Geico Auto Insurance for Young Drivers

Auto Insurance for Young Drivers

Geico auto insurance for young drivers is reporting a large increase in its customer base for the first several weeks of 2011. Over 188,500 new customers have been added to the business since the turn of the new year, which is the best the company has seen in two years. This will likely lead to the most profitable quarter the company has seen in a long time.

While their competition has been significantly raising prices, Geico has held steady over the past year with prices not changing significantly since January 2010. Both All State and State Farm Mutual reported charging customers more at the end of last year than they were at the beginning.

Many believe that this is one of the reasons for the increase in Geico’s customer base. The company also experienced a jump in the underwriting profit, while Allstate’s underwriting profit fell nearly thirty percent. The increase in Geicos profit was up a staggering 70 percent since 2009. This is partially because of the extensive advertising Geico has done in 2010.