A while ago, my automobile insurance company sent me a bill for the next six months that was double what it had been previously. When I protested, they explained that because one of us had been in an accident that was, technically, our fault, they had no choice but to up our bill. So I called GEICO [the company with the cute Australian Gekko in its ads], and by god, they saved me $650!! When I renewed my registration on-line a few moments ago, I discovered for the first time what GEICO stands for -- Government Employees Insurance Co. Who knew?
Now back to serious stuff.
GEICO was founded in 1936 by Leo Goodwin and his wife Lillian to provide auto insurance directly to federal government employees and their families.[2] Since 1925, Goodwin had worked for USAA, an insurer which specialized in insuring only military personnel; he decided to start his own company after rising as far as a civilian could go in USAA's military-dominated hierarchy. Based on Goodwin's experience at USAA, GEICO's original business model was predicated on the assumption that federal employees as a group would constitute a less risky and more financially stable pool of insureds, as opposed to the general public. Despite the presence of the word "government" in its name, GEICO has always been a private corporation.
ReplyDeleteThus speaks the Wiki at least.
GEICO is now a fully owned subsidiary Berkshire Heathaway, which in turn is run by Warren Buffett. Perhaps there is such a thing as enlightened capitalism?
ReplyDeleteWow! Warren owns the Gecko? How cool is that. And I thought I was just doing it for the lizard.
ReplyDeleteBack in the early '60s, GEICO also owned retail discount-stores purportedly open only to government employees. When I first got my drivers license, I knew only one-route to get to the movie house in nearby Collingswood, NJ. Therefore, every date in my early driving career began by picking the girl up at her home, then driving to the GEICO parking lot off Rt. 130 in Camden and then driving through the lot to an exit on the opposite side of the lot that opened onto a road to Collingswood where the theater was located. I could find my way back from the theater, but not to it, without first passing through the GIECO parking lot.
ReplyDeleteThe Gekko is cool with me (they insured my first car). Still, my fondest memory is of the looks of rising discomfort on the faces of a small number of young women as they wondered what kind of nut-job would take them to GEICO on a first date?
(Now that you mention it, Prof. Stone, maybe I should switch back to them. Thanks for the memory.) -DH
Oops, Profesor Wolff. I must be stoned. My apologies. ;-).
ReplyDelete