GEICO Cancels Insurance Coverage for Tesla Cybertrucks, Citing Underwriting Concerns
GEICO, a major U.S. auto insurance provider, is terminating coverage for Tesla Cybertrucks, stating the vehicle doesn’t meet its underwriting standards. This decision follows a review of existing policies and has left some Cybertruck owners scrambling for alternative insurance options.
Robert Stevenson, a Tesla Cybertruck owner, recently shared his experience on social media. His post, later reposted on Reddit, detailed that GEICO was removing his Cybertruck from his existing multi-vehicle policy. “@GEICO said they can no longer insure my Cybertruck,” Stevenson wrote. He questioned the decision, noting that he has a perfect driving record across eight vehicles and is now canceling his entire GEICO policy as a result. Attached to his post was the official notice from GEICO, which stated the vehicle’s non-renewal due to it not meeting underwriting guidelines.
The letter from GEICO reads, in part:
“After a careful review of your policy records, we have determined that we are unable to continue your insurance coverage for the 2024 TESLA CYBERTRUCK…We are unable to insure your 2024 TESLA CYBERTRUCK xxxxxxx because this type of vehicle doesn’t meet our underwriting guidelines.”
While insurance companies often consider a variety of factors when evaluating a policy, GEICO’s decision to terminate coverage specifically for the Cybertruck, while maintaining coverage for other vehicles on the same policy, suggests the issue is vehicle-specific.
As has been reported elsewhere, the Cybertruck has faced numerous issues since its release. These have included reports of breakdowns, software glitches, and significant repair costs. Reports indicate some owners have been locked out of their Cybertrucks due to software problems. Others have experienced multiple service visits without a resolution to persistent issues. Furthermore, the cost to repair a Cybertruck after even a minor accident can reportedly be substantial, with some repairs exceeding $20,000.
Another concern appears to be the Cybertruck’s glass, with reports of spontaneous shattering. The vehicle’s structural stainless steel exterior has also raised questions about the potential for causing more damage in collisions with other vehicles.
While there’s no definitive explanation, this could be a factor in GEICO’s decision. It is possible there is an unspoken economic factor, as GEICO is owned by Berkshire Hathaway, led by Warren Buffett, who has had a historic business rivalry with Elon Musk, the head of Tesla. However, the precise motivations behind the insurance company’s move remain under speculation.
