GEICO Closes All of its 38 California Insurance Offices, Putting Hundreds of People Out of Work: Report

GEICO Closes All of its 38 California Insurance Offices, Putting Hundreds of People Out of Work: Report
By: RedState Posted On: August 02, 2022 View: 12

The Government Employees Insurance Company (GEICO), a private American auto insurance company, had reportedly shut down all its 38 insurance offices in California.

Customers can still get policies but have to use mobile or computer for products and services. Insurance in that state is now solely available online or through a mobile device, as the company has discontinued its use of telephone agents.

According to The Sacramento Bee, hundreds of GEICO employees across the state were laid off due to the closure of 38 offices.

An investigative reporter for TV stations in California went to the GEICO office and found a notice that read, “All GEICO offices in California are CLOSED for business.”

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FOX Business reported:

The precise reasons for the closures in California and massive layoffs remain unclear. FOX Business has reached out to the company for more information.

In a statement to the Sacramento Bee, a company spokesperson declined to elaborate on the changes, but clarified that GEICO was not leaving the Golden State.

“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 told the paper.

The California Department of Insurance, meanwhile, told FOX Business it is following the situation closely.

“We are monitoring to make sure consumers are protected,” CDI said in a statement.”California has a strong insurance market with more than 130 companies competing for consumers’ private passenger auto business and more than 70 companies writing homeowners insurance,” CDI said. “We encourage consumers to look at their options for coverage in California’s competitive marketplace.”

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