GEICO to shut down local offices in California

Based on information obtained by Coverager, GEICO is shutting down all of its local agent offices in California.

In April, we reported that the insurer has paused phone sales in several states, limiting the option to quote or purchase policies to the internet, mobile app or local offices. California was one of those states and after this recent move, getting quotes and purchasing policies in the state can only be done online, with some exceptions.

GEICO has local offices across the country where 1099 contractors sell GEICO products and products from partner companies only. Start-up costs for a new GEICO agency range between $100,000 to $250,000, depending on the market, and GEICO owns the book of business. According to a source, the insurer sent out settlement offers based on seniority, but some of the offers owners are getting are not enough to cover breaking a lease.

According to its site, there were about 38 office locations in California.

We reached out to GEICO for a comment.