- Headquarters address: 5260 Western Avenue, Chevy Chase, Maryland 20815
- GWP: $35.09 billion (annual earned premium in 2020)
- Size (employees): 40,000+
- Global locations: US, Belgium, Germany, Italy, Spain, United Kingdom
- Underwriting expertise: Auto insurance
- Key people: Todd Combs, President and CEO
- The number of complaints against GEICO are much lower than expected for an insurance company of its scope and size.
- It offers numerous discounts on products and services.
- The firm has a robust mobile app and online platform.
- Has one of the lowest overall average premiums in the US
- GEICO does not offer gap insurance.
- Claims processing can be inconsistent.
- It has the highest rates for drivers with a DUI.
- Has a limited network of local agents and some coverage types are available only through partners
Common coverage types
|Coverage Type||What it pays for|
|Liability Coverages||Damages for death or physical injuries resulting from an accident where the policyholder is at fault, or damages to someone else’s property from an accident where the policyholder is at fault|
|Uninsured Motorist Coverages||May help compensate the policyholder for injuries or property damaged caused by a driver without insurance or insufficient coverage|
|Medical Coverages||May help compensate medical expenses related to a car accident or for loss of wages, medical treatment, and other accident-related costs regardless of who caused the accident|
|Vehicle Coverages||May pay for collision damages or other damages resulting from vandalism, theft, fire, flood, or other covered losses|
|Others||GEICO also offers insurance coverages for mechanical breakdowns, rental reimbursement, and emergency road service.|
GEICO’s auto insurance discounts
- Vehicle Equipment Discount – potentially save up to 23% on air bags, anti-theft systems, and other car features
- Driving History & Habits – can save up to 22% for drivers who are accident-free for five years
- Federal Employee (Eagle) and Military discount of up to 12%
- Multi-Policy and Multi-Vehicle discounts for loyal customers
2020 JD Power Study Rating
867 out of 1,000 points ( highest-ranking among big car insurers in the US )
Other insurance from GEICO
Homeowners ’ and condominium policy, commercial car, boat, recreational vehicle ( RV ), ATV, and renters ’ indemnity
Cost to insure most popular cars
|Average annual cost in 2020 according to The Zebra|
|1. Ford F-Series: $417|
|2. Chevrolet Silverado: $509|
|3. Ram Pickup: $,1508|
|4. Toyota RAV4: $1,194|
|5. Honda CRV: $1,142|
|6. Toyota Camry: $1,409|
|7. Honda Civic: $1,455|
|8. Toyota Corolla: $1,319|
|9. GMC Sierra $528|
|10. Chevrolet Equinox $1,270|
Car insurance rates by age
|2021 average rates according to US News|
|25-year-old female: $1,228|
|25-year-old male: $1,185|
|35-year-old female: $1,060|
|35-year-old male: $1,084|
|60-year-old female: $1,004|
|60-year-old male: $1,036|
Car insurance rates by driving record
|2021 average rates according to US News|
|$1,100 for clients with a clean driving record|
|$1,395 for drivers with one speeding violation|
|$1,735 for those with one accident, and|
|$2,836 for those with one DUI|
1. General Background
Whether you know it through the gecko or the caveman, GEICO is one of the most well-branded policy firms in the US. The Maryland-based firm is a wholly-owned auxiliary of Berkshire Hathaway and provides coverage for more than 28 million vehicles owned by more than 17 million policyholders. It ’ s an insurance wedge to be reckoned with .
What product lines does GEICO cover?
Private passenger car insurance is GEICO ’ s most popular propose. Beyond individual passenger car indemnity, GEICO besides provides : motorbike, ATV, RV, and gravy boat policy ; homeowners ’, renters ’, condominium, cooperative, and mobile home policy ; personal umbrella security ; life policy ; flood insurance ; abroad insurance ; clientele owners ’ ; professional liability policy ; general liability policy ; commercial car insurance ; collector car insurance ; identity protection ; and jewelry indemnity.
GEICO at a glance – 2021
- GEICO insures more than 28 million vehicles and has more than 17 million auto policies in force
- It’s the second largest private passenger auto insurer in the US
- The firm employs more than 40,000 associates and maintains 17 major offices across the country
- GEICO enjoys high ratings from A. M. Best, Moody’s and Standard and Poor’s for financial strength and claims-paying ability
GEICO was founded in 1936 by husband and wife team Leo and Lillian Goodwin, who were brave enough to set up a new company at the altitude of the Great Depression. The company was established as the Government Employees Insurance Company, with an initial node target of union employees and certain categories of engage military officers. Within a class, GEICO had written 3,700 policies and hired 12 staff members .
In 1948, Benjamin Graham, a occupation professor at Columbia University in New York, chose to invest in GEICO. This was a pivotal consequence in the firm ’ second history as Graham would by and by teach a young Warren Buffet at Columbia and therefore establish the celebrated link between GEICO and Buffet. In 1951, Buffet visited Washington to learn more about GEICO and had an ad-lib confluence with Lorimer Davidson, an investment banker and good ally of the Goodwins. After this meet, Buffet decided to buy some GEICO stock certificate – and the rest is history .
When Goodwin retired in 1958, Davidson was named his successor. He went on to lead the company through 20 years of steady emergence, reaching the one million policyholder cross off in 1964 and generating insurance premiums of $ 150 million in 1965. growth slowed down in the 1970s and years of aggressive expansion were starting to take a price on the company ’ sulfur passing reserves .
GEICO responded by exercising prudent underwrite – a move that triggered the second Warren Buffet appearance, when he reportedly purchased $ 1 million shares in GEICO malcolm stock in 1976. In the 1980s, GEICO introduced a 24-hour a sidereal day, 365-day a class telephone service for claims, sales and service. This customer-centric model remains with the firm today .
Buffet’s Berkshire makes the bid
In the early 1990s, GEICO went from potency to military capability under the leadership of newly president, president and CEO Olza “ Tony ” Nicely. Warren Buffet ’ mho Berkshire Hathaway investment tauten made a invite for the shares of GEICO ’ s remaining stock in 1995, and by 1996 GEICO became a Berkshire Hathaway auxiliary .
3. Distribution channels
Does GEICO use independent agents to distribute its products?
The GEICO web site states : “ GEICO never sells its products through indemnity brokerages or independent agencies. GEICO local Agents are exclusive agents for GEICO and spouse companies and are not allowed to represent other insurance companies that compete with GEICO and spouse companies in any way. GEICO local Agents are permitted, with prior blessing by GEICO, to sell indemnity not offered by GEICO and spouse companies .
“ GEICO Local Agents are entrepreneurs who go into clientele to represent GEICO and property partners entirely. Their primary role is to prospect and generate insurance leads and policies that GEICO would differently not capture. ”
The GEICO Mobile app was created to provide GEICO consumers with easy access to their car policy information. It provides contiguous access to digital ID cards, wayside aid, and a virtual assistant who can answer questions related to coverage, placard, and more.
Read more: Best car insurance companies for 2022
4. What customers are saying
Owned by Berkshire Hathaway, GEICO is the second largest car policy ship’s company in the earth. It has a marketplace share of 13.6 % in 2020, according to the National Association of Insurance Commissioners ( NAIC ) .
In a recent J.D. Power sketch on customer satisfaction, GEICO ranked among the top large car insurers in the state based on product assortment, prices, rest of application, and its on-line platform. J.D. Power besides noted that price continued to be a bigger factor than the leverage experience during the COVID-19 pandemic. GEICO performed well in this view, but it was rated below average in terms of claims atonement .
On average, GEICO scored 4.0 to 4.5 out of 5 stars on respective comparison and customer review websites. In finical, Forbes adviser gave it a four-star evaluation pointing out its superior rates for drivers with poor credit and broken level of indemnity complaints. however, GEICO ’ sulfur products are not well-regarded by collision repair professionals and it charges much higher rates for drivers with a DUI conviction .