Tuesday 2 August 2022 03:39 PM Geico shuts all 38 offices in California and lays off hundreds of people trends now GEICO closes all 38 offices in California and ends sale of insurance over the phone, resulting in layoffs of hundreds of workers: State officials 'monitoring' situation to 'make sure customers are protected' GEICO is one of the largest insurance companies in the United States The company is reportedly closing all 38 of its California agent offices GEICO said the company will still be offering policies directly online GEICO has not released reasons why the offices are closed or if more are expected By Andrea Cavallier For Dailymail.Com Published: 15:30 BST, 2 August 2022 | Updated: 15:30 BST, 2 August 2022 Viewcomments GEICO, one of the largest insurance companies in the United States, has closed all 38 of its offices in California, resulting in hundreds of layoffs. California customers hoping to walk into a GEICO office to sign up for a policy are out of luck, the Sacramento Bee reported, as several were turned away this week. It was also reported that agent offices in the state that sell auto and homeowners policies have ended the practice of selling insurance in-person and through telephone agents. However, the company told the paper GEICO will still be offering policies online, through a computer or mobile device. But buying policies directly through agents by phone will not be possible. The reasons for the closures in California are unclear at this time. It is unknown if more closures across the United States are possible. DailyMail.com has reached out to the company for more information. California customers hoping to walk into a GEICO office to sign up for a policy were out of luck this week as several were turned away this week after 38 offices in the state closed The California Department of Insurance is keeping a close eye on GEICO's actions. 'We are monitoring to make sure consumers are protected,' California Deputy Insurance Commissioner Michael Soller told the Sacramento Bee. A GEICO spokesperson would not comment to the Sacramento Bee on the new changes but confirmed that 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,' GEICO wrote in a statement on Monday. Agent offices in California that sell auto and homeowners policies have ended the practice of selling insurance in-person and through telephone agents Several GEICO customers were startled when they attempted to meet with local agents at the GEICO office at 5211 Madison Avenue in Sacramento and were turned away. Instead, they were told to call a 800 number. 'We are permanently shut down and can't write new policies,' an agent told a reporter on Thursday. Local media reported that office doors were locked and signs were posted on the windows, saying it was temporarily closed. An agent told the Sacramento Bee that the closure was permanent and due to corporate decisions by GEICO, not the local agency, which is independently owned. According to the company's website, GEICO hires local agents who must spend between $100,000 and $250,000 to open an office. The agents then make their money on commissions and can only sell GEICO products. GEICO, which is headquartered in Chevy Chase, Maryland, is one of the largest auto insurance companies in the nation Offices in Roseville, Fresno and Modesto were among properties that have closed recently. The new GEICO changes mean their only options are online or on a mobile device, but not through a telephone agent. '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', former California Insurance Commissioner Dave Jones told the Sacrament Bee. GEICO is owned by Berkshire Hathaway, the company run by famed investor Warren Buffett. Read more: Share or comment on this article: All rights reserved for this news site (dailymail) and under his responsibility