GEICO Wants to Expand Ridesharing Policy Nationally: CEO Nicely

February 5, 2015

Giant auto insurer GEICO plans to roll out its new ridesharing insurance policy across the country, according to the company’s CEO.

“We want to insurer Uber drivers,” GEICO CEO Tony Nicely told Liz Clamanin of Fox Business News in a rare interview.

Insurance Journal reported Wednesday that the GEICO ridesharing policy has been launched in Virginia. Nicely said it has also been approved in Maryland.

He said the company hopes to roll out the product in more states.

The ridesharing product is available now to new and existing customers and covers drivers that Uber (UberX and UberXL), Lyft, Sidecar and others have approved to drive for them.

GEICO’s ridesharing product replaces the driver’s personal auto policy and provides coverage both for personal and ridesharing use. GEICO will offer the product through GEICO Commercial at a price significantly lower than taxi and commercial rates.

According to Nancy Pierce, GEICO regional vice president, the product will offer ridesharing drivers a complete product so they do not have to worry about how to report a claim, and if they chose the coverage, whether their car will be fixed and whether they’ll have medical coverage.

Nicely told Fox Business News that GEICO is prepared for the days of driverless cars. He said he believes driverless cars will reduce claims frequency but thinks that this will happen very gradually.

For the Fox Business News interview, Nicely joined his boss, Warren Buffett, CEO of Berkshire Hathaway, which owns GEICO.

Buffett called GEICO “his first love” and praised Nicely. “He is every CEO’s dream. You don’t have to worry about anything with Tony in charge,” Buffett said.

Buffet also isn’t worried about driverless cars reducing the auto insurance business. “If there are fewer accidents, that will drive down the cost of insurance and that is good for lots of Americans,” he said, adding, “We are for anything that makes cars and driving safer.”

*This article previously appeared in our sister publication Insurance Journal.