Published 05/02/2022 Last Updated 05/02/2022
According to an article released by Coverager.com on April 21, 2022, GEICO has appeared to stop selling their auto insurance policies over the phone in the states of AK, AR, CA, CT, DC, DE, GA, HI, KS, LA, MA, NJ, NM, NY, WI, WV. (You can read the full article here)
Speculation over why GEICO has stopped their phone sales, which is the majority of their incoming business, is up for debate. According to Coverager.com, an insider email sent to company employees cited "increases in vehicle repair costs, used car prices, and increased driving which leads to more accidents".
Our independent take on this: the loss ratio (Premium in vs. premium paid in claims) is likely upside down. The future and impact of this is still unknown, as GEICO is one of the largest automobile insurers in the nation by market share.
While that's not exactly an answer customers want to hear, it is good news for consumers to know that independent agent models are thriving right now.
"Now is the time to contact a local independent and review and move your coverages",
says Zachary Tavolaro, General Manager of Jordan First Insurance based out of Jordan, New York (Syracuse) "the good thing about our model, is that we won't just shut the door on you."
To get a quote on your insurance with an independent agent, tap or click the request button below. Our team of dedicated insurance professionals will have a one-on-one consult with you at no cost to review your options.
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About the Author
My name is Taylor Haines, and I am the CEO & Principal of Encompass Agency, Inc. (Buffalo) and Jordan First Insurance (Jordan, NY). I grew up in rural Skaneateles, NY and have over a decade of experience in the insurance industry after my first job in 2012 at GEICO as a direct writer. I am passionate about insurance and its relationship to law, and frequently research the latest industry trends regarding the legal implications of insurance. I earned a Bachelor from the University at Buffalo in History and hold a Master of Science from Buffalo State College in Human Resources.