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 policyholders.
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 are 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 the general public. 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 Pros 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, policyholders 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 a 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 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 policyholders 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, airbags, daytime running lights, etc.
The Cons of the GEICO Insurance Company
One of the cons of having GEICO auto insurance is that you will probably find it hard to talk to the same customer service representative. Also, there are high rates for both old (over 70) and young drivers (male under 25, Female under 21).
Also, we don’t recommend GEICO for people who want to deal directly with a local insurance agent. This is because they have few local agents. The same thing goes for homeowners who aren’t willing to research their specific underwriter. This is because GEICO doesn’t service or underwrite its homeowner’s insurance policies. What they do is they match you with one of their home insurance partners. Drivers who had been in an at-fault accident within the last 5 years may not find their coverage sufficient as well.
GEICO Auto Insurance Company’s Reputation
Many have claimed that GEICO’s reputation originated from its popular and entertaining commercials as well as slight savings, but this is not the case. GEICO has, over the years, built its reputation for customer service, and this has overwhelmingly catalyzed its policyholder satisfaction and retention. Proof of this is seen in the company’s retention rate which has been ranked as being one of the best in the industry for auto insurance.
Who the GEICO insurance company is best suited for
The GEICO auto insurance is suitable for the following types of people:
- Females who are 21 years or older, males who are 25years or older.
- Government employees.
- If you have a clean driving history.
GEICO Mobile App
What we like about GEICO is its very accessible mobile app that drivers can use for all aspects of managing their auto insurance. You can do everything in the app, from getting a quote to filing a claim. Those who are insured with GEICO also have access to Amazon’s Alexa. They can use it to pay their insurance bills. As we said, you can manage everything just using your phone.
With GEICO’s mobile app you can:
- Access your digital insurance ID cards 24/7 whether online or offline and print them directly. You can even add your ID cards to your Apple Wallet if you’re an Apple user.
- Access roadside assistance like towing and emergency roadside help that is available 24/7, including the holidays. You can easily request help within 2 minutes.
- Easily submit photos of your vehicle’s fender bender to get an estimate of your vehicle damage in about 20 minutes – no need to book an appointment at an auto shop anymore!
- Connect with an agent Apple’s native Messages app and get answers about auto policy coverages, billing information, and more.
- Access GEICO’s Virtual Assistant available 24/7.
- Access GEICO Mobile’s Vehicle Care, which is powered by CARFAX®, to track your car’s service history, create a maintenance schedule, check for open recalls, among others.
Written By: Mike Rogers