Friday, June 5, 2015
9 big auto insurance companies in the United States
1. Geico (Financial Strength + Issuer Credit aaa)
There is no doubt that big companies, for myself, the liability is not very expensive, mainly in the collision, 500 deductible probably to more than 200, so this is why I want to change a company, in addition, for a large company, there is a benefit when you have accident or ticket, insurance cost may rise, but not too much, after I buy the insurance, there are 2 pieces a violation ticket, one is red light, a driving permit (... very embarrassed, you must not be the case), now the policy to renew, premium feeling and not risen, so people think that, if your economy is comfortable, can choose a big company or in big companies, so that when you have an accident, when the claim generally handle more quickly, don't like the small company will think of some way to find loopholes to give you the money.
2. The Progressive (Financial Strength A + Issuer Credit aa)
The same big company, but it's very strange, I LD in the 500 less than all risks, but in geico will more than 1000, I in the more than 900, in geico is less than 600, very strange, ha ha.Also is that sentence, the company credibility is no doubt that, depending on how much you can quote, less is ok.
3. The State Farm (Financial Strength + Issuer Credit aa +)
Possible reason, because it is a state in our state, state farm is mainly in the form of an agent to operate, after I quote online, agent will make a phone call to ask the next day, still more enthusiasm, also check the review on the Internet, feel is good, but the name is a little soil, so never thought before, may we use the insurance company most people don't, anyway, the above three are a big company, as long as the premium high, in the face of three choose a absolutely is the best choice.
4. The AAA auto insurance
Triple A, also have A car, but different from other companies, the function is the agent of all, however, when I make A phone call to quote was told more than 3 years must hold A license to have the qualification to quote his home insurance, so only give up.See review online, said the premium for the young is very competitive, can go to quote on 3 years driving experience, should be good.
5. Allstate Auto Insurance, American Familiy, at Erie Insurance and Farmers, the 21 st Century
This several seems to be ok, compared with geico popularity to almost, but reputation is good, go checking on specific to go Am Best, in addition, at Erie Insurance in our state, and there is no California, coverage is not very big.Allstate to price is cheaper, recently have preferential: People who switched to Allstate saved an average of $396 per year. The Quote Now!The American Family your point...Give me 21 st is close to 800, this reputation is pretty good.
6. Gmac B++ (BBB), Esurance (A - A -), Shelter (A, A +), Safeco Nationwide (A, A) (A +, aa -)
It's five I think quote out fairly cheap, have no money people can have a good think about this a few. One of the most recommended Gmac, feeling is in the car insurance company is not particularly big, but can also be user evaluation, additional insurance cost is not high, I have two tickets, telephone quote can also cheaper than geico 2, 30 dollars, but the company is not high on the Am Best.
Esurance (Get a Free Car Insurance Quote) is now the rapid development of the Insurance company, seems to be set up in 98.Such a small company, the most typical characteristic is that if you don't have any accidents and ticket, maybe you can quote the cheap very cheap, I didn't write when I was in his quote online ticket, all risks as long as 380, but the phone after a violation, is increased to more than 800, in addition the company reputation is particularly bad, searched on yahoo answer, basic it is negative news, mainly claims to money not feeling.So no any bad history, and the lack of money, or you can think about this.
Shetler is a good company, but the key seems to be not on the car insurance, online quote all risks about half a year
More than 400, but know that I had a permit to drive, when the telephone quote directly to the, give the reason for this is that mainly aimed at his home without any accident, and a major violation of insurance, insurance cost will be much lower, in addition, the prestige is good, the bad is my estimated that if the day that you had an accident, maybe it will be to cancel his home, then you'll be up shit creek.
7. Auto - Owner Insurance (+ aa +)
Is also looking for agent, very warm, very good, the results the and Shelter a little class, the agent said his home is not mainly for car insurance, and the user is mainly for the elderly, the premiums for the young Not very cheap, give me all risks premium over 5000 half a year, but you can see, Am Best highly, perhaps, we can consider the old.
Auto extended warranty
Mention extended warranty, you may be the first to think of, home appliances, digital and other everyday items after the warranty period, manufacturer promised to extend the period of a certain service plans to consumers.Now, with car popularity soared, maintenance also gradually becomes the owner of a "compulsory course".Warranty period for car companies to provide excellent, free warranty service, owners see in the eye, of course, in my heart.But when the warranty period will be through, whether to add a little cost to choose car extended warranty, are becoming a lot of consumers about one thing.
Have no car extended warranty?Although many automakers are pushing the service projects, but the car of fidelity for consumers to save more transport cost?In conclusion, we need extended warranty on car sense have a probably understanding.
Second, the extended warranty can guarantee what car parts, how long the extended warranty time.In dongfeng nissan "N" extended warranty product system as an example, the scope of warranty with all parts of the extended warranty or engine + transmission for vehicle powertrain extended warranty.In addition, in the whole series of dongfeng nissan cars / 100000 km long warranty 3 years, based on the extended warranties to 4/120000 km or 150000 km/for five years.At the same time, the extended warranty need new car sales for march / 5000 kilometers, to keep the car extended warranty requires three years/within 100000 kilometers.
After understanding the car extended warranty, believes that many consumers mind, is just the problem: you're gonna have no car extended warranty?In dongfeng nissan "N extended warranty", for example, when learned that the "four" N extended warranty advantage, I believe you will drain the extended warranty of suspicious about cars.
To save money.If they bought the dongfeng nissan (including nissan and qichen) any vehicles, the vehicle extended warranty period, no matter how high maintenance costs, shall be borne by the dongfeng nissan.The benefits of such is the pits, don't bother to find cheaper don't have to worry about maintenance quality.Thus, the owner can control counter mounting maintenance costs, extended warranty scope automotive quality failure 100% of free maintenance.
Have no car extended warranty?Although many automakers are pushing the service projects, but the car of fidelity for consumers to save more transport cost?In conclusion, we need extended warranty on car sense have a probably understanding.
Second, the extended warranty can guarantee what car parts, how long the extended warranty time.In dongfeng nissan "N" extended warranty product system as an example, the scope of warranty with all parts of the extended warranty or engine + transmission for vehicle powertrain extended warranty.In addition, in the whole series of dongfeng nissan cars / 100000 km long warranty 3 years, based on the extended warranties to 4/120000 km or 150000 km/for five years.At the same time, the extended warranty need new car sales for march / 5000 kilometers, to keep the car extended warranty requires three years/within 100000 kilometers.
After understanding the car extended warranty, believes that many consumers mind, is just the problem: you're gonna have no car extended warranty?In dongfeng nissan "N extended warranty", for example, when learned that the "four" N extended warranty advantage, I believe you will drain the extended warranty of suspicious about cars.
To save money.If they bought the dongfeng nissan (including nissan and qichen) any vehicles, the vehicle extended warranty period, no matter how high maintenance costs, shall be borne by the dongfeng nissan.The benefits of such is the pits, don't bother to find cheaper don't have to worry about maintenance quality.Thus, the owner can control counter mounting maintenance costs, extended warranty scope automotive quality failure 100% of free maintenance.
Comprehensive interpretation of vehicle insurance premium rate floating space
No bonus-malusNo bonus-malus, motor vehicle insurance refers to according to insurance car insurance period specified in be or get out of danger, add, can enjoy the benefit of the no indemnity insurance premium from the above, discount rate based on fixed number of year increasing no reparations.
Reduce the insurance premium rate with no reparations fixed number of year accumulation, but the cumulative up to three years.That did not happen last year during the period of insurance indemnity, 10% discount for the amount of this annual renewal is planted;Did not happen during the period of insurance to compensate for 2 years, 20% discount for the amount of this annual renewal is planted;Three consecutive years did not happen during the period of insurance indemnity, 30% discount for the amount of this annual renewal is planted;For more than 3 years did not happen during the period of insurance indemnity, this year's renewal insurance amount will be 30% discount.
Customer loyaltyCustomer loyalty is a measure of the renewal, shall pay the premium discount coefficient.That is, when the owner in an insurance company insured business car insurance from the previous year, and each year from the policy too often, when the owner this annual renewal of insurance in the insurance company, the insurance company will give the owner a customer loyalty premium discount coefficient, the coefficient is quite so 10% discount.
Safe drivingIf the owner doesn't have any traffic violations in the previous insurance year record, add, can enjoy preferential, safe driving up to 10% discount coefficient.
The average annual mileageIf owners have insured car driving, average annual mileage is less than 30000 kilometers, the average annual mileage discount after the renewal, discount coefficient of up to 10%.
Conclusion:Floating coefficient about car insurance rates, there are a number of other provisions, including buoyancy coefficient.This article about just a few of these common down coefficient introduced, mainly in order to make the general owners know that to meet a variety of conditions, can enjoy the corresponding insurance cost is favorable, and conscious to "save" the "should not spend money".
But because there are many conditions can lead to car insurance rate floating, and most of the time, the owner about her past one or several year's driving and claims records and hard to remember, so, even if the owner have a certain knowledge of car insurance rates, and complete the precise calculation of car insurance rate is also a very complicated problem.This case, through a reliable insurance companies for accurate car insurance quote, fully respect the consumers' rights and interests is particularly necessary.
Reduce the insurance premium rate with no reparations fixed number of year accumulation, but the cumulative up to three years.That did not happen last year during the period of insurance indemnity, 10% discount for the amount of this annual renewal is planted;Did not happen during the period of insurance to compensate for 2 years, 20% discount for the amount of this annual renewal is planted;Three consecutive years did not happen during the period of insurance indemnity, 30% discount for the amount of this annual renewal is planted;For more than 3 years did not happen during the period of insurance indemnity, this year's renewal insurance amount will be 30% discount.
Customer loyaltyCustomer loyalty is a measure of the renewal, shall pay the premium discount coefficient.That is, when the owner in an insurance company insured business car insurance from the previous year, and each year from the policy too often, when the owner this annual renewal of insurance in the insurance company, the insurance company will give the owner a customer loyalty premium discount coefficient, the coefficient is quite so 10% discount.
Safe drivingIf the owner doesn't have any traffic violations in the previous insurance year record, add, can enjoy preferential, safe driving up to 10% discount coefficient.
The average annual mileageIf owners have insured car driving, average annual mileage is less than 30000 kilometers, the average annual mileage discount after the renewal, discount coefficient of up to 10%.
Conclusion:Floating coefficient about car insurance rates, there are a number of other provisions, including buoyancy coefficient.This article about just a few of these common down coefficient introduced, mainly in order to make the general owners know that to meet a variety of conditions, can enjoy the corresponding insurance cost is favorable, and conscious to "save" the "should not spend money".
But because there are many conditions can lead to car insurance rate floating, and most of the time, the owner about her past one or several year's driving and claims records and hard to remember, so, even if the owner have a certain knowledge of car insurance rates, and complete the precise calculation of car insurance rate is also a very complicated problem.This case, through a reliable insurance companies for accurate car insurance quote, fully respect the consumers' rights and interests is particularly necessary.
Auto insurance Do you know how to choose?
It seems to many people, as long as the selected car, insurance is very simple.But really want to select, in addition to insurance, coverage, third party risks, exactly what insurance varieties to choose from.Auto insurance is so complex that it wasn't easy to pick up also.Here, we specially comb, for everybody reference.
Exactly what car insuranceBefore buying car insurance, you must first make sure, what are the content of car insurance?Motor vehicle insurance generally includes insurance and commercial insurance, business insurance includes both basic and additional risks.Basic is divided into car loss danger and third party liability insurance, the whole vehicle pilfer (pilfer), the liability of the personnel on the car (the responsibility of the driver and passenger liability insurance).
Additional risks include glass is alone and broken danger, scratches, driving loss danger, spontaneous combustion wade risks, without fault liability insurance, car goods drop liability insurance, the car stops loss danger, new equipment loss danger, regardless of the danger of the engage by special arrangement that avoid compensate, etc.Glass is alone and broken danger, loss danger, newly added equipment loss danger, spontaneous combustion is the additional risk of car loss danger, must first be insured car loss danger to cover the additional risk.Vehicle liability insurance and no-fault liability insurance, car goods drop liability insurance, etc., is the additional risk of danger of responsibility of a third party, must be covered by insurance against liability for third party to cover these additional risk;Each risks regardless of the franchise can be independent insurance.
Insurance not negotiableCheSun, a third party is indispensableInsurance, full name "of the compulsory motor vehicle traffic accident liability insurance", is China's first by the legal provisions of the state shall practise a system of compulsory insurance.In other words, motor vehicles, including cars, this will have to buy insurance.
In addition, coverage, third party liability insurance is also indispensable.In motor vehicle insurance, vehicle insurance and third party liability insurance constituted the main danger to plant, and in cooperation with a number of additional risks, the common customers with various dangerous security service for insurance.Car loss danger of insurance mark, is all kinds of motor vehicle body and its parts, equipment, etc.And third party liability insurance (all risks) insurance business three is the loss of the insurance company to a third party liability insurance coverage.Refers to the third party other than the policy-holder, insurant, underwriter, because of insurance car accident victims to a third party who had suffered losses.
Additional risks to our strengths
In addition to the above basic risk for various, dazzling additional risks, you can follow the signals, after all is business risk, is to want money to buy.
Pilfer full name is the whole vehicle pilfer, mean lost a wheel, mirrors that can't compensate.Pilfer claim request: car stolen, to the local police department at or above the county level shall, 3 months did not find, can require adjustments.
Wading risk also called engine special insurance.Vehicles under the condition of immersion, coverage can pay except engine vehicles damaged part, and the resulting engine damage is only wading insurance could compensate.But if flooded after the owner was forced to start the engine and cause damage, so even if bought wading insurance, the insurance company will not compensate.
And glass, scratches, spontaneous combustion risk and so on, belong to additional risks, or according to oneself circumstance to consider buying.
Exactly what car insuranceBefore buying car insurance, you must first make sure, what are the content of car insurance?Motor vehicle insurance generally includes insurance and commercial insurance, business insurance includes both basic and additional risks.Basic is divided into car loss danger and third party liability insurance, the whole vehicle pilfer (pilfer), the liability of the personnel on the car (the responsibility of the driver and passenger liability insurance).
Additional risks include glass is alone and broken danger, scratches, driving loss danger, spontaneous combustion wade risks, without fault liability insurance, car goods drop liability insurance, the car stops loss danger, new equipment loss danger, regardless of the danger of the engage by special arrangement that avoid compensate, etc.Glass is alone and broken danger, loss danger, newly added equipment loss danger, spontaneous combustion is the additional risk of car loss danger, must first be insured car loss danger to cover the additional risk.Vehicle liability insurance and no-fault liability insurance, car goods drop liability insurance, etc., is the additional risk of danger of responsibility of a third party, must be covered by insurance against liability for third party to cover these additional risk;Each risks regardless of the franchise can be independent insurance.
Insurance not negotiableCheSun, a third party is indispensableInsurance, full name "of the compulsory motor vehicle traffic accident liability insurance", is China's first by the legal provisions of the state shall practise a system of compulsory insurance.In other words, motor vehicles, including cars, this will have to buy insurance.
In addition, coverage, third party liability insurance is also indispensable.In motor vehicle insurance, vehicle insurance and third party liability insurance constituted the main danger to plant, and in cooperation with a number of additional risks, the common customers with various dangerous security service for insurance.Car loss danger of insurance mark, is all kinds of motor vehicle body and its parts, equipment, etc.And third party liability insurance (all risks) insurance business three is the loss of the insurance company to a third party liability insurance coverage.Refers to the third party other than the policy-holder, insurant, underwriter, because of insurance car accident victims to a third party who had suffered losses.
Additional risks to our strengths
In addition to the above basic risk for various, dazzling additional risks, you can follow the signals, after all is business risk, is to want money to buy.
Pilfer full name is the whole vehicle pilfer, mean lost a wheel, mirrors that can't compensate.Pilfer claim request: car stolen, to the local police department at or above the county level shall, 3 months did not find, can require adjustments.
Wading risk also called engine special insurance.Vehicles under the condition of immersion, coverage can pay except engine vehicles damaged part, and the resulting engine damage is only wading insurance could compensate.But if flooded after the owner was forced to start the engine and cause damage, so even if bought wading insurance, the insurance company will not compensate.
And glass, scratches, spontaneous combustion risk and so on, belong to additional risks, or according to oneself circumstance to consider buying.
Auto insurance
How to buy auto insurance?Many novice while driving, the frequency of accidents are relatively high, so many owners because of worry and no experience, so will be able to buy the insurance.And some owners think that in addition to the insurance, the rest of the insurance are useless, in fact, the two are not.How to buy auto insurance?
1, the first is to buy insuranceInsurance is stipulated by the state mandatory coverage, all motor vehicles must be bought.But many owners have some misunderstandings on the insurance, they think that if they bought a strong risk, once appear, traffic accident, it can be responsible for all to the insurance company.Actually the fact is not the case, insurance is mainly to the insured vehicle in the traffic accident is to suffer property damage, casualties, compensate in the liability limit amount of compulsory liability insurance, but does not include the local staff and the insured.
2, the second is to buy three basic business risksThree basic business risks is the so-called coverage, third party liability insurance, liability insurance of the personnel on the car.
(1) coverageMore than novices, in the process of driving, hard to avoid can have some small ceng, so need to purchase a coverage.Coverage is mainly refers to the insured vehicle in the event of insurance accident, under the condition of vehicles damaged, the insurance company will compensate in a reasonable scope.But it is important to note that coverage does not include the stolen, robbed, wheel separately damage, etc., so, not all the modes can be repaid after the accident happened.
(2) the third party liability insuranceThe so-called third party liability insurance is insurance car accident led to the person, property damage, should be in charge of by insurant lawfully, compensation by insurance company.
At present, the third party liability insurance as required by the insurance company's compensation mainly has 50000 yuan, 100000 yuan, 150000 yuan, 200000 yuan, 300000 yuan, 500000 yuan, 1 million yuan and 1 million yuan of above.
3) the liability of the personnel on the carResponsible for the compensation of insurance car traffic accident caused by the default of casualties.The amount of this danger to plant also choose by owners.From the current coverage, amount, in the majority with 10000 ~ 50000 yuan per seat, the driver and passengers of the insurance is generally not exceed insurance car seats of check and ratify.
1, the first is to buy insuranceInsurance is stipulated by the state mandatory coverage, all motor vehicles must be bought.But many owners have some misunderstandings on the insurance, they think that if they bought a strong risk, once appear, traffic accident, it can be responsible for all to the insurance company.Actually the fact is not the case, insurance is mainly to the insured vehicle in the traffic accident is to suffer property damage, casualties, compensate in the liability limit amount of compulsory liability insurance, but does not include the local staff and the insured.
2, the second is to buy three basic business risksThree basic business risks is the so-called coverage, third party liability insurance, liability insurance of the personnel on the car.
(1) coverageMore than novices, in the process of driving, hard to avoid can have some small ceng, so need to purchase a coverage.Coverage is mainly refers to the insured vehicle in the event of insurance accident, under the condition of vehicles damaged, the insurance company will compensate in a reasonable scope.But it is important to note that coverage does not include the stolen, robbed, wheel separately damage, etc., so, not all the modes can be repaid after the accident happened.
(2) the third party liability insuranceThe so-called third party liability insurance is insurance car accident led to the person, property damage, should be in charge of by insurant lawfully, compensation by insurance company.
At present, the third party liability insurance as required by the insurance company's compensation mainly has 50000 yuan, 100000 yuan, 150000 yuan, 200000 yuan, 300000 yuan, 500000 yuan, 1 million yuan and 1 million yuan of above.
3) the liability of the personnel on the carResponsible for the compensation of insurance car traffic accident caused by the default of casualties.The amount of this danger to plant also choose by owners.From the current coverage, amount, in the majority with 10000 ~ 50000 yuan per seat, the driver and passengers of the insurance is generally not exceed insurance car seats of check and ratify.
What car insurance cover
For the new owner, can through what channels to buy car insurance, which for the most cost-effective?Is a a issue for us, is also a more headaches.So, let's to talk about car insurance for this problem, what is the most cost-effective way is best for you?
Car insurance way of buying five kinds, respectively is phone insurance, online insurance, 4 s shop to insure against insurance, insurance agent and counter them.
A. Phone cover painted painted painted painted recommended index (u)
Phone insurance is currently the most popular way of insurance, and insurance company one of the main way of insurance.Various telephone car insurance covered traffic radio advertising and believe that you have not unfamiliar, even advertisement will carry on the back.
Advantage: phone cover is the biggest advantage of low cost, convenient, save a lot of intermediate link, make a phone call to inquiry, payment, single, and there will be staff door-to-door service, small gifts are also very useful, and was deeply loved by many owners today.
Disadvantage: the owner before the insured need to have some knowledge of insurance coverage, not to blindly protect.Telephone car insurance in the center of the insurance claim to the need to go fee, less straight compensate outlets.Not all insurance companies insurance telephone connection.
Price: business risk price 15%.
2. Online insurance painted painted painted painted recommended index (u)
Owners can login by the insurance company's official website directly for what you want insurance project, and in the online inquiry and pay a fee.
Advantage: insurance coverage, the content, terms such as content is clear at a glance.At the same time, online insurance rates for larger discount.After the insured will send the policy in person to your hands.
Disadvantage: the same phone cover, into the center of fee fee, need to the owner of the straight loss points less.When protecting to see, be careful go fishing sites.Not all insurance companies opened online insurance business.
Price: online marketing business risk discount 15%.
5. The counter cover painted recommended index (u)
Traditional way of insurance, the owner needs to carry documents, procedures to the insurance company's business hall counter to buy insurance.
Advantage: the most secure, the owner can be rest assured to buy.If the owner to complete formalities, can complete on the spot.
Disadvantage: procedure is tedious, not only the owners need to carry a variety of documents, you have to personally run errands, dare to have to line up much here, which waste a lot of time and energy.
Price: small discount.
Car insurance way of buying five kinds, respectively is phone insurance, online insurance, 4 s shop to insure against insurance, insurance agent and counter them.
A. Phone cover painted painted painted painted recommended index (u)
Phone insurance is currently the most popular way of insurance, and insurance company one of the main way of insurance.Various telephone car insurance covered traffic radio advertising and believe that you have not unfamiliar, even advertisement will carry on the back.
Advantage: phone cover is the biggest advantage of low cost, convenient, save a lot of intermediate link, make a phone call to inquiry, payment, single, and there will be staff door-to-door service, small gifts are also very useful, and was deeply loved by many owners today.
Disadvantage: the owner before the insured need to have some knowledge of insurance coverage, not to blindly protect.Telephone car insurance in the center of the insurance claim to the need to go fee, less straight compensate outlets.Not all insurance companies insurance telephone connection.
Price: business risk price 15%.
2. Online insurance painted painted painted painted recommended index (u)
Owners can login by the insurance company's official website directly for what you want insurance project, and in the online inquiry and pay a fee.
Advantage: insurance coverage, the content, terms such as content is clear at a glance.At the same time, online insurance rates for larger discount.After the insured will send the policy in person to your hands.
Disadvantage: the same phone cover, into the center of fee fee, need to the owner of the straight loss points less.When protecting to see, be careful go fishing sites.Not all insurance companies opened online insurance business.
Price: online marketing business risk discount 15%.
5. The counter cover painted recommended index (u)
Traditional way of insurance, the owner needs to carry documents, procedures to the insurance company's business hall counter to buy insurance.
Advantage: the most secure, the owner can be rest assured to buy.If the owner to complete formalities, can complete on the spot.
Disadvantage: procedure is tedious, not only the owners need to carry a variety of documents, you have to personally run errands, dare to have to line up much here, which waste a lot of time and energy.
Price: small discount.
GEICO
Geico is America's fourth largest car insurance company, warren buffett's Berkshire Hathaway investment company partner.Geico, namely the government employees insurance company, car insurance company is America's fourth largest private clients, about 6 million people have insurance customers.At the same time, is the largest direct selling insurance company.
The founder of GEICO is 50 years old accounting Leo, goodwin and his wife.GEICO's business model is by cutting most of the cost of sales, reduce the risk of subscription make selling cheaper car insurance.At first, the couple to work 12 hours a day, 365 days a year, but only $250 a month's salary.At night, they make policy-holder list on the table;Weekend, drive to the military base to young government staff to send low price policy.Because to avoid the agent and agent cost, cost 30% less than its competitors GEICO's policy -- 40%.
Under the hard work of the couple, the company won the rapid progress in early.Goodwin, however, only a 25% stake.Is the largest investor in the ford voss bankers cliffs, leah, accounted for 55%;A deceased relatives of a. d. leah accounted for 20%.1948, leah, who is eager to put the stock cash, struggling to find buyers in Wall Street, finally found the graham.
Leah family offer is lower than the book value of 10%.At that time, GEICO insurance annual revenue between $2 million to $3 million, 1946, earnings per share is $1.29, 1947 is $5.89.Previously, graham is not like insurance, but the great potential of GEICO and reasonable quotation attracted him.He said: "one thousand the acquisition of the result is bad, we can always clearing it.
In the end, graham was bought for $475 a share half of the shares of GEICO - 1500 shares.After the event, graham and his talent that the partnership, investment company has it is illegal to insurance company's shares more than 10%.The securities and exchange commission (SEC), asking them to cancel the deal.Leah family, however, refused to take back the stock.As a result, the SEC agreed with graham the shares to shareholders of the company.As a partner, graham was allowed to retain their own shares, to participate in the management of the GEICO.
In July 1948, distribution of the shares, GEICO, the market price is $1.0827 per share, at the end of this year is $30.
Later, the company a market capitalization of more than $1 billion.It was an accident.However, graham concludes, "- in luck, or behind a key decision, must be carefully prepared and trained as a guarantee. A person must have a power and prestige, opportunity will knock at his door. A man must have the means, judgment and determination to take advantage of these opportunities."
The founder of GEICO is 50 years old accounting Leo, goodwin and his wife.GEICO's business model is by cutting most of the cost of sales, reduce the risk of subscription make selling cheaper car insurance.At first, the couple to work 12 hours a day, 365 days a year, but only $250 a month's salary.At night, they make policy-holder list on the table;Weekend, drive to the military base to young government staff to send low price policy.Because to avoid the agent and agent cost, cost 30% less than its competitors GEICO's policy -- 40%.
Under the hard work of the couple, the company won the rapid progress in early.Goodwin, however, only a 25% stake.Is the largest investor in the ford voss bankers cliffs, leah, accounted for 55%;A deceased relatives of a. d. leah accounted for 20%.1948, leah, who is eager to put the stock cash, struggling to find buyers in Wall Street, finally found the graham.
Leah family offer is lower than the book value of 10%.At that time, GEICO insurance annual revenue between $2 million to $3 million, 1946, earnings per share is $1.29, 1947 is $5.89.Previously, graham is not like insurance, but the great potential of GEICO and reasonable quotation attracted him.He said: "one thousand the acquisition of the result is bad, we can always clearing it.
In the end, graham was bought for $475 a share half of the shares of GEICO - 1500 shares.After the event, graham and his talent that the partnership, investment company has it is illegal to insurance company's shares more than 10%.The securities and exchange commission (SEC), asking them to cancel the deal.Leah family, however, refused to take back the stock.As a result, the SEC agreed with graham the shares to shareholders of the company.As a partner, graham was allowed to retain their own shares, to participate in the management of the GEICO.
In July 1948, distribution of the shares, GEICO, the market price is $1.0827 per share, at the end of this year is $30.
Later, the company a market capitalization of more than $1 billion.It was an accident.However, graham concludes, "- in luck, or behind a key decision, must be carefully prepared and trained as a guarantee. A person must have a power and prestige, opportunity will knock at his door. A man must have the means, judgment and determination to take advantage of these opportunities."
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