Geico Sells 7 Millionth Auto Policy

April 21, 2006

  • April 21, 2006 at 7:22 am
    Edit says:
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    Actually, this is about them having 7 million policies in their book of business, which is a GREAT accomplishment (this either makes them the #3 private auto carrier or so close to passing Progressive that they might as well conceed #3 to GEICO at this point).
    BTW, it looks like GEICO\’s success is drawing a lot of angst from the independent agents out there—What\’s wrong, are you left out on the side of a deserted road or something (which was a great GEICO commercial by the way)?

  • April 21, 2006 at 7:26 am
    Huh? says:
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    Cancellations? Not as many State Farm or All State…..GEICO is growing FAST, State Farm and All State are either struggling to maintain their policies in force or are actually losing market share to the direct writers like GEICO and Progressive.

  • April 21, 2006 at 8:06 am
    Rodent says:
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    I think the sales agent should be rewarded
    for her participation in this milestone by having dinner with Gecko, they can feast on bbq\’d lizard or the budwiser frog.

    Compman, good to see your still posting your crap to this site

  • April 21, 2006 at 9:24 am
    tomdog says:
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    GIECO\’s churn rate is BY FAR the highest in the industry. The company gets clients but looses them faster than either State Farm or Allstate. In the long run they have a loosing business model. Even their own executives admit this, though not in public. Wiat until the FCC makes them prove that the average client saved $500 on their policy. Most single policies are barely $500 per year…they must be providing insurance for free…..what genius!

  • April 22, 2006 at 12:22 pm
    Jake P. says:
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    I hate to break it to you cricket, but the \”sales reps\” at direct writers like Progressive and GEICO operate under the exact same agents licenses as any other P&C agent.
    The growth of the direct companies is really showing that the public is smart enough to handle the purchase of their insurance without spending unnecessary additional capitol to support the salaries of the now totally obsolete and unnecessary insurance \”agent\”.
    It really isn\’t as difficult as every agent tries to make the public think. I purchased a policy off of geico.com over a year ago and was amazed at how easy it was—their on-line self help tools are incredible and the coverage advisor is so easy and helpful (my previous company never even told me how drastically underinsured I was). I was able to increase my liability limits 15x over what I was previously paying with another company (who I will leave unnamed), add UM and UIM up to 300/300 (when I had rejected it with the other company), and you know how much more I paid??? All of these additonal and greatly increased coverages only cost me an additional $10 per month.
    THANKS GEICO!!!

  • April 22, 2006 at 1:40 am
    JimnTx says:
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    Jake, do you really think for one minute that ALL of those direct writer sales reps are licensed as agents? Why do you think the companies prefer to call them sales reps and not agents? Also, did you know that lately The Lizard is acquiring agencies so they\’ll be able to offer sales through local brick and mortar shops? Apparently they finally figured out that a cute cartoon on TV won\’t sustain their growth.
    Just look at The P company. Their direct side sales shot up with double digit increases for 7-8 years and now it has plateaued. The growth looked great each year because they had started from scratch. The real retained growth in the insurance industry comes from local agents and the net helps them to service their clients better.
    Do yourself a favor and SHOP your auto policy at every renewal, because sooner or later customers with a company that spends $550 million in advertising will have to pay the tab.

  • April 21, 2006 at 2:12 am
    Compman says:
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    And the first person who called to change his policy to add a new auto back in 1936 just got his endorsement processed!

  • April 21, 2006 at 2:21 am
    maureen says:
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    And did GEICO reward Stephanie for reaching this milestone? I highly doubt it! Stephanie, you can come work for us and we will make sure you are rewarded!!

  • April 21, 2006 at 2:26 am
    A lazy friday says:
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    Compman, thanks for cracking me up.

    Maureen, she was just the one who happened to pick up the call. Its not like she solicited business and wrote 7 million policies herself. People only buy Geico if they were previously with a crappier company. Its all about rate, not service.

  • April 21, 2006 at 2:32 am
    Warren Buffet says:
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    Don\’t forget that all that TV advertising isn\’t cheap and the acquisition cost for that sale was $638.91. Good thing I have deep pockets.

    Warren



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