With the economic effects of COVID-19 continuing to touch so many Americans, GEICO is extending its GEICO Giveback policy cancellation pause through May 31, 2020.
The company estimates the GEICO Giveback benefit to its customers will be approximately $2.5 billion.
On March 20, 2020, GEICO voluntarily announced it would pause policy cancellations due to non-payment and policy expiration through April 30, 2020. The company is extending the cancellation pause to further assist customers during this period of great uncertainty.
“As an insurer, we are used to being there for our customers at difficult times,” GEICO President and CEO Todd Combs said. “Our commitment to our customers is unwavering, and we are committed to supporting them through this unprecedented crisis.”
Earlier this month, GEICO announced it was providing a 15 percent credit to its private passenger auto, motorcycle and RV policyholders, where permitted. The GEICO Giveback is applied as policies come up for renewal between April 8 and Oct 7 (or April 8, 2020, and April 7, 2021, for 12-month policies). The credit also applies to new policies purchased through Oct. 7.
GEICO has also committed to offering maximum flexibility to policyholders who need special payment options and adjusting policies for customers driving less because of stay-at-home directives.
© 2020 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.