Car Insurance

Companies Reviewed...

GEICO Auto Insurance



Company Name: GEICO

History of the Company:

Founded in 1936, the original GEICO serviced government employees and military personnel. In fact, contrary to most common day beliefs that the name was derived in conjunction with the company’s famous mascot, the Gecko, GEICO is actually an acronym for “Government Employees Insurance Company”.



Husband and wife team, Leo and Lillian Goodwin, believed that if they promoted insurance to specific niches, they would be able to decrease premiums and still earn a profit. Even during the Depression, they were able to realize this feat. Their target markets were federal employees and three grades of noncommissioned military officers. The company grew quickly ending the1936 calendar year with twelve employees and three thousand seven hundred auto policies in force.

In 1951, Warren Buffett (presently the richest man in the world) visits the GEICO office and decides to purchase a block of shares in the company. Leo Goodwin retires in 1958 and throughout the 1960s, the company grows exponentially reaching the one millionth policyholder mark in 1964 and doubling earnings in 1966. Sadly in 1970 Lillian Goodman passes away and her husband Leo follows in 1971. The company experiences several hurdles with decreasing reserves but makes changes that strengthen the finances and put the company on more stable footing.

Warren Buffett makes a second large purchase of stock in 1976 and the company continues through the 1980s with slow but steady growth. Higher visibility advertising is launched nationally and in 1996, GEICO becomes a wholly owned subsidiary of Berkshire Hathaway Inc. (Warren Buffett’s investment firm) when the rest of the outstanding shares are purchased.

Once Berkshire Hathaway became involved, it allowed the company to expand its advertising budget in a larger national way with direct mailings and television commercials. Then in 2000, the lovable GEICO Gecko made his debut. GEICO furthered its advertising campaigns in 2004 by adding the well-known “Cavemen” ads along with the slogan that “geico.com was so easy even a caveman could do it”.

Mission Statement:

GEICO’s goal is to provide excellent coverage, low prices and outstanding service.

Coverage:

Cars, trucks, motorcycles, scooters, ATV (all-terrain vehicles), recreational vehicles, boats, and commercial vehicle fleets.

Statistics:

• GEICO ranked number one among car insurance companies in the “Brand Keys Customer Loyalty Engagement Index” for 2008
• Roughly twenty-two thousand employees
• Insures more than fourteen million, four hundred thousand vehicles
• Largest auto insurer in Maryland, New York, the District of Columbia and Hawaii.

Special Features that Differentiate Company from Others:

• GEICO has a special interest in the US Military because of the founders’ mission to help US troops. As a result, the company offers discount programs and service options specific to US troops at home and abroad.
• GEICO offers Umbrella Insurance Policies that provide coverage over and above the regular policies in order to protect policyholders’ assets in the event of a claim or event where the customer is deemed personally responsible or liable.
• Auto Repair Xpress is available in more than four hundred repair shops throughout the US.
• Powersports is established.
• Customer can manage policy online from making payments, adding or removing options, changing policies, and lodging a claim.
• Offers the website in Spanish


Telephone: 1-800-861-8380
Website: http://www.geico.com

More auto insurance companies and info about them on The Auto Insurance Shopper.

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