GEICO shutters California brick-and-mortar locations
Aug. 2, 2022
Hundreds of insurance agents have been laid off in the Golden State, several months after the insurer also discontinued phone sales. That leaves the internet as the only way to purchase a GEICO policy in that state.
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Several months after it stopped selling insurance over the phone, GEICO has closed all of its 38 California insurance offices, laying off hundreds and leaving the internet as the only option for consumers, according to an article in The Sacramento Bee.
According to The Bee article, the California Department of Insurance is monitoring GEICO’s actions.
“We continue to write policies in California, and we remain available through our direct channels for the more than 2.18 million California customers presently insured with us,” the company said in an unsigned emailed statement to The Sacramento Bee.
"GEICO hires local agents, according to its website, who must spend between $100,000 and $250,000 to open an office. The agents make their money on commissions and can only sell GEICO products," the article continued.
