GEICO Insurance Review (original) (raw)

GEICO, which stands for Government Employees Insurance Company, founded in 1936 to sell insurance products to federal employees and certain members of the military. The company went through many transitions over the next few decades, with the largest coming in 1996 when they were bought by Warren Buffett and his company, Berkshire Hathaway. GEICO is the company's direct-to-consumer insurance that focuses mainly on car insurance, but it has a broad portfolio of coverage options such as home, renters and motorcycles. Direct-to-consumer means that the main sales channel GEICO does not involve an intermediary, also known as agents. Customers can get a quote, buy a policy and make changes to existing coverage by phone or directly online. There is an agent licensed to sell products GEICO, but most of the sales policy carried out directly between GEICO and their customers. Company direct-to-consumer insurance (such as GEICO, Esurance and Progressive) has a competitive advantage over peers traditional agent-driven over them in that they can reduce costs because they do not pay a large commission for each sale and renewal. The downside is a client with a very broad insurance needs may unknowingly find themselves with gaps in coverage, unless they have a good understanding of everything that they need. One thing is certain. When it comes to auto insurance, GEICO is the real deal. In 2013, GEICO last elbowing Allstate to become the second largest auto insurance company in the United States. However, they are still quite a bit behind the leader, State Farm. Coverage options are available in all 50 states, as well as Washington DC