Government Employees Insurance Company, more commonly known as GEICO, is an insurance company for auto-mobiles. This subsidiary is wholly owned by Berkshire Hathaway, which (as of the year 2007) covered over thirteen million auto-vehicles which were owned by over twelve million insurance policy holders.
Additionally, the GEICO insurance company writes automobile insurance for private passengers in the fifty states in the USA and also in the U.S District of Columbia. Unlike other insurance companies which rely on their agents to sell their policies, GEICO has been known to use the direct-consumer model of sale. In turn, the funds that would have been spent paying agents is put into purchasing TV ads with several ads running concurrently in the national markets.
Founded by Leo Goodwin Sr. and his wife Lillian back in the year 1936, GEICO insurance was founded to directly provide federal government employees, along with their families, with auto insurance. Goodwin had previously worked with an insurer (USAA) which specialized in insuring military personnel. He later on ventured on his own after he had been promoted to the highest position any civilian could in a hierarchy dominated by the USAA military.
Based on the experience he got while working at the USAA, the original model for GEICO insurance was founded on the basis that federal employees coming as one group would constitute a more financially stable and less risky pool of cover compared to general publics. Even though the GEICO name has the word government in it, it isn’t affiliated with government organizations and has always been a private company.
The Pro’s Of The GEICO Insurance Company
GEICO expedites emergency and towing services for its members very professionally. With adjustment services and streamlined claims, necessary replacements and repairs are done in the most efficient way possible. What’s more, policy holders are able to track their claims online thereby avoiding the “phone trees” which always prove to be complicated.
- Flexible policy – GEICO insurance has policy flexibility in that it has well crafted policies that suit their policy holder’s budgets and needs. This auto insurance company also extends the savings made from the streamlined business-model to their customers. Regardless of whether you have multiple drivers or vehicles you wish to insure, decrease or increase policy deductibles, reduce liability coverage or even manage your payment structure of circle, GEICO policyholders have unprecedented liberty to do it. The best part is that you can do all this via the phone or online with the help of the dedicated GEICO agents. This is an added benefit for people residing in the rural areas.
- Claims timeliness and customer service – Getting the automobile from the road to your mechanic or the appropriate technician is only half the battle. The other half is ensuring that your claims have been processed, and the appropriate repairs are made in an efficient and timely manner. Fortunately, where GEICO is concerned, its policyholders have many methods they could use to track and also report claims. At the same time, it mediates between the several auto insurance companies involved thus facilitating timely and necessary car repairs.
- Discounts and benefits – The agent-free GEICO infrastructure allows policy holders to enjoy discounts ranging from good student and driver discounts, automatic payments discounts. There are also discounts for policyholders who have multiple-GEICO policies, as well as established customers. Moreover, GEICO has discounts for the policies that involve cars that have advanced security and safety features like anti-theft systems, anti-lock brakes, air bags, daytime running lights etc.