One frequently asked question we often get is this: Is GEICO
a good car insurance company?
The answer is primarily "yes" and we are going to be exploring how GEICO insurance company became the second largest car insurance company in the United States.
How GEICO started
The Government Employees Insurance Company started out in 1936
by Leo Goodwin who was a former employee of USAA and his wife Lilian.
Leo Goodwin realized that federal employees, as a group, would constitute a less risky and more financially stable pool of policy compared to the general public and would make better than average drivers, with this assumption he started out GEICO auto insurance company. Despite the presence of the word "government" in its name, GEICO insurance company has always been a private corporation not affiliated with any U.S. government organization.
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Goodwin targeted government employees as people who were likely to be responsible and to have a steady income. Since the largest pool of government employees in one place was in Washington, DC, Goodwin and his wife, Lillian, moved to the city in 1
GEICO set up offices in the Investment Building at 15th and K Streets in the northwest quadrant of the city. Once in Washington, Goodwin and his wife worked tirelessly to make their fledgling enterprise a success.
They labored 12 hours a day, 365 days a year, establishing principles to select good drivers and delivery out of direct mail solicitations to government employees and military personnel.
GEICO's direct mail operations took the place of sales force of insurance agents and helped to keep the company's rates low. On weekends, Goodwin goes to local military bases and personally solicited customers, or hand-written responses to customer inquiries and complaints