GEICO's Mechanical Breakdown Insurance makes history with sale of one millionth policy in Arizona

Business Wire, August 2, 2006

WASHINGTON -- GEICO sold its one millionth mechanical breakdown insurance policy recently and used the occasion to remind auto owners of the benefits of this unique coverage. GEICO's mechanical breakdown insurance (MBI) is an all-risk policy designed to eliminate the need for an extended warranty from the auto dealer. After a $250 deductible on a covered loss, GEICO MBI covers repairs to all mechanical parts of the car except for maintenance and wear and tear.

Jack Chumadevsky's GEICO team sold the policy to an Arizona customer living in Coolidge, Ariz.

"Our office puts in 110 percent when working with every single policyholder," said Chumadevsky. "Selling all policies, including MBI, is all about giving our customers the best service they can get."

Suzanne Worthen, GEICO's assistant vice president of the MBI product line, said, "I want to thank not only Jack, but the many other GEICO associates who have helped MBI grow to the size it is today. Our MBI provides more extensive protection and is less expensive than the typical dealer extended warranty. In the long run, our policy saves auto owners money because they pay only a small premium each policy period instead of a large lump-sum payment up front. The idea is to protect our MBI policyholders from being saddled with unanticipated and expensive repair bills."

This is the second in a series of celebrations for Chumadevsky's office, which won the Rookie GFR of the Year Award for 2005 for their outstanding work in sales, service, marketing and teamwork. Chumadevsky manages the GEICO field representative's office in Tempe, Ariz.

GEICO associates around the country participated in a policyholder watch contest to guess when the one millionth MBI policy would be reached. Associates in offices around the country who were closest to the date and time earned prizes. Chumadevsky will receive a reward as well for his success.

As GEICO CEO Tony Nicely has stated, "Mechanical breakdown insurance buys peace of mind. It is a trusted product that customers like and need. The sale of our one millionth MBI policy is a sign of its growing importance for auto owners."

For more information about mechanical breakdown insurance, please visit http://www.geico.com/auto/safety/mbi.htm.> GEICO (Government Employees Insurance Company) is the fourth-largest private passenger auto insurer in the United States. It provides auto insurance coverage for more than 7 million policyholders and insures more than 11 million vehicles. GEICO is a member of the Berkshire Hathaway group of companies. GEICO provides consumers with sales, service and claims capabilities on its geico.com Web site. Consumers may also contact the company at its toll free 1-800-841-3000 number. For more information, go to www.geico.com.