GEICO closes all 38 offices in California and ends insurance sales over the phone, resulting in layoffs of hundreds of workers: State officials ‘monitoring’ situation to ‘ensure customers are protected’
- GEICO is one of the largest insurance companies in the United States
- The company is reportedly closing all 38 of its California agent offices
- GEICO said the company will still offer policies directly online
- GEICO has not released reasons why the offices are closed or if more are expected
GEICO, one of the largest insurance companies in the United States, has closed all 38 of its offices in Californiawhich resulted in hundreds of layoffs.
California customers hoping to walk into a GEICO office to sign up for a policy are out of luck, the Sacramento Bee reported, as several were denied this week.
It was also reported that agent offices in the state that sell auto and homeowners policies have ended the practice of selling insurance in person and through telephone agents.
However, the company said GEICO will still offer policies online, via a computer or mobile device. But buying policies directly through agents over the phone will not be possible.
The reasons for the closures in California are not clear at this time. It is unknown if more closures are possible in the United States.
DailyMail.com has reached out to the company for more information.
California customers hoping to walk into a GEICO office to sign up for a policy were out of luck this week, as several were turned away this week after 38 offices across the state closed
The California Department of Insurance is keeping a close eye on GEICO’s actions.
‘We’re checking to make sure consumers are protected,’ said California Deputy Insurance Commissioner Michael Soller to the Sacramento Bee.
A GEICO spokesperson would not comment to the Sacramento Bee about the new changes, but confirmed that the company was not leaving California.
“We continue to write policies in California, and we remain available through our direct channels to the more than 2.18 million California customers currently insured with us,” GEICO wrote in a statement on Monday.
Agent offices in California that sell auto and homeowner policies have ended the practice of selling insurance in person and through telephone agents
Several GEICO customers were shocked when they tried to meet with local agents at the GEICO office at 5211 Madison Avenue in Sacramento and were turned away. Instead, she was told to call an 800 number.
‘We are permanently closed and cannot write a new policy,’ an agent told a reporter on Thursday.
Local media reported that office doors were locked and signs were posted on the windows, saying it was temporarily closed.
An agent told the Sacramento Bee that the closure was permanent and due to corporate decisions by GEICO, not the local agency, which is independently owned.
According to the company’s website, GEICO hires local agents who must spend between $100,000 and $250,000 to open an office. The agents then make their money on commissions and can only sell GEICO products.
GEICO, headquartered in Chevy Chase, Maryland, is one of the largest auto insurance companies in the nation
Offices in Roseville, Fresno and Modesto were among properties that have recently closed.
The new GEICO changes mean their only options are online or on a mobile device, but not through a phone agent.
“The company’s actions will make it more difficult for consumers to purchase GEICO policies, especially those who are computer challenged or prefer to meet with an agent in person,” former California Insurance Commissioner Dave Jones told the Sacrament Bee.
GEICO is owned by Berkshire Hathaway, the company run by the famous investor Warren Buffett.
Geico shuts all 38 offices in California and lays off hundreds of people Source link Geico shuts all 38 offices in California and lays off hundreds of people