GEICO Announces Massive Office Closures Resulting in Hundreds of Job Losses
GEICO has liquidated all 38 of its California agent locations and will no longer offer insurance through telephone insurance brokers in the state.
The closures have led to hundreds of layoffs in the Golden State. Agents who work in the auto and real estate industries have reportedly been hit the hardest.
Some GEICO customers were taken aback when they attempted to meet with local agents at the GEICO office at 5211 Madison Avenue in Sacramento but were turned away. They were instructed to instead call an 800 number.
As reported in The Sacramento Bee, the agent who briefly opened the door claimed that it was GEICO, not the local independently-owned insurance agency, that had decided to close the business.
GEICO has assured us that they will continue to provide policies online, through computers or mobile devices. “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,” GEICO stated on Monday.
“The company’s actions will make it harder for consumers to buy GEICO policies, particularly those who are computer challenged or prefer to meet an agent in person” said former California Insurance Commissioner Dave Jones.
In a statement, California Deputy Insurance Commissioner Michael Soller said, “We are monitoring to make sure consumers are protected.”
Offices in Roseville, Fresno, and Modesto are among those that have closed. The cause of the California closures are not yet known. It’s unclear if other closures around the country are likely.
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