GEICO stands for Government Employees Insurance Company. It is one of the largest American auto insurance companies and it was founded in 1936 by Leo Goodwin Sr. and his wife Lillian Goodwin. Leo Goodwin was a successful businessman who had worked for his father’s insurance company before striking out on his own.
Initially, the idea was for GEICO to provide insurance coverage exclusively to government employees, but in 1948, the company went public and started selling insurance to the general public. Over the years, GEICO expanded its product from offering just auto insurance, to including other types of insurance, such as homeowners, renters, and umbrella policies. It also offers coverage for other types of vehicles, such as motorcycles, RVs, and boats.
In 1996, GEICO was acquired by Berkshire Hathaway, the conglomerate run by Warren Buffett. Under Buffett’s leadership, GEICO has continued to grow and innovate.
GEICO is particularly famous for its advertising campaigns featuring the company’s gecko mascot and humorous commercials as well as its industry-leading customer service. The company is headquartered in Chevy Chase, Maryland, and is a subsidiary of Berkshire Hathaway.
Throughout its history, GEICO has focused on providing affordable insurance to its customers while also investing in new technologies and processes to streamline its operations. This focus on efficiency and innovation has allowed GEICO to grow into the industry leader it is today. GEICO’s policies are available online, over the phone, or through local agents in some areas
The primary objectives of GEICO insurance
As an insurance provider, GEICO puts the needs of its customers first by focusing on the following objectives;
- Providing insurance coverage to individuals and businesses: The major objective of Geico Insurance is to provide insurance coverage to individuals and businesses for various types of risks, including auto, home, renters, and business insurance.
- Reducing financial losses: Geico Insurance aims to reduce the financial losses of its customers in the event of an unexpected occurrence, such as an accident, property damage, personal injury, theft, fire, or natural disaster.
- Offering competitive pricing: Geico Insurance attempts to offer competitive pricing to its customers by providing affordable insurance policies without sacrificing coverage. It uses a direct-to-consumer business model, which eliminates the need for costly intermediaries such as insurance brokers or agents; this reduces costs on the company and significantly affects their insurance rates positively by offering lower premiums to customers.
- Providing excellent customer service: Geico Insurance strives to provide excellent customer service to its policyholders by offering prompt and efficient claims processing, personalized assistance, and easy-to-use digital tools. GEICO places a strong emphasis on technology and innovation to improve its operations and make it easier for customers to interact with the company. For instance, GEICO was one of the very first insurance companies to offer online quotes and policy management, and it has continued to invest in new technologies to improve its customer experience.
- Promoting safety and risk management: Geico Insurance aims to promote safety and risk management among its customers by providing educational resources, tips, and tools to help them reduce the likelihood of accidents and losses.
- Enhancing financial stability: Geico Insurance aims to maintain its financial stability by managing its underwriting and investment risks and by maintaining adequate reserves to meet its obligations to its policyholders.
Overall, GEICO’s main objective is to provide high-quality insurance products and services at affordable rates while leveraging technology to deliver exceptional service to its customers. The company’s commitment to these objectives has made it one of the largest and most respected insurers in the United States.
Factors that affect the cost of GEICO insurance
The cost for GEICO insurance varies based on several factors, including:
- Driving record: Drivers with a clean driving record are typically eligible and qualify for lower rates than those with a history of accidents or traffic violations.
- Age and gender: Younger drivers and male drivers generally pay more for car insurance than older drivers and female drivers.
- Location: Your ZIP code and state can affect your insurance rates. If you live in an area with high traffic or a high crime rate, your rates may be higher.
- Type of car: The make and model of your car can affect your insurance rates. Expensive or high-performance cars generally cost more to insure.
- Coverage limits: The amount of coverage you choose will affect your rates. Higher coverage limits typically mean higher premiums.
- Deductible amount: The amount of your deductible will affect your rates. A higher deductible can lower your premiums but also means you’ll pay more out of pocket if you file a claim.
- Credit score: Some insurance companies, including Geico, may use your credit score to determine your insurance rates. A higher credit score can result in lower rates.
- Marital status: Married drivers are often eligible for lower rates than single drivers.
It’s important to note that these factors are especially for auto insurance, and can also vary depending on the state you reside in. You can request a personalized quote by visiting the GEICO website online and following the steps required. Also, Geico offers several discounts to help reduce the cost of insurance, such as multi-policy, multi-vehicle, good driver, and safety features discounts.
How to cancel your GEICO insurance policy
- Contact GEICO: Call GEICO’s customer service department at 1-800-841-1587 to start the cancellation process.
- Provide your policy information: You will need to provide your policy number and personal information, including your name, address, and date of birth.
- Explain your reason for cancellation: GEICO will ask why you are canceling your policy. Endeavor to be honest and straightforward with your reasons for cancellation.
- Confirm your cancellation date: GEICO will ask you when you would like your policy to end. It is advised to have a new insurance policy lined up, if necessary, before fully cancelling your GEICO policy.
- Verify any outstanding balances: GEICO will most likely need to verify if you have any outstanding balances or refunds due before cancelling your policy.
- Follow up: After you have confirmed your cancellation, it’s a good idea to follow up with GEICO to make sure your policy has been cancelled and any refunds have been processed.
Always remember that cancelling your policy before the end of your policy term could attract an additional cancellation fee charge. Make sure to read your policy documents and speak with a GEICO representative to get clarifications on any potential fees or penalties associated with canceling your policy.