherwise.

Covered by SAGE, on the other hand, is here to revolutionize the insurance agency. They allow their agents to join with no retail requirements, which allows them to focus completely on learning and selling insurance.

The article has taken each insurance business model into account. It concludes that if you want to take your agency to the next level in this competitive market, you should choose a company that believes in your talents as a salesperson. Covered by SAGE does just that and more. Choose Covered by SAGE for a career revolution.

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