[1] Based on Goodwin's experience at USAA, GEICO's original business model was predicated on the assumption that federal employees, as a group, would constitute a less risky and more financially stable pool of insureds compared to the general public.

[citation needed] In 1937, the Goodwins relocated GEICO from San Antonio, Texas, to Washington, D.C., and reincorporated the company as a D.C. corporation after realizing that their business model would work best in the place with the highest concentration of federal employees.

[1] In 1951, Warren Buffett, then a Columbia University graduate student under Benjamin Graham, interviewed Lorimer Davidson (then a VP) and named GEICO "The Security I Like Best."

Davidson retired and was replaced in 1970 by Ralph Peck (President and COO)[1] and David Lloyd Kreeger (Chairman and CEO), who had been one of the other investors in 1948.

[8] In 1974 under Kreeger's leadership, GEICO began to insure the general public after real-time access to computerized driving records became available throughout the United States.

[1] To prevent GEICO from collapsing, a consortium of 45 insurance companies agreed to take over a quarter of its policies, and it was forced to issue a stock offering, thus diluting existing stockholders, to raise money to pay claims.

It took five years – during which the company shrank significantly – and a massive reorganization led by John J. Byrne and supported substantially by Buffett,[1] to set GEICO on the path to recovery.

GEICO generally deals directly with consumers via telephone and internet; however, the local agent program has more than 300 independent offices across the United States.

[12] In April 2021 a data breach was reported to have exposed customers’ driver’s license numbers through GEICO's online sales application for over a month.

GEICO is also an official sponsor of the National Hockey League and themed commercials that always feature members of the hometown Washington Capitals.

[20] In 2020, GEICO became a premier partner of the Cup Series, sharing title sponsorship rights with Busch Beer, Coca-Cola, and Xfinity.

[24] In October 2015, the Consumer Federation of California successfully sued the company for US$6 million after alleged discrimination based on occupation, education level, and other personal characteristics.

[29] In June 2022, a Missouri woman was awarded US$5.2 million after she sued the company, alleging that she had contracted a sexually transmitted disease through having sex in a car insured by GEICO.