With a 14.2% share, GEICO is the second largest auto insurance company in the United States, after State Farm.
GEICO companies primarily offer private passenger auto insurance to individuals in all 50 states and the District of Columbia.
GEICO also provides insurance for motorcycles, ATVs, RVs, boats, and small commercial fleets and acts as an agent for other insurers that offer identity management, life, and homeowners and renters insurance to people who want coverages of insurance other than those offered by GEICO.
Primarily, GEICO’s marketing is done through direct response methods in which insurance applications are sent directly to companies over the Internet or by phone and, to a lesser extent, through captive agents.
GEICO conducts business through regional claims adjustment and service centers and other facilities in 39 states.
According to the company, the auto insurance business is highly competitive in the areas of price and service.
GEICO competes for private passenger auto insurance customers in the preferred, standard, and non-standard risk markets with other companies that sell direct to the customer and with companies that use agency sales forces, including State Farm, Allstate, Progressive, and USAA.
GEICO’s advertising campaigns and competitive rates contributed to a cumulative increase in voluntary policies in force of approximately 26.0% over the past five years.
According to the most recent publication from A.M, the five largest auto insurers had a combined 2020 market share of 59.7%, measured by written premiums, with GEICO’s market share being the second largest at approximately 13.5%. .
GEICO’s written premiums in 2020 were reduced by the effects of the GEICO Payback Program implemented in response to significant reductions in claim frequencies attributable to reduced driving by policyholders during the initial stages of the Covid-19 pandemic.
According to the company, other private passenger insurers’ pandemic-related premium credit programs may not have been reported as premium reductions, affecting industry data reported by A.M Best.
Since the release of that data, GEICO management estimates its current market share to be approximately 14.2 percent.