HOME
The Info List - GEICO



--- Advertisement ---


(i) (i) (i)

The GOVERNMENT EMPLOYEES INSURANCE COMPANY ( GEICO
GEICO
/ˈɡaɪkoʊ/ ) is an American auto insurance company headquartered in Chevy Chase, Maryland . It is the second largest auto insurer in the United States , after State Farm . It is a wholly owned subsidiary of Berkshire Hathaway that as of 2017 provided coverage for more than 24 million motor vehicles owned by more than 15 million policy holders. GEICO writes private passenger automobile insurance in all 50 U.S. states and the District of Columbia . GEICO
GEICO
sells its policies through local agents, called GEICO
GEICO
Field Representatives, and over the phone directly to the consumer, and through their website. Its mascot is a gold dust day gecko with a Cockney accent, voiced by English actor Jake Wood . GEICO
GEICO
is well known in popular culture for its advertising, having made a large number of commercials intended to entertain viewers.

CONTENTS

* 1 History

* 2 Advertising campaigns

* 2.1 Motorsports

* 3 Competition * 4 Lawsuits * 5 See also * 6 References * 7 External links

HISTORY

GEICO
GEICO
was founded in 1936 by Leo Goodwin Sr. and his wife Lillian Goodwin to provide auto insurance directly to federal government employees and their families. Since 1925, Goodwin had worked for USAA , an insurer which specialized in insuring only military personnel; he decided to start his own company after rising as far as a civilian could go in USAA's military-dominated hierarchy. Based on Goodwin's experience at USAA, GEICO's original business model was predicated on the assumption that federal employees as a group would constitute a less risky and more financially stable pool of insureds, as opposed to the general public. Despite the presence of the word "government" in its name, GEICO
GEICO
has always been a private corporation not affiliated with any government organization.

In 1937, the Goodwins relocated GEICO
GEICO
from San Antonio
San Antonio
, Texas
Texas
to Washington, D.C.
Washington, D.C.
and reincorporated the company as a D.C. corporation after realizing that their business model would work best in the place with the highest concentration of federal employees.

An important figure in GEICO's history is David Lloyd Kreeger , who became president of the company in 1964 and helped steer it into a major insurance enterprise. In 1948, he formed a group of investors who bought into GEICO
GEICO
right before it went public that year. He became senior vice president and general counsel of the company. Six years after becoming president of GEICO
GEICO
in 1964, he was named chairman and chief executive officer. He retained those titles until he retired in 1975. He continued as chairman of the executive committee until 1979, when he was named honorary chairman.

In 1974, under Kreeger's leadership, GEICO
GEICO
began to insure the general public, after real-time access to computerized driving records became available throughout the United States, and it was briefly the fifth-largest U.S. auto insurer. By 1975, it was clear that GEICO
GEICO
had expanded far too rapidly (during the 1973–75 recession ) when it reported a $126.5 million loss. To prevent GEICO
GEICO
from collapsing, a consortium of 45 insurance companies agreed to take over a quarter of its policies, and it was forced to issue a stock offering (thus diluting existing stockholders) to raise money to pay claims. It took five years (during which the company shrank significantly) and a massive reorganization to set GEICO
GEICO
on the path to recovery.

GEICO
GEICO
has also offered other types of insurance besides auto, including homeowner's insurance from 1962 to 1996. A sister company, the Government Employees Life Insurance
Insurance
Company (GELICO), offered life insurance from 1975 to 1985. Although GEICO
GEICO
has since focused on its core auto insurance competency (selling GELICO to Legal however, the local agent program has more than 150 offices countrywide. GEICO
GEICO
is now the second largest writer of private auto insurance in the United States.

After several years of denying claims and even canceling policies for policyholders that used their personal car for ridesharing companies such as Uber and Lyft , GEICO
GEICO
began offering rideshare coverage in select states in 2015, including in high-population states such as Texas
Texas
, Pennsylvania
Pennsylvania
, Ohio
Ohio
, and Georgia . The policy, which is issued through GEICO's commercial department, has received praise from insurance experts and quickly launched GEICO
GEICO
as the largest insurance provider for TNC drivers.

In 2016, J.D. Power rated the company #20 out of 24 for overall purchase experience, with a 2/5 score. Later that year U.S. Presidential candidate Donald Trump called for a boycott of the company.

ADVERTISING CAMPAIGNS

Main article: GEICO advertising campaigns

GEICO
GEICO
has many well-known ad campaigns. In 2012 GEICO
GEICO
spent over $1.1 billion in advertising, or 6.8% of its revenue. All are made and produced by The Martin Agency , which is based in Richmond, Virginia
Richmond, Virginia
. GEICO
GEICO
ads have featured several well-known mascots, including:

* The GEICO
GEICO
Gecko is the most prevalent spokesperson mascot and speaks with a Cockney accent . * The GEICO Cavemen (from ads claiming using their website is "so easy, a caveman could do it"). * Maxwell, the GEICO
GEICO
"Piggy" who shouts a long "Whee" and appears in more radio and TV commercials. * Actor Mike McGlone , who uses film noir -style narration to compare the ease of GEICO
GEICO
to things, famous people, or idioms. ("Could switching to GEICO
GEICO
really save you 15% or more on car insurance?...Is having a snowball fight with pitching great Randy Johnson a bad idea?") The scene is then acted out, with typically humorous results. In addition to Johnson, other ads have included Charlie Daniels
Charlie Daniels
, Andrés Cantor , Foghorn Leghorn
Foghorn Leghorn
, Elmer Fudd , R. Lee Ermey , and Ed "Too Tall" Jones among others. * The "money savers" campaign enlisted actors to portray average consumers who have resorted to various humorous extremes in order to save money, such as teaching a dog to sing or teaching a group of Guinea pigs to row a boat and perform some mundane task for the consumer, and then presented switching to GEICO
GEICO
as an easy alternative to such endeavors with the common line ".... there's an easier way to save money." * The "Happier Than...." duo features Jimmy (actor Timothy Ryan Cole ) and Ronnie (musician Alex Harvey ) playing a guitar and a mandolin, respectively, on a small portable stage. They comment on a fictitious preceding event, such as a man dressed in 15th-century attire laughing as he leads a trio of speed boats with the painted names Nina, Pinta, and Santa Maria. After cutting to the duo, one says to the other "You know, folks who save hundreds of dollars by switching to GEICO
GEICO
sure are happy." The other then replied, "How happy are they, (Jimmy/Ronnie)?" and in the case above, the response is "Happier than Christopher Columbus
Christopher Columbus
with speedboats!" * Kash, the stack of cash that represents the money you could have saved by switching to GEICO.

There are also GEICO
GEICO
ads that feature stories from GEICO
GEICO
customers about situations in which the company assisted them, but are translated by celebrities like Little Richard
Little Richard
and Joan Rivers
Joan Rivers
. Film trailer announcer Don LaFontaine appeared in one such ad, shortly before his death. The tag announcer for these spots was D.C. Douglas . GEICO
GEICO
is also an official sponsor of the National Hockey League and themed commercials for that always feature members of the hometown Washington Capitals
Washington Capitals
.

MOTORSPORTS

#13 GEICO
GEICO
Chevrolet SS driven by Casey Mears during 2015 Toyota/Save Mart 350 qualifying

GEICO
GEICO
has long been involved in motorsports sponsorships. Since 2008, the company has sponsored the Germain Racing team, first in the NASCAR Nationwide Series with Mike Wallace , and later in the NASCAR Sprint Cup Series with Max Papis and Casey Mears . Ty Dillon , grandson of racing legend Richard Childress , began driving the #13 GEICO Chevrolet in the 2017 season.

COMPETITION

GEICO's major competitors include Amica Mutual Insurance
Insurance
, Liberty Mutual Insurance
Insurance
, State Farm , Allstate , 21st Century Insurance
Insurance
, Reliance Partners , Progressive , Nationwide Insurance
Insurance
, and United Services Automobile Association .

LAWSUITS

In December of 2016, a federal Miami jury awarded $2.7 million to a family who sued the company, claiming the company acted in bad faith.

In November of 2015, a jury in Miami awarded a family $14.5 million after they sued the company for bad faith.

In October of 2015, the Consumer Federation of California successfully sued the company for $6 million after alleged discrimination based on occupation, education level, and other personal characteristics.

In October of 2015, the United States
United States
Court of Appeals for the 11th Circuit upheld a verdict against the company for over $700k in a breach of contract suit.

In 2013, Tony Dane of Las Vegas successfully sued the company for breach of contract following the theft of his car in which GEICO denied his claim, accused him of stealing his own vehicle and put a private investigator on him. He feared he may have lost custody of his children. His original attorney dropped him, so he pursued the case pro se and won, gaining a verdict from a jury.

In December of 2010, the family of John Potts, who was killed in a traffic accident by a GEICO
GEICO
customer, successfully sued the company for $8.48 million after the company refused to pay an adequate settlement following the crash.

SEE ALSO

* List of United States
United States
insurance companies

REFERENCES

* ^ Revenue: premiums written (2004), from Berkshire Hathaway
Berkshire Hathaway
10-K. U.S. Securities and Exchange Commission
U.S. Securities and Exchange Commission
, December 31, 2004. Accessed 17 December 2009. * ^ https://www.geico.com/about/corporate/at-a-glance/ * ^ Yerak, Becky (June 13, 2013). "Geico tops Allstate as nation\'s No. 2 auto insurer in 1Q". Chicago Tribune
Chicago Tribune
. * ^ GEICO
GEICO
History: An American Success Story. GEICO
GEICO
official site. Accessed 18 December 2009. * ^ "Leo Goodwin, Financier, Son of Founder of Geico". The Washington Post . January 18, 1978. * ^ A B Fowler, Glenn. " David Lloyd Kreeger Dead at 81; Insurance Official and Arts Patron". The New York Times
The New York Times
. Retrieved 14 May 2015.

* ^ Jones, William H. (June 8, 1978). "Investors May Get Geico Settlement". The Washington Post
The Washington Post
. * ^ "74. Geico (Berkshire Hathaway)". Forbes
Forbes
. Retrieved August 8, 2015. * ^ http://www.sfgate.com/business/article/Leaked-transcript-shows-Geico-s-stance-against-5910113.php * ^ https://www.geico.com/information/aboutinsurance/ridesharing/faq/ * ^ " Insurance
Insurance
Shopping Study (2016)", J.D. Power. April 29, 2016. Retrieved 25 jan 2017 * ^ "The Trump Files: Donald and the Great Geico Boycott", Max J. Rosenthal. Mother Jones. June 16, 2016. Retrieved 25 jan 2017 * ^ " GEICO
GEICO
Success Highlights Advertising Dollars vs. Agent Commissions Debate". Insurance
Insurance
Journal. October 22, 2013. * ^ "Lawyers Pursues Bad-Faith Claim After Geico Delay", Celia Ampel. Daily Business Review. December 22, 2016. Retrieved 9 jan 2017 * ^ "Florida Couple Recovers $14.5 in Bad Faith Case Against Geico", National Trial Lawyers. Lawyers and Settlements. November 14, 2015. Retrieved 9 jan 2017 * ^ "Geico agrees to $6-million settlement in discriminatory pricing case", Nick Shively. Los Angeles Times. August 24, 2015. Retrieved 9 jan 2017 * ^ "Geico Loses 11th Circ. Rehearing Bid In Bad Faith Case", David Langhorne. Law 360. October 1, 2015. Retrieved 9 jan 2017 * ^ "Real GEICO
GEICO
Customer Tony Dane Sues GEICO
GEICO
And Wins", Tony Dane. PR News Wire. February 6, 2013. Retrieved 9 jan 2017 * ^ "GEICO’s $9.6 million-dollar lesson in “bad faith” ", D'Amore Law Group. November 6. Retrieved 9 jan 2017

EXTERNAL

.