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Companies don't want to insure the Tesla Cybertruck - canceling policies or offering premiums higher than the cost of the car

Companies don't want to insure the Tesla Cybertruck - canceling policies or offering premiums higher than the cost of the car
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The second largest auto insurer in the U.S., GEICO, has declined to insure the Tesla Cybertruck due to it being… a Cybertruck. Other owners have reported similar rejections from this and other companies.

Recently, GEICO informed a client who has a multi-vehicle policy that it would not continue coverage for the Cybertruck, citing the electric pickup's failure to meet their criteria. Some owners have also reported denials, while others are concerned about this development.

For various safety-related reasons, Tesla has recalled the Cybertruck at least five times since its launch in 2023. Users have encountered issues like loose aluminum panels, gas pedals detaching, a finger-pinching tailgate, and even more amusing incidents. Insurers are certainly paying attention to these reports and the overall safety level of the vehicle, gradually beginning to refuse coverage for it. In a letter from GEICO to Cybertruck owner Robert Stevenson, the company states that his 2024 Cybertruck will lose insurance coverage:

“We cannot insure your 2024 Tesla Cybertruck because this type of vehicle does not meet our outlined requirements.”

Stevenson, who has a policy covering eight vehicles, responded that this doesn't make sense as there are other riskier cars. He asked for a recommendation for another insurance company, as he plans to cancel his GEICO policy for all his vehicles.

There are other instances where GEICO has denied coverage for the Cybertruck. A user from the cybertruckownersclub forum shared his experience. A few months after acquiring his pickup in New York, GEICO also canceled his policy. He was turned down by more than five insurance brokers and found himself unable to drive or sell the vehicle due to Tesla's resale policy.

Other Cybertruck owners have reported facing the same issue. Some have even canceled their Cybertruck orders as they cannot find insurance coverage. In some absurd cases, the quoted monthly insurance premium exceeds the cost of the pickup itself.

At this time, there is no guaranteed solution to this issue. Potential Cybertruck owners should keep this in mind before purchasing the vehicle.

Source: Notebookcheck

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