GEICO Providing $2.5 Billion to Customers Through Policy Credits
Chevy Chase, Md., April 10, 2020 – GEICO is providing a 15 percent credit to its auto and motorcycle customers as their policy comes up for renewal between April 8 and Oct 7. The credit will also apply to any new policies purchased during this period. The credit is part of GEICO's ongoing efforts to assist customers during this unprecedented time.
The average auto policy has a semi-annual premium of about $1,000 and generally covers more than one vehicle. This means GEICO expects credits to average about $150 per auto policy and $30 per motorcycle policy. The company estimates the benefit to its 18 million auto and one million motorcycle customers will be approximately $2.5 billion.
Current customers can expect to see the discount when they renew. Customers do not need to take any action to receive this credit.
Shelter in place policies have reduced driving significantly. Vehicle accidents are down considerably, and although GEICO expects a return to near normal once the impacts of COVID-19 subside, GEICO remains committed to serving its customers' changing needs in the best way it can.
"This ongoing crisis has widespread effects that will linger. That is why we wanted to give this credit for at least six months," said GEICO President and CEO Todd Combs. "Our customers have been loyal, and we are committed to doing all we can to help them."
Last month, GEICO announced it was pausing cancellations of coverage due to non-payment and policy expiration through at least April 30, 2020. Beyond that, the company has committed to offering maximum flexibility to policyholders who need special payment options as well as transitioning nearly all of its associates to work from home to continue providing the 24/7 service it is known for.
GEICO (Government Employees Insurance Company), the third-largest auto insurer in the U.S., was founded in 1936 and insures more than 27 million vehicles in all 50 states and the District of Columbia. A member of the Berkshire Hathaway family of companies, GEICO employs more than 38,000 associates countrywide. GEICO constantly strives to make lives better by protecting people against unexpected events while saving them money and providing an outstanding customer experience. Along with personal auto insurance, commercial auto and personal umbrella coverages are also available. Homeowners, renters, condo, flood, identity theft, term life, and more coverages are written through non-affiliated insurance companies and are secured through the GEICO Insurance Agency, LLC. Visit geico.com for a quote or to learn more.