Insurance companies provide help to reduce risk management. Insurance companies help when an uncertain event happens in people’s lives.
One party known as the insurer gives its services to the other party, and the policyholder has to pay a fixed amount to the insurer. GEICO and USAA are such companies situated in the USA.
Key Takeaways
- GEICO (Government Employees Insurance Company) offers car insurance policies to the general public, while USAA (United Services Automobile Association) caters exclusively to military personnel and their families.
- USAA is known for its excellent customer service, financial stability, and competitive rates, whereas GEICO is recognized for its extensive coverage options and various discounts.
- USAA membership has additional benefits, such as banking services and investment products, while GEICO focuses primarily on insurance products.
GEICO Car Insurance vs USAA
The difference between GEICO Car Insurance and USAA is that GEICO provides mechanism breakdown insurance and USAA does not give this insurance. There are also many other differences between these two insurance companies. Both GEICO and USAA are American insurance companies located in the United States of America and only serve in the US.
Geico is the short-term for Government Employees Insurance Company. It is an American insurance company whose headquarter is in Chevy Chase, Maryland.
Type of Geico Insurance is an Auto insurance company. It serves only in the US. Geico also makes advertisements to attract or entertain its viewers and customers.
All government employees enjoy the services provided by it.
The abbreviation used for United Services Automobile Association is USAA. The industry in which it provides its services is insurance, banking, and other financial services.
The headquarter of USAA is in San Antonio, Texas. It is also an American insurance company and only provides its services in the USA. USAA is a private company.
Comparison Table
| Parameters Of Comparison | GEICO Car Insurance | USAA |
|---|---|---|
| Founded | Two-man known as, Lillian Goodwin and Leo Goodwin founded GEICO. | A group of an army that had 25 army officers as its members, founded USAA. |
| Founder | Two-man known as, Lillian Goodwin and Leo Goodwin founded GEICO. | A group of an army that had 25 army officers as its members, founded USAA. |
| Key people | The key people GEICO have is Todd Combs, who’s playing the role of CEO for the company. | The key people USAA has are the CEO himself Wayne Peacock and chairman Thomas B. Fargo. |
| Discount | The discount given by GEICO varies according to the needs and circumstances. | The discount given by USAA is up to 30% which is a notable feature. |
| Insurance program name | The insurance program that is sold to the people by GEICO is known as DriveEasy. | The insurance program that is sold to the people by USAA is known as SafePilot. |
What is GEICO Car Insurance?
The full form of GEICO is Government Employees Insurance Company. It is an Auto insurance company and also it holds the second largest place as an insurance company.
GEICO was founded 85 years ago, in 1936. The City it is located in is San Antonio, Texas. Leo Goodwin and Lillian Goodwin were the two people who founded This insurance company.
The company in the first place is State Farm. Berkshire Hathaway is GEICO’s parent company, which Berkshire owns thoroughly.
GEICO provides its services to almost 20 million people who own motor vehicles. The number of policyholders increased in GEICO.
GEICO writes private passenger automobile insurance in almost 50 US states.
Geico uses countless agents to sell its policy. These agents are known as Field Representatives of the company.
GEICO is also known for its advertisements. It is a popular culture of the company.
It helps GEICO impress and attract more viewers who can become its future customers. The number of key people in GEICO is one, Todd Combs, who is the CEO of the company.
It provides auto insurance to its users. After some time, GEICO added a new property insurance feature and started selling umbrella coverage.
What is USAA?
The short form used for the United Services Automobile Association is USAA. It also has a different native name which is United Services Automobile Association.
But the original name that was given in its initial stage was the United States Army Automobile Association. The field of service in which USAA serves is reciprocal inter-insurance exchange.
USAA was founded 99 years ago, in June 1922. That makes it quite an older company than GEICO, but just like GEICO, its headquarter is in San Antonio, Texas.
The people who serve in the US Army are eligible to receive banking, insurance, and investing services provided by USAA.
The key people of USAA are Thomas B. Fargo, who’s the chairman of the company, and Wayne Peacock, the CEO of the company.
A group of 25 Army officers founded this insurance company to provide mutual self-insurance in case any member is unable to secure auto insurance.
Since then, the area of USAA has expanded widely in the field of banking and insurance services. All the members of the army force, whether in past or present, are eligible to get the benefits from this company.
Officers themselves or their families can enlist them. In 2018, when the list of United States corporations by total revenue came, USAA ranked 100th place among 500 other companies.
Main Differences Between GEICO Car Insurance and USAA
- GEICO gives mechanical breakdown insurance, known as MBI, for an extended car warranty. On the other hand, USAA provides coverage for leased vehicles as well as glass.
- The rating provided by Better Business Bureau is B for GEICO, while the BBB rating for GEICO is A+.
- GEICO has a higher place when it comes to pricing, with an affordable rate of $1100. In contrast, USAA can be a bit more expensive.
- According to the auto claim satisfaction score, GEICO managed to get 871 out of 1000, while the number USAA received was 890 out of 1000.
- The insurance program by GEICO can raise the rate for users. On the other hand, the USAA insurance program can not increase the rate.
- https://journals.sagepub.com/doi/abs/10.4278/ajhp.130218-quan-72
- https://www.jstor.org/stable/249458
Last Updated : 13 July, 2023
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
I am glad to see the comparison between GEICO and USAA and learn more about them.
Is this article intended to promote these companies?
This is a great detailed comparison of these insurance companies.
Insurance companies are a beneficial institution
This article provides an unbiased comparison between GEICO and USAA. I appreciate the thorough insight.