Whether learning through the lizard or caveman, GEICO is one of the most popular insurance companies in the United States. The Maryland-based company is a wholly-owned subsidiary of Berkshire Hathaway and covers more than 27 million vehicles owned by more than 16 million policyholders. It is an insurance power that should not be taken lightly.
GEICO Insurance 2021: Everything you need to know:
GEICO was founded in 1936 at the height of the Great Depression by Leo and Lillian Goodwin, who dared to start a new company. The company was founded as a government employee insurance company, whose initial target audience was federal employees, and some recruited military officers. GEICO has written 3,700 policies and recruited 12 staff within one year.
Benjamin Graham, an economics professor at Columbia University in New York in 1948, chose to invest in GEICO. This was a pivotal moment in company history as Graham later taught a young Warren Buffet at Columbia, thereby establishing the famous bond between GEICO and Buffet. In 1951, Buffet visited Washington to learn more about GEICO and held an unruly meeting with Lorimer Davidson, an investment banker, and Goodwins’ good friend. After this meeting, Buffet decided to buy GEICO shares – the rest is history.
When Goodwin retired in 1958, Davidson was named his successor. Twenty years of steady growth continued to lead the company, which reached one million policyholders in 1964 and generated $ 150 million in insurance premiums in 1965. Growth slowed in the 1970s and years of aggressive expansion began to take place. the company’s loss reserves.
When GEICO was reported to buy $ 1 million in GEICO shares in 1976, it responded with cautious underwriting, a move that triggered Warren Buffet’s second appearance. In the 1980s, GEICO started a 24-hour wire service. 365 days a year for complaints, sales, and service. This customer-oriented model remains with the company today.
GEICO Insurance at a glance:
- GEICO insures more than 27 million vehicles and has more than 16 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 Poors for financial strength and claims-paying ability.
What product lines does GEICO cover?
Private passenger auto insurance is GEICO’s most popular offering. Beyond private passenger auto insurance, GEICO also provides: motorcycle, ATV, RV, and boat insurance; homeowners’, renters’, condo, co-op, and mobile home insurance; personal umbrella protection; life insurance; flood insurance; overseas insurance; business owners’; professional liability insurance; general liability insurance; commercial auto insurance; collector car insurance; identity protection; and jewelry insurance.
The GEICO Mobile app was created to provide GEICO consumers with easy access to their car insurance information. It provides immediate access to digital ID cards, roadside assistance, and a virtual assistant who can answer questions related to coverage, billing, and more.
Does GEICO use independent agents to distribute their products?
The GEICO website states: “GEICO never sells its products through insurance brokerages or independent agencies. GEICO Local Agents are exclusive agents for GEICO and partner companies and are not allowed to represent other insurance companies that compete with GEICO and partner companies in any way. GEICO Local Agents are permitted, with prior approval by GEICO, to sell insurance not offered by GEICO and partner companies.
“GEICO Local Agents are entrepreneurs who go into business to represent GEICO and property partners exclusively. Their primary role is to prospect and generate insurance leads and policies that GEICO would otherwise not capture.”
The gecko and the caveman:
The GEICO gecko made its advertising debut in 1999 and quickly became a popular symbol for the firm. The idea spawned from a common mispronunciation of the GEICO name as “Gecko”. The key aim of the GEICO gecko is to “save people money” on their car insurance. Five years later, the GEICO Caveman entered the scene with the “So easy a Caveman can do it” ad campaign.