GEICO, the second-largest vehicle insurance provider in the United States, has announced that it will no longer offer insurance coverage for Tesla Cybertrucks, Torque News reports.
This decision involves the termination of current policies for these vehicles.
“[Cybertruck ]doesn’t meet our underwriting guidelines,” GEICO stated.
Robert Stevenson, a Cybertruck owner, recently shared his experience on social media, revealing that GEICO informed him that his vehicle would be removed from his multi-vehicle insurance policy. In a post initially shared on X and later on Reddit, he expressed his frustration.
“@GEICO said they can no longer insure my Cybertruck… It makes no sense, as there are other, riskier cars out there,” Stevenson said.
Stevenson mentioned his intention to cancel his entire GEICO policy, which covers eight vehicles, and in his post, he included a letter from GEICO outlining the termination of his Cybertruck insurance. The letter informed him that the coverage would not be renewed, effective from a specified date, and urged him to seek alternative insurance before that time.
While it is common for insurance companies to reevaluate policies based on various factors, it appears that GEICO’s decision is specifically related to the Cybertruck model, as it continues to cover the rest of Stevenson’s vehicles. This raises questions about the reasons behind the company’s decision, especially given that Stevenson has a strong driving record.
The Cybertruck has faced multiple reports of issues since its release, including problems with its functionality and repair costs. Owners have reported significant expenses for repairs, with some claims indicating costs exceeding $20,000 for minor accidents. Additionally, there have been complaints about the vehicle’s glass, which has been known to shatter under certain conditions.
The Cybertruck’s unique construction, featuring a 30X cold-rolled stainless steel exoskeleton, may also contribute to concerns from insurance providers regarding potential liability in accidents. Reports have emerged of Cybertrucks sustaining minimal damage while causing extensive harm to other vehicles involved in collisions.
Some speculate that the tensions between Tesla CEO Elon Musk and Berkshire Hathaway CEO Warren Buffett, GEICO’s parent company, could also influence the insurer’s decision. Historically, the two have had disagreements, particularly regarding Tesla’s solar initiatives.
