Geico Auto Insurance USA

Geico Auto Insurance USA

Geico Auto Insurance USA

Geico’s advertising efforts are equaled only by its top competitor, progressive insurance, within the US market. It’s hard to find many Americans who aren’t familiar with Geico’s mascot Gecko, or the GEICO caveman.

The 2021 stock market forecast sees a better outlook for auto insurance companies as we return to work and thus use our vehicles more.

Yet Geico Insurance Company has used a multibranding strategy to reach a wider audience with creative and imaginative ads for many target audiences. It gave the company a distinct advantage over other auto insurance companies.

Gieco was the brainchild of Leo and Lillian Goodwin. They established the auto insurance startup during the great depression in the 1930’s. Originally, it was set up as a Government Employee Insurance Company for federal employees and military offices. They wrote 3700 policies in the first year.

Clearly, American consumers had a need for insurance during a depression, but the demand would of course grow and grow. Although the General Employee Insurance Company (GEICO) started humbly, within 7 decades, it would come to dominate insurance, particularly the auto insurance segment.

In 1951, Lorimer Davidson, an investment banker and good friend of the Goodwins, met stock market investor Warren Buffet who was visiting Washington to learn more about GEICO. Buffet decided to buy some GEICO stock. Later Buffet and his company Berkshire Hathaway decided to buy the company in 1996.  The company became a key contributor to his financial empire, making him one of the wealthiest people in the world. While success is laudable, we have to remember that auto insurance buyers might be making others rich at their own expense.

Geico earned $35.57 billion of premiums in 2019, and paid out $28.94 billion, or 81.3%, to cover loss claims.

GEICO Discounts on Auto Insurance

GEICO returned about $2.5 billion of credits to its 19 million auto and motorcycle insurance policyholders, reflecting the decline in driving during the coronavirus pandemic.

After Allstate offered its auto insurance customers a discount, GEICO announced it will offer a 15% credit on policies up for renewal between April 8 and Oct. 7. That would be a discount of about $150 per auto insurance policy and $30 per motorcycle insurance policy.

While it’s believed the auto insurance companies never give back to policyholders, the pandemic has perhaps made them change their ways and provide some discounts. Given truck and car insurance consumers can shop online and guarantee themselves cheap auto insurance in America, 2021 should see lower auto insurance costs.

Geico’s home page summarizes their value proposition for drivers:

Everyone needs car insurance. Make sure you get a quote from a company that delivers affordable rates and personalized service when you need it. GEICO’s an auto insurance company that’s been saving people money for more than 75 years. That’s why we know a thing or two about cheap car insurance rates. We also deliver a car insurance policy with exceptional coverage and best-in-class customer service, which matters when you have an accident or are stuck on the side of the road in an emergency. Get a fast and free car insurance quote to see everything GEICO has to offer. — from the GEICO website.

And GEICO’s auto policies are usually very competitive. And if other auto insurers beat them on price, GEICO often has benefits and features other companies can’t compete with including liability, medical, collision and comprehensive coverages.

GEICO Auto Insurance Auto Quote. Screenshot courtesy of Geico.com

Auto Policy Liability Coverage includes:

  • Bodily Injury liability: pays for bodily injury or death resulting from an accident for which you the policyholder are at fault
  • Property Damage liability: pays on damage to someone else’s property resulting from an accident for which you are at fault.

Medical Coverage:

  • Medical Payments coverage: may pay medical expenses to policy holder and covered passengers in a car accident you are involved in.
  • Personal Injury Protection coverage: may pay for your medical treatment, lost wages, or other accident-related expenses

Uninsured Motorist Coverage:

  • Uninsured Motorist coverage: may help compensate you for your injuries or property damage that were caused by a driver who didnt’ have auto insurance.
  • Underinsured Motorist coverage: can protect you from at-fault drivers who don’t have sufficient insurance coverage to pay your auto claim.

Vehicle Coverages

  • Collision coverage: may pay for damages to policy holder’s car if involved in a collision.
  • Comprehensive coverage: may pay for damage to your car from theft, vandalism, flood, fire or other covered losses
  • An auto insurance quote from Geico should be part of any money saving strategy. While insurance brokers are likely where you’re going to get the lowest auto quotes, Geico might surprise you with a great quote too.

Check out more on how to lower your auto insurance costs and get auto policy quotes.  Need luxury auto insurance? Get a custom policy from insurance companies that specialize in this distinctive type of insurance coverage.

Find out how I saved $960 on my recent auto insurance policy switchover. Switching auto insurance companies might be the smartest decision you’ll make in 2021.

Other insurance companies to get quotes from: American Family Auto Insurance, Mercury Auto Insurance Company, Farm Bureau Auto Insurance Company, The Hartford Auto Insurance Company, General Car Insurance, MetLife Auto Insurance, Fred Loya Car Insurance, Travelers Auto Insurance, American Insurance Group, Amica Auto Insurance Company, Freeway Auto Insurance Experts, AARP Motor Club, Kemper Automobile Insurance, Erie Auto Insurance Company, Dairyland Auto Motorcycle Insurance, Netquote Automobile Insurance, Wawanesa Auto Insurance, Safeco Auto Insurance, Allied Auto Insurance Company, NJM Automobile Insurance, Shelter Insurance Company, Plymouth Rock Auto Insurance, Grange Insurance for Auto, Hagerty Auto Insurance Company.

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