GEICO pauses phone sales in some states
GEICO has paused phone sales in several states, limiting the option to quote or purchase policies to the internet, mobile app or local offices.
In an email reviewed by Coverager, the following states have this new policy in place: AK, AR, CA, CT, DC, DE, GA, HI, KS, LA, MA, NJ, NM, NY, WI, WV.
We called GEICO’s sales department and after providing some information including age and a NY zip code, we were met with an automated message stating that an auto insurance quote can be obtained online or through the GEICO mobile app. This new policy has some exceptions and the main one is that military personnel can still get a quote over the phone.
According to the email sent out to GEICO employees, this change is a result of increases in vehicle repair costs, used car prices, and increased driving which leads to more accidents.
While the email did not explain how pausing phone sales will help combat the higher costs, it is believed among some GEICO employees that this move is designed to reduce the number of policies in these states where the company is experiencing higher losses. I, for one, find GEICO’s phone service to be faster and more convenient than its online experience.
We reached out to GEICO for a comment.