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GEICO closes California insurance offices, lays off hundreds. State is 'monitoring' situation

Randy Diamond, The Sacramento Bee on

Published in Business News

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.

The California Department of Insurance is following GEICO’s actions, said California Deputy Insurance Commissioner Michael Soller.

“We are monitoring to make sure consumers are protected,” he said in a statement.

A GEICO spokesperson would not comment on the new changes but said the company was not leaving California.

 

“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.

The changes leave online options through a computer or a mobile device as the only way to obtain a GEICO policy in California

GEICO is one of the largest property and casualty insurers in California but Soller said consumers have options. He said more than 130 companies compete for private passenger auto business and more than 70 companies write homeowners insurance.

GEICO’s actions in California come as company commissioned Walk-In agents and phone sales remain open in other western states. GEICO is also advertising on its website for a new sales agent at an office in Naples, Florida.

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