The Government Employees Insurance Company, popularly known as Geico, is a wholly-owned subsidiary of Berkshire Hathaway. The auto insurance mogul headquartered in Maryland is the second-largest insurance company in America.
You may be surprised to know what despite having “government” in their name, Geico is a private organization without any affiliation with a U.S government-owned organization.
Leo Goodwin and his wife Lilian Goodwin, founders of the company, gave it this name because their target audience was government employees.
Berkshire Hathaway – Get To Know The Owner
Berkshire Hathaway resides in Omaha, Nebraska; the American business conglomerate is popular because of its CEO Warren Buffet. Buffet singlehandedly curated the best investment story in financial history with Berkshire Hathaway, and despite its success, he considers it his worst investment.
You may be surprised to know that Buffet is a petty man – he bought the company in 1964 to fire the CEO at the time. But, don’t judge so quickly, as there is more to the story.
The company and Warren Buffet struck up a deal for him to buy shares at an agreed price, and the company was expected to buy back these shares.
However, when the deal became official, the company offered a much lower price than was agreed on. Fueled by anger, Buffet purchased the controlling interest in the company and fired the CEO.
Despite the company’s enormous success, investment mogul Warren Buffet often titles BH his worst investment. The company failing to honor their deal cost him an estimated two hundred billion dollars of profit.
We still can’t deny that the company has made a name for itself. The parent company is to staple names such as Geico insurance, BNSF Railway, Fruit of the Loom, Pampered Chef, and more. Undoubtedly, Berkshire Hathaway is one of the most diverse holding companies out there.
Geico Insurance History
In 1936 Leo Goodwin Sr and his wife Lilian founded Geico to provide insurance services to government employees and their families. Have you ever heard of the United Services Automobile Association (USAA)? Leo worked in this company for nearly ten years before starting up his own business.
Leo and Lilian relocated to Washington D.C. and reincorporated Geico as a D.C company – they believed their company would perform better where the highest concentration of federal workers was located at the time.
The company has experienced exponential growth under several leaders such as its founder, Lorimer Davidson, Ralph Peck, David Lloyd Kreeger, etc.
Geico was named “The Security I Like Best” from 1948 to 1958. However, things began to take a downturn for the company several years later when it reported a loss of over $126,000,000. It took the involvement of 45 insurance companies to save Geico from collapsing.
Insurance Coverage Offered by Geico
Geico offers coverage for the following:
|Type of Coverage||What it Covers|
|Liability Coverages||Damages relating to physical injuries and damaged property caused by the policyholder|
|Uninsured Motorist Coverages||Protects the policyholder from injuries or damages caused by uninsured drivers|
|Medical Coverages||Medical expenses caused by a car accident regardless of who caused the accident|
|Vehicle Coverages||Damage from collision, vandalism, theft, flood, or any other covered peril|
|Others||The company offers coverage for mechanical breakdowns, rental reimbursements and emergency road service.|
The company also offers several juicy discounts where customers can save as high as 23% on their insurance costs.
Some of their discounts include:
- Vehicle Equipment Discount
- Driver Habits & History
- Federal Employee (Eagle) and Military Discount
- Multi-policy and Multi-Vehicle Discount
Geico’s Other Insurance Policies
Some people may be surprised to know that Geico offers other forms of insurance besides auto insurance. The company also sells coverage for:
- Homeowner’s and Condo Insurance
- Commercial Auto Insurance
- Boat Insurance
- Recreational Vehicle Insurance
- Renter’s Insurance
- Medical Malpractice Insurance
- Jewellery Insurance
- Pet Insurance
- Identity Protection
- Travel Insurance
- Flood Insurance
Frequently Asked Questions
We’ve compiled a list of frequently asked questions and answers. These FAQs will help you understand everything you need to know about the owner of Geico insurance company. Let’s check it out!
How do I file a claim with Geico?
Filing a claim with Geico is relatively easy since they give you multiple options to do so. For example, you can file a claim via the mobile app, website, or phone call.
The claim process involves describing the incident and providing specific details such as the date, time, and place of the accident. Also, provide the policy information for all parties involved.
The claim process usually requires the assistance of a Geico agent, so it is advisable to start phoning the company.
What are the requirements for getting a quote from Geico?
Getting a quote from Geico is a short and easy process that can be done completely online. First, visit the company website and provide your zip code, and answer the questions as prompted by the site. You should receive your quote in a short time.
Why choose Geico Insurance?
If you wonder whether Geico is the right provider for your insurance needs, you may not be off track. Geico receives positive ratings from its users and has one of America’s highest customer satisfaction ratings.
The company is highly accessible – you can get virtually anything done via phone, mobile app, and the company website. Lastly, they offer juicy discounts to keep their policies affordable and convenient.
America’s beloved GEICO is owned by none other than renowned Berkshire Hathaway, one of the most successful holding companies in existence. So it is no wonder why Geico is as successful as it is, claiming its spot as the second-largest insurance company in the U.S. Any company under the management of investment Mogul Warren Buffet is bound to be a success.
GEICO: Everything You Need to Know – Insurance Business
Insurance Options for your Coverage Needs
Everything You Need to Know About Geico Insurance
20 Fun Facts you Didn’t Know About Berkshire Hathaway