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Are you insured with GEICO? Be prepared for heafty rate increases.

GEICO, which “everybody knows” saves drivers 15 percent on auto insurance, said it will raise its auto premiums after underwriting results declined in the first quarter.

The giant direct writer said its underwriting profit for the first quarter was $160 million, a decline of $193 million compared to the first quarter of 2014.

In the first quarter of 2015, GEICO experienced increases in claims frequencies and severities in several of its major coverages and its loss ratio increased to 80.1, compared to 75.8 in 2014.

“As a result, we are implementing premium rate increases as needed,” the company said in its most recent SEC filing.

Premiums written in the first quarter of 2015 were $5,886 million, an increase of 10.2 percent compared to 2014.

Losses and loss adjustment expenses incurred in the first quarter of 2015 were up 16.6 percent. Underwriting expenses were up 9.5 percent.

“The automobile insurance business is highly competitive in the areas of price and service. Some insurance companies may exacerbate price competition by selling their products for a period of time at less than adequate rates. GEICO will not knowingly follow that strategy,” the management said in its year-end 2014 filing.

The company said that a result of “an aggressive advertising campaign and competitive rates,” voluntary policies-in-force have increased about 39 percent over the past five years. (get auto insurance quotes here)

According to SNL, GEICO spends more on advertising— $1.18 billion in 2013– than any other property/casualty insurer and has been the biggest spender for years.

GEICO was ranked the second largest private passenger auto insurer, behind State Farm, in the United States in terms of premium volume in 2013 by SNL. According to A.M. Best data for 2013, the five largest automobile insurers have a combined market share of 52 percent, with GEICO’s market share being approximately 10.4 percent. Now, GEICO management said it believes that GEICO’s current market share has grown to approximately 10.8 percent.

 You need to shop your Auto insurance.  Let our agents shop for you and you can save big $$$!   Call us at 800-362-2809 (Texas, Louisiana, Oklahoma and Colorado) or visit our website at www.getagreatquote.com.  

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