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GEICO Car Insurance Review

GEICO is an acronym for “Government Employees Insurance Company.” Co-founded in 1936 by Leo and Lillian Goodwin, GEICO’S original mission was providing auto insurance to federal employees and their dependents. During a previous tenure at USAA, Leo Goodwin gained first-hand knowledge of the relatively low risks and high financial stability federal workers represented for insurers.

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Despite the governmental connotations and the explicit inclusion of “government” in its name, GEICO is an entirely private enterprise. Over the years, the company has progressed far beyond the call of duty first envisioned by its founders. With the 1973 advent of real-time computerized access to driving records, GEICO began offering auto insurance to the general public. In 1996, GEICO was acquired by Berkshire Hathaway. As of this writing, GEICO remains the wholly-owned subsidiary of that mega holding conglomerate.

Although GEICO gained official legal sanction in all 50 states just 2 years ago, it now holds the #3 spot among all private car insurance companies in the US. One distinguishing feature of this dynamic firm is its approach to consumer contact. Virtually all customer interaction is conducted online or via telephone.

GEICO Industry Ratings

A.M. Best (“Best”) is internationally-recognized as a reliable independent credit rater of insurance carriers. In May of 2010, Best deemed GEICO’s overall long-term outlook as “stable” and graded GEICO as follows in two major financial categories:

Financial Strength

This is an objective assessment of insurers’ relative pecuniary strength and ability to meet current contractual obligations. With assets exceeding $2 billion USD, GEICO’s rating of A++ is the highest possible grade for this evaluation criterion.

Issuer Credit Rating

This category independently rates insurance companies’ ability to meet prior financial commitments on an ongoing basis. GEICO merited the highest possible rating of “AAA” in this category as well.

Policy Offerings

Although best-known for auto coverage, GEICO has gradually evolved and emerged as a full-fledged multi-line insurer. Its product line includes many commercial and consumers lines of insurance including:

  • Motorcycle Insurance
  • Umbrella Insurance
  • Homeowners Insurance
  • Renters Insurance
  • Condo Insurance
  • and more

GEICO Car Insurance Discounts

Most are familiar with GEICO’s highly-touted “save 15 percent or more on your auto insurance” slogan however an extensive array of many other car insurance discounts are also available including.

Motorcycle Insurance Discounts

Savings of 5 to 20 percent off motorcycle insurance coverage may be available for transferring existing overage, being over a certain age, policy renewal, and completion of motorcycle safety instruction.

Military Discounts

Active-duty US Armed Forces personnel who receive orders to a DOD-designated area or whose stored vehicles are covered under a GEICO supplemental protection plan may qualify.

Federal Employee Discounts

GEICO acknowledges its “founding roots” from Federal employees with exclusive discounts for civilian government workers ranked at GS-7 and above. Depending upon an insured’s state of residence, a discount of up to 8 percent may be available. Membership in any of several GEICO-affiliated federal groups also qualifies policyholders for a similar discount.

Student Discounts

Students may save $100 to $200 on auto insurance premiums for maintaining an academic average of “B” or better, remaining accident-free for at least 5 years, or owning air bag-equipped vehicles.

Group Affiliation Discounts

GEICO offers insurance premium discounts to those holding membership in more than 275 affinity groups and professional associations.

Over-50 Driver Discounts

GEICO offers a Prime Time insurance contract for more mature customers upon initial policy purchase or renewal.

GEICO Privileges Program

In partnership with numerous major retailers, GEICO policyholders enjoy extensive discounts on non-insurance purchases.

GEICO Customer Satisfaction

JD Powers and Associates is a commercial market analyst and compiler of pertinent consumer data with long-standing international fame and recognition. The organization’s statistical conclusions have been found to be consistently accurate and are widely relied-upon as an accurate marketplace barometer. Product quality, consumer satisfaction and overall market trends have been identified through its exhaustive research.

Since 1968, JD Powers has provided objective, unbiased analyses of numerous industries and firms across the globe. Each year, the firm conducts an annual National Auto Insurance Survey to assess overall consumer satisfaction levels with their insurance carriers. Survey respondents are queried about their experiences in five key areas of service interaction with their auto insurance companies.

These five classification areas include interaction, policy offerings, billing and payment, price, and claims. Respondents are asked to assign scores of 1 to 5 stars for each of these categories. The more stars awarded, the higher overall satisfaction level indicated.

Per the JD Powers and Associates 2010 National Auto Insurance Survey, GEICO ranked 4 out of 5 stars in all of the five consumer satisfaction categories. These results were obtained from a survey of more than 25,000 US auto insurance policyholder responses. All inquiries were solicited between February and March of 2010.

The October 2010 edition of Consumer Reports magazine revealed results from a similar survey. Based upon responses from over 28,000 subscribers, the consumer-oriented publication placed GEICO at 13th out of a total field of 22 auto insurance carriers.

Conclusion

GEICO is indeed a progressive car insurance company whose stability and commitment to outstanding service has stood the test of time. Its impressive selection of innovative insurance products and enormous range of substantial discounts insure its continued success and popularity as an insurer for a very long time into the foreseeable future.

Does GEICO have the best car insurance rates?

While GEICO is one of the largest car insurance companies in America whether or not GEICO has the best car insurance rates for you will depend on a number of factors. Where you live, what kind of car you drive, your driving record – all of these factors (and more) are analyzed by car insurance companies to determine premiums and rates will vary from one company to the next. The only way to find the best car insurance rates is to shop around and compare at least a handful of car insurance companies. Get started and compare car insurance quotes today by entering your ZIP code above!

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