One of the biggest car insurers in the United States, GEICO, has decided to stop providing coverage for Tesla’s Cybertruck insurance. Now everyone is surprised, including current Cybertruck owners, who are being told to find alternative coverage. The reason for this decision? GEICO says the Tesla Cybertruck doesn’t meet its underwriting guidelines.
Recently, Tesla Cybertruck owner Robert Stevenson went on social media to share that GEICO stopped covering his truck. Stevenson has several vehicles insured and a great driving record, yet he received a letter from the company saying that his Cybertruck no longer meets their guidelines. Other vehicles he owns are covered.
Apparently Geico car insurance in no longer insuring Cybertrucks because this type of vehicle doesn’t meet our underwriting guidelines
byu/godzilla19821982 inCyberStuck
Cybertruck’s challenges may be the root cause
But the bigger question is why, of all the cars out there, did GEICO decide to drop this one? There aren’t many details to GEICO’s decision other than a Cybertruck with just about every issue it might have. One is that Cybertruck owners have commonly complained about their vehicle’s reliability. The Cybertruck has been known to break down unexpectedly and wait long for the repair. In several cases, owners have told us of trucks stalling or requiring elaborate service visits that didn’t resolve the issue.
However, eyebrows have also been raised over the costs of repair. The reports that follow indicate even minimal accidents may run up tens of thousands of dollars in bills. Cybertruck’s unique feature: The stainless steel body of the Cybertruck has been expensive to fix, and the difficulty extends to an already scarce part of the situation. This might make it difficult for insurance companies to justify, for example, still covering the vehicle.
More than just wear and tear
Cybertruck tech has some repair issues, raising concerns regarding how it plays nice with other vehicles on the road. Unfortunately, cyber trucks have seen a lot of accidents, with the truck sustaining only minor damage while other vehicles have been blown away. Its passengers could be protected by the strong, stainless steel exoskeleton of the Cybertruck, but other vehicles might be crushed by it. Some have wondered if the truck’s design might present potential dangers with several incidents, including collisions with deer and other vehicles. GEICO took these risks into account when it decided to yank its coverage.
Some Cybertruck owners have a problem with the glass. Despite Tesla’s bold claims about the truck’s “transparent metal” glass, reports have surfaced of it shattering unexpectedly, either from sunlight or after light impacts. That just adds more uncertainty to a vehicle that’s already a problem waiting to happen.
Robert Stevenson, a Cybertruck owner, will now seek new insurance. GEICO dropped Stevenson for insurance, and it pissed him off. He plans to switch insurers. But GEICO isn’t changing course with the Cybertruck — it will still insure other cars. As more is known about Cybertruck, we may see other insurers similarly follow GEICO’s lead. We aren’t sure why this move was made, but Tesla Cybertruck owners will now have to find another insurance option.
Featured image credit: Maxim/Unsplash
