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

Original Article

Posted By: NorthernDog, 8/1/2022 8:08:25 PM

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

Comments:

An unexpected layoff is not a fun way to start the month. GEICO customers in CA will have to use an App or website to handle their insurance needs.

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Reply 1 - Posted by: downnout 8/1/2022 8:11:45 PM (No. 1235006)
Has Newsome commented yet?
17 people like this.

Reply 2 - Posted by: VirtuDawg 8/1/2022 8:21:25 PM (No. 1235013)
More important than Gov Hairdoo, has the GECKO commented yet??!??
27 people like this.

Reply 3 - Posted by: chumley 8/1/2022 8:21:27 PM (No. 1235014)
Since they have not closed offices in any other state, safe bet something Kalifornia is doing drove them out. Kind of like they drove out so many others. Still plenty of illegal aliens and homeless bums though, so I guess the state is still happy.
40 people like this.

Reply 4 - Posted by: Rich323 8/1/2022 8:37:01 PM (No. 1235024)
According to multiple media sources and the Big Guy, we are NOT in a recession, so these layoffs are obviously due to climate change /s.
47 people like this.

Reply 5 - Posted by: earlybird 8/1/2022 8:43:06 PM (No. 1235029)
When I insured my car with GEICO in the 1980s, it had no agents. That was one of its selling points I liked it very much. I had only one dlaim for a very expensive windshield for my Toyota Celica Supra. They allowed me to get a windshield from Toyota rather than from a windshield dealer. Am with another company now, but many in the family have migrated to AAA.
14 people like this.

Reply 6 - Posted by: itsonlyme 8/1/2022 8:43:25 PM (No. 1235030)
The ILLEGALS have found a home, "Free Everything" They gravitate to the countless "Welcome Here "counties.
18 people like this.

Reply 7 - Posted by: ARob101 8/1/2022 8:46:59 PM (No. 1235032)
I want to know why so many offices were closed. Why? Is it something the state did or is the reason more internal.
27 people like this.

Reply 8 - Posted by: Safari Man 8/1/2022 8:47:33 PM (No. 1235034)
Its a sanctuary for uninsured motorists who come from a lawless culture of reckless driving. We don’t need no stinking insurance.
32 people like this.

Reply 9 - Posted by: Mizz Fixxit 8/1/2022 8:48:02 PM (No. 1235036)
Philanthropists George Soros and Warren Buffett always look out for the little guy. /sar
17 people like this.

Reply 10 - Posted by: Mizz Fixxit 8/1/2022 8:55:04 PM (No. 1235042)
On a serious note of speculation, I wonder if Geico was hit hard with homeowner policy claims, together with uninsured motorist and catalytic converter theft claims?
29 people like this.

Reply 11 - Posted by: usmc0302 8/1/2022 8:56:56 PM (No. 1235045)
Most likely due to unacceptable uninsured MVAs and maybe some needless gubermint mandated coverage. Too costly so they made a business decision to leave the state
20 people like this.

Reply 12 - Posted by: Dodge Boy 8/1/2022 9:21:21 PM (No. 1235062)
Ah, but no recession. Right, biden you cheater?
13 people like this.

Reply 13 - Posted by: wilemon 8/1/2022 9:32:31 PM (No. 1235068)
It is AB5...The new state law that says independent contractors are now employees and the employer is subject to a vast array of state labor laws and regulations.This will not be the last.
27 people like this.

Reply 14 - Posted by: anniebc 8/1/2022 9:34:15 PM (No. 1235069)
Geico used to be a favorite for military families. Until they were not. Thank you, USAA.
17 people like this.

Reply 15 - Posted by: jimincalif 8/1/2022 9:37:25 PM (No. 1235071)
since Geico hasn’t said they are no longer writing policies in CA, my guess is that Geico simply doesn’t want to be an employer in CA anymore. Stricter rules on exempt v non-exempt employees, mandatory OT pay after 8 hours in a day instead of 40 in a week, employment taxes, legislations, regulations, administrative agencies and court precedents that are blatantly anti-employer, higher wages due to the cost of living, and AB5, which might eventually be interpreted by a court to mess up the insurer-agent relationship, there are a lot of reasons not to be a CA employer. And with so much business now transacted online, how much business will they actually lose? As they used to say, Democrats love full employment, but hate employers. I’d argue this has changed, Democrats love people dependent on the state for their livelihoods, rather than those who work for a living. And they hate employers even more, except for big tech.
25 people like this.

Reply 16 - Posted by: msliberty1937 8/1/2022 10:08:07 PM (No. 1235080)
I've had Geico for as long as I can remember in multiple states and never had a problem. I'm in Cali for last 8 years and my premium has gone down during that time. Would hate to have to find another carrier. Any advice?
5 people like this.

Reply 17 - Posted by: Safari Man 8/1/2022 10:19:46 PM (No. 1235082)
AIG pulled out of CA in January. I guess CA is headed for nothing but government own insurance. Socialist utopia.
9 people like this.

Reply 18 - Posted by: FL_Absentee_Voter 8/1/2022 10:28:08 PM (No. 1235090)
The San Diego facility in Poway closed several years ago. Huge buildings of nothing but cube farms. Lots of jobs, now gone.
9 people like this.

Reply 19 - Posted by: earlybird 8/1/2022 10:41:56 PM (No. 1235100)
Curb the enthusiasm. GEICO not leaving California. Just closing some offices. In the past. they had worked out of just a few regional offices and had the very best telephone service. No dummies… The local agents and offices must not have worked out. They add an extra layer of costs that the company didn’t have with the regional offices and service may have suffered.
8 people like this.

Reply 20 - Posted by: earlybird 8/1/2022 10:51:51 PM (No. 1235104)
The article is pretty clear on many of the issues raised on the thread. which tells us not many read it. They used these independent agents to prospect for new business. They talk of people wanting to meet their agent. My DH used to know the agent with his company. He is long gone and I would rather have my hair pulled out that talk with an insurance agent. GEICO was for government employees and the military, it was reasonably priced (when no agents/offices) and offered great, professional service via phone from its regional ofices. My idea of perfect.
8 people like this.

Reply 21 - Posted by: Mauigirl 8/1/2022 11:33:00 PM (No. 1235115)
Thanks #19-20. Occasionally it helps to read the damn article. Frequently not done around here.
7 people like this.

Reply 22 - Posted by: Mizz Fixxit 8/2/2022 3:04:20 AM (No. 1235177)
FTA: It’s unclear if GEICO is losing money in California and the moves are part of a strategy to reduce business. Warren Buffett is in business to make money. Thus, it is fair conjecture that Buffett closed offices that agents paid a total of approximately $6.65 million for to cut his losses. Just sayin’.
2 people like this.

Reply 23 - Posted by: judy 8/2/2022 5:49:54 AM (No. 1235229)
They were probably paying out more $$$ in damages than they were taking in???
2 people like this.

Reply 24 - Posted by: Terry Saulsbury 8/2/2022 6:29:14 AM (No. 1235235)
Merely ask yourself what G - E - I - C - O stands for and there should be no misunderstanding as to why they are closing field offices.
2 people like this.

Reply 25 - Posted by: Roscoelewis 8/2/2022 7:13:40 AM (No. 1235266)
...wonder if the lizard will be moving to Texas, now
2 people like this.

Reply 26 - Posted by: Muguy 8/2/2022 7:21:25 AM (No. 1235272)
I guess Flo and "Progressive" will take up the slack. They are well known libs-- it should be a good fit.
2 people like this.

Reply 27 - Posted by: F15 Gork 8/2/2022 7:42:40 AM (No. 1235297)
Perhaps people just can’t afford insurance anymore?
2 people like this.

Reply 28 - Posted by: stablemoney 8/2/2022 8:35:27 AM (No. 1235370)
Geico is abandoning the high costs of California, and moving to selling in the state online, and remotely. A lot of people and corporations have left the state. The snoots in Sacramento don't see the rungs falling beneath their feet.
2 people like this.

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