Geico Insurance

By Jodee Redmond

Geico Insurance offers a number of financial products to its customers, including policies for homeowners, renters, and vehicle owners. The company also offers life insurance coverage.

How Geico Got Started

Lillian and Leo Goodwin founded Geico Insurance during the Depression. Geico originally targeted government and military employees, but has since expanded its customer base to the general public. In fact, the acronym "Geico" actually stands for Government Employees Insurance Company.

The first headquarters for the company was established in Washington, D.C., in 1936. By the end of that year, 3,700 policies had been contracted with federal government and military employees.

Geico Today

Today, Geico has over 24,000 associates and several operation bases around the United States. Headquartered in Chevy Chase, M.D., Geico Insurance contracts with millions of policyholders and insures over 16 million vehicles. Geico provides several different types of insurance, including homeowner's insurance, renters' insurance, motorcycle insurance, umbrella insurance (this supplements standard insurance if your liability exceeds individual insurance policies), and boat insurance.

Geico has excellent financial standings with ratings companies such as Standard and Poor's, A.M Best, and Moody's. Geico has a AA+ rating from Standard and Poor's, as well as an Aa1 rating from Moody's and an A++ from A.M. Best. These designations indicate that Geico has the financial reputation of paying out claims on a consistent basis while simultaneously continuing to offer low insurance rates.

Geico Insurance for Homeowners and Renters

Geico policies generally cover the structure of the home and any permanent buildings on the property. Along with this broad coverage, the insurer also covers damage to the home's contents. The specific perils that are covered are spelled out in the policy. A certain level of coverage is also provided with a standard policy for items like jewelry, but the exact amount depends on where the policyholder lives.

Renters do not need to have coverage for the structure of the building where they live since the landlord's policy covers that. They do, however, need to protect their furniture, electronics, clothing, and other personal items with an insurance policy to cover these items. The renters' policy would also offer liability coverage in case someone is injured while on the rental property.

Geico Auto Insurance

When it comes to personal passenger vehicles, Geico is the fourth largest provider of auto insurance in the United States. Geico sells directly to their customers, which lessens operating costs and allows the company to offer more affordable premiums. There are several special premiums that the company can offer for your vehicle, such as mechanical breakdown service and emergency road service.

Mechanical breakdown service supplements standard collision insurance by covering repair costs for mechanical parts of the car, such as the windows and air conditioning. Emergency road service provides protection against typical everyday mishaps, such as lockouts, jump starting your car battery, and any other problem not covered by your standard car insurance policy. ERS enables the policyholder to receive faster service when these unfortunate incidents occur.

Saving Money with Geico

Geico insurance offers policyholders several ways to reduce rates, including:

Installing a driver and passenger side airbag in your vehicle.
Taking a driver's education or defensive driving course. In fact, if you are over fifty years of age, a defensive driving course can significantly reduce your car insurance rates.
Installing an anti theft system in your car.
Offering incentives for drivers who have been accident free for a period of five years or more. The company also offers a surcharge waiver program, which stipulates that accident-free drivers will not suffer a rate increase if an accident occurs after a specified period of time.
Wearing a seat belt.

Completing any one of these actions can result in a five to twenty-five percent decrease in overall cost. The company also provides discounts to active and retired military personnel and government employees.

Life Insurance Coverage from Geico

Having life insurance in place is a way for an individual to protect his or her nearest and dearest. It is used to replace income if the policyholder dies, and Geico recommends that all of its customers have a policy with a value of at least 10 years worth of income. The money can be used to pay for housing, bills, groceries, child care, or any other expense. The proceeds of a life insurance policy can also be used to pay for a child's post-secondary education or to fund the surviving spouse's retirement. Geico offers term insurance coverage through Life Quotes, Inc. This type of protection is an economical way for policyholders to protect their loved ones if tragedy strikes.

Geico Insurance is a well-established insurance provider that offers home and auto coverage to consumers. Life insurance products available through the company offer consumers a means of providing for family members when they are no longer able to do so.