GEICO Auto Insurance GEICO (officially Government Employees Insurance Company) established in 1936, by Leo and Lillian Goodwin, with a f...

GEICO Auto Insurance

GEICO Auto Insurance

GEICO Auto Insurance

GEICO (officially Government Employees Insurance Company) established in 1936, by Leo and Lillian Goodwin, with a focus on offering plans to government employees and their families. The logic behind this move was that such a demographic would be less of a financial risk - key in an industry like insurance (insurance is all about risk management). It continued this business practice until the 1970's when, under the influence of a new president, GEICO offered its services to the general public for the first time.

GEICO is most well-known for its abundance of advertising. Mostly through their gecko mascot (widely popular due to his wit and accent), they have achieved a vast public awareness. Whether this converts well into policy sales, however, is uncertain. Often, but not always, he uses a tagline of, "Fifteen minutes could save you fifteen percent, or more, on car insurance" Another, slightly less popular gimmick is the use of a GEICO caveman. These advertisements use the tagline, "GEICO, so easy a caveman could do it". Amusingly, fictional cavemen are portrayed as being offended by the tagline in some of the commercials. A few more of the advertisements (less common in recent times) feature customer testimonials, alongside select celebrities that narrate in a humorous manner. One such example involved a "thriller" movie narrator who used his deep voice, and clever re-wording, to put a comic twist on a woman's testimonials. All in all, GEICO is known for their diverse, creative, and even entertaining advertisements.

From the business side, GEICO is owned by giant holding company Berkshire Hathaway, associated with billionaire (also on-and-off richest man in the world) Warren Buffett. Berkshire bought out GEICO in 1996 and has, since then, under the watchful eye of, one of, the best investors of all time, seen significant growth.

The company employs a unique approach in its sales by dealing with its customers mainly via telephone, and internet, eliminating most of the costs associated with a large physical presence - particularly overhead, and the expense of agents.

The company has over nine million policy holders, and insures more than sixteen million vehicles, making them the third largest private passenger auto insurer in the United States, according to their website. They are also the fastest growing, due their aggressive advertising campaigns, and their clean reputation as a company.

From a service standpoint, the company offers, through 24,000 associates, round-the-clock service, all day, and every day, all year round - public holidays included. Their claims are settled quickly and they maintain a good rapport with their customers.

In summary, GEICO has been around for over 70 years and continues to grow strong. It ensures its place in the public eye via its aggressive advertising, and careful preservation of customer goodwill through excellent service. They have even become a pop culture icon, somewhat, having been featured (or made reference to) in a number of popular television shows such as "Robot Chicken". The company has definitely earned its place has one of the top auto insurers in the United States, and possibly the provider of the most entertaining commercials!

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