GEICO auto insurance

Overview

GEICO — short for Government Employees Insurance Company — is the third-largest auto insurer in the United States. It ranked #3 among U.S. private passenger auto insurers by 2025 direct premiums written, with $42.91 billion and an 11.55% market share, according to NAIC market share data. The NAIC records it under the Berkshire Hathaway Group because GEICO has been a wholly owned subsidiary of Warren Buffett's Berkshire Hathaway since 1996.

GEICO is a direct writer: most customers quote, buy and manage policies at geico.com, in the GEICO Mobile app or by phone, though it also has local agent offices. Selling direct keeps costs down: AM Best credits GEICO with "a considerable underwriting expense advantage due to its direct business model." The company has more than 29,000 employees, 20 offices around the country, and headquarters at 7272 Wisconsin Avenue in Bethesda, Maryland. Nancy Pierce, who joined GEICO in 1986 as a claims associate, became CEO on December 8, 2025, when Todd Combs left for JPMorgan Chase.

Auto insurance is sold in all 50 states and Washington, D.C. GEICO also offers motorcycle, RV, boat, homeowners, renters, life, flood and other coverage, some of it through partner companies.

History

Leo and Lillian Goodwin founded GEICO in 1936, during the Depression, to insure U.S. government employees and military personnel. Investment banker Lorimer Davidson joined in 1948 and broadened the investor base, and in 1951 a Columbia business student named Warren Buffett bought his first GEICO shares. Davidson succeeded Leo Goodwin in 1958, and the company moved into a headquarters in Chevy Chase, Maryland, in 1959.

GEICO passed 1 million policies in force in 1964 and introduced round-the-clock phone service in 1980. Chairman Olza "Tony" Nicely began a heavy advertising push in 1993 to widen the customer base beyond government workers, and in 1996 Berkshire bought the remaining outstanding stock. The Gecko debuted in 1999 and the Caveman in 2004. GEICO entered Massachusetts in 2009, becoming available in all 50 states and D.C., and in 2010 it was the first insurer to let customers buy a policy on iPhone and Android phones. It passed 17 million policies in 2019, insuring more than 28 million vehicles, and has since moved its headquarters to Bethesda.

Auto insurance coverage

GEICO's standard coverages are liability, collision, comprehensive, medical payments, personal injury protection where required, and uninsured motorist coverage (with underinsured motorist coverage in some states). Optional coverages include emergency roadside service and rental reimbursement.

Its most distinctive add-on is mechanical breakdown insurance, which works like an extended warranty billed with the auto policy. It is available for new or leased cars less than 15 months old with fewer than 15,000 miles (36 months and 36,000 miles in some states), generally for the first owner. After a $250 deductible it covers repairs to most original mechanical parts not covered by the factory warranty, and it can be renewed for up to seven years (10 in some states) or 100,000 miles.

GEICO also offers Claim Forgiveness, which can be earned or bought in most states but is not available in California, Connecticut or Massachusetts; see accident forgiveness explained.

Discounts and programs

DriveEasy is GEICO's usage-based program. It runs inside the GEICO Mobile app and scores how hard you brake, how fast you take corners and how often you handle your phone. GEICO lists typical savings of 5% to 15%, but its disclosure says premium rates "generally will vary based on participation in the program and the driving habits logged by the app," so savings are not guaranteed. All enrolled drivers on a policy must participate, and the program is not offered in every state.

GEICO's published auto discounts and maximum potential savings:

• Clean driving record (accident-free for at least a year), up to 22%
• Multi-vehicle, up to 25% on most coverages
• Deployed driver for military members serving overseas, up to 25%
• Good student, up to 15%, plus student away at school
• Defensive driving and driver training courses (including for drivers over 55)
• Anti-lock brakes, 5% on certain coverages
• Multi-policy, homeownership, early shopper, online quote, paperless, paid in full and auto pay

Its roots show in its affinity programs: special discounts or premium reductions for military members and federal employees, and for members of more than 800 organizations and employers.

Claims

Report a claim online, in the GEICO Mobile app or at 800-841-3000; the app also handles glass-only damage, emergency road service requests and claim tracking, and GEICO Claims Express lets you check a claim with just the claim number. Roadside help is at 800-424-3426, though GEICO asks customers to request it through the app or online when call volume is high. Customers can get priority repairs through the GEICO Auto Repair Xpress program, its direct repair program.

Ratings and reputation

Financial strength. On April 16, 2026, AM Best affirmed GEICO's A++ (Superior) financial strength rating and "aaa" (Exceptional) long-term issuer credit rating with a stable outlook — the highest marks AM Best gives. AM Best cited a 2025 combined ratio of 85.5% with nearly $4.2 billion of underwriting gains on a statutory basis and support from Berkshire Hathaway. GEICO says S&P rates its companies AA+.

Results. In Berkshire's 2025 annual report, GEICO's premiums written rose 5.3% to $45.2 billion on more policies in force, but pre-tax underwriting earnings fell 12.7% to $6.82 billion from $7.81 billion in 2024, as bodily injury claim costs rose and advertising spending pushed the expense ratio up 2.7 points to 12.4. Berkshire CEO Greg Abel said earlier rate increases had restored margins "at the cost of lower retention" and warned that competitors' rate cuts may keep pressure on in 2026.

Regulatory. On November 25, 2024, GEICO agreed to pay $9.75 million to the New York Attorney General and Department of Financial Services over data breaches beginning in November 2020, in which hackers exploited its online quoting tools to obtain driver's license numbers and birth dates of about 116,000 New Yorkers.

Customer satisfaction. In the J.D. Power 2026 U.S. Auto Insurance Study, GEICO ranked second in New York (654) and the Northwest (646) and third in the Southeast (668), and beat the regional average in seven of 11 regions; it was below average in the Mid-Atlantic, Southwest and Texas. In the J.D. Power 2025 U.S. Auto Claims Satisfaction Study it scored 697, tied for 13th of 20 and just under the 700 average.

Who it suits

GEICO suits drivers who want a low-overhead insurer and are comfortable doing most things themselves online or in an app. It has the strongest possible AM Best rating, it is available everywhere, and its satisfaction scores are around or above average in most regions. Drivers who want a dedicated agent, or who expect to call a person for routine service, may find the model less comfortable.

• Strengths: A++ AM Best rating affirmed April 2026 and Berkshire Hathaway backing; sold in all 50 states and D.C.; large discounts for multiple vehicles, clean records and deployed military; mechanical breakdown insurance for new cars.
• Weaknesses: Service is built around self-service and its contact page steers customers to the app and an AI chat assistant; claims satisfaction slightly below the 2025 J.D. Power average; DriveEasy pricing depends on logged driving, so savings are not guaranteed; Claim Forgiveness unavailable in California, Connecticut and Massachusetts; a $9.75 million New York data breach penalty in 2024.

How to contact GEICO