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GEICO Direct: Auto Insurance Rate Decreases for California

29 September 1998

GEICO Direct Announces Auto Insurance Rate Decreases for California Policyholders

    WASHINGTON, Sept. 29 -- GEICO Direct today announced auto
insurance rate decreases for its GEICO, GEICO General, GEICO Indemnity and
GEICO Casualty policyholders in California. GEICO insures nearly 200,000
policyholders in California.
    A rate decrease that averages 3.1 percent for GEICO, GEICO General and
GEICO Indemnity policyholders will go into effect on November 20, 1998, for
new business and policy renewals. A 7.4 percent rate decrease for GEICO
Casualty policyholders went into effect on August 1, 1998, for new business
and policy renewals.
    Over the past 18 months in California, GEICO Indemnity policyholders have
had rate reductions of 33 percent, and GEICO Casualty policyholders have had
rate reductions of 24 percent. In the same period, GEICO and GEICO General
policyholders have had rate reductions of approximately 16 percent.
    "Mild weather, safer cars, safer drivers and our efforts to control loss
costs have all led to fewer and less severe accidents and help to reduce
insurance costs," said Donald R. Lyons, regional vice president. "We are
pleased to pass these savings on to our California policyholders and new
customers who call us for free rate quotes."
    GEICO Direct uses television, radio, print media and direct mail to
attract customers to call its toll free number 1-800-841-3000, and keeps its
rates low by dealing directly with the customer. It is the premier auto
insurer offering sales and claim services 24 hours a day, seven days a week.
In California, GEICO's policies have grown by 35 percent in the past 12
months. Nationally, GEICO Direct insures more than 3 million policyholders and
over 4.5 million automobiles.
    GEICO Corporation is the parent company of Government Employees Insurance
Company, GEICO General, GEICO Indemnity and GEICO Casualty, which insure
private passenger automobiles and provide homeowner and other types of
insurance for qualified applicants. The companies are known collectively as
GEICO Direct.