GEICO closes California insurance offices, lays off hundreds. State is ‘monitoring’

sacbee ^ | 08/01/22 | Randy Diamond

[hapnHal]

GEICO has closed all of its 38 California agent offices that sell auto and homeowners policies and other lines and has also ended the practice of selling insurance through telephone agents in the state.

Three offices in Sacramento, one in Roseville, three in Fresno and one in Modesto were among offices that have closed in the last few days. The closures are resulting in more than 35 layoffs in the Sacramento area and hundreds statewide.

The GEICO office in Roseville only opened in July 2021. GEICO put out a press release at the time saying it would meet the insurance needs of all Placer County residents.

:

[Adder]

So why?

[Won’t turn off ad blocker...]

[PeterPrinciple]

The agent, who opened the door for less than a minute, stated that the closure was permanent and due to corporate decisions by GEICO, not the local agency, which is independently owned. 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.

[PeterPrinciple]

GEICO is part of Berkshire Hathaway, the publicly traded company run by famed investor Warren Buffett.

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What does Warren know that we don’t?

[DannyTN]

Californians can still obtain GEICO policies in the state, but only through a computer or a mobile device, posing a challenge for those who are not technologically proficient. - Foxnews

[Fai Mao]

Well, unless another explanation is supplied, I am going with “Defunded the police and crime is up which makes the state unprofitable for the company.”

[dfwgator]

Californians can still obtain GEICO policies in the state, but only through a computer or a mobile device, posing a challenge for those who are not technologically proficient. - Foxnews

It's so easy even a caveman can do it.

[DannyTN]

LOL, perfect. Caveman was a Geico commercial wasn’t it?

[RightWingNut]

But can a California Democrat do it ??

[ncfool]

This is all because of California AB5 legislation.
This is all because of California AB5 legislation.
This is all because of California AB5 legislation.
This is all because of California AB5 legislation.

Geico does not want these independent contractor insurance agents classified as employees. Easier to leave the state of California.

[dfwgator]

Aye, there’s the rub.

[Dr. Sivana]

“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 an interview.

This article is silly. GEICO has ben phone/On-Line centric for as long as I have known of them. Throughout the country, the number of GEICO agencies relative to client base versus companies like State Farm or Farmers is miniscule.

The brick and mortar operations they have are a concession that they'd rather not have anywhere, and if having them in California means converting contractors to full-time employees, they are gone.

[ncfool]

Exactly AB5

[CaptainK]

First they came for the truckers and then the insurance agents.

Whose next?

[Ouderkirk]

Geico probably determined that P & C was a loser in California. Too many uninsured (read illegals).

[Jane Long]

Farmers?

(Real ones…not the insurance guys.)

[Robert DeLong]

Not a thing. He recognizes that Ca. (big cities) are sh!tholes, and a losing proposition, as I’m sure most of us know that to be the case also.

[ncfool]

Exactly

[Jane Long]

Hard to insure a third world country. That’s essentially what CA has allowed itself to become.

Heck, even its citizens are fleeing to Mexico City.

When that happens…you know it’s bad.

[lewislynn]

G--overnment
E--mployees
I--nsurance
CO--mpany