According to the Q2 2022 LIST Report on U.S. Auto Insurance from J.D. Power and TransUnion, while rival Progressive has historically trailed GEICO in quote volume, they surpassed them in May and June as GEICO's quote numbers fell. (Credit: Jonathan Weiss/Shutterstock.com)
All 38 California GEICO offices have been shuttered and phone sales in the state have halted. According to a statement provided to the Sacramento Bee, hundreds of employees have been laid off as a result. However, the statement also offered assurances the insurance company will continue to write policies and service current customers in the state through direct channels.
This comes after GEICO made the decision in April 2022, to suspend quoting in their call centers across several states — including California — and the effect of this decision is evident in the company's quote data from the second quarter of the year.
According to the Q2 2022 LIST Report on U.S. Auto Insurance from J.D. Power and TransUnion, while rival Progressive has historically trailed GEICO in quote volume, they surpassed them in May and June as GEICO's quote numbers fell. The report shows GEICO began 2022 with a 20.3% quote rate in January, but wrapped up June at 18%.
In July 2022, U.S. News & World Report chose GEICO as one of their top three "Best Car Insurance Companies of 2022," and reported the carrier had the second-lowest rates compared to other companies in their study, with an average auto premium of $1,148.
Though no data is currently available as to how GEICO was performing financially in California, this change comes as auto repair and replacement costs soar, forcing many insurers to raise premiums and cut costs to remain profitable.
Brittney Meredith-Miller
Brittney Meredith-Miller is senior editor of PropertyCasualty360.com. She can be reached at [email protected].