GEICO Announces Auto Insurance Rate Reduction for New Jersey Policyholders

Aug 09,2007 00:00 by Business-Wire

WASHINGTON--(BUSINESS WIRE)--GEICO announced today that it is reducing auto insurance rates for its policyholders in New Jersey by a statewide average rate decrease of 4.1 percent.
GEICO's decrease represents $30.8 million in savings for its New Jersey policyholders, or an average of $81 savings per year per policyholder. The changes will go into effect on Aug. 9 for new policyholders and Sept. 24 for renewal policies.

"In just three years since our return to New Jersey, we have become the third largest insurer and we have saved New Jersey policyholders an average annual savings of over $750 already," said Steve Cunningham, assistant vice president and general manager of GEICO's northeast operations. "We're glad we can provide our policyholders with even more savings, and we hope to attract new customers with our lower rates."

Cunningham continued, "Improved driver experience, which has resulted in a decrease in accidents and fewer losses for our company, is the main reason for the rate decrease coupled with our associates' hard work and dedication to our New Jersey policyholders."

Overall premium changes for individual motorists will vary based upon factors such as coverages purchased, geographic area, type of vehicle, risk characteristics, and other discounts for which they qualify. The average rate decrease for GEICO policyholders is -4.2 percent, the average for GEICO Indemnity policyholders is -3.9 percent, and for GEICO Casualty policyholders it is -4.6 percent.

GEICO (Government Employees Insurance Company) is the fourth-largest private passenger auto insurer in the United States. It provides auto insurance coverage for more than 7 million policyholders and insures more than 12 million vehicles. As a member of the Berkshire Hathaway group of companies, GEICO is rated A for financial stability by A.M. Best Company and ranked top in customer satisfaction among property and casualty insurers according to the 2006 American Customer Satisfaction Index survey. For more information, go to www.geico.com.

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Source: GEICO