GEICO, the second-largest vehicle insurance underwriter in the US, has decided it will no longer cover Tesla Cybertrucks. The company is terminating current Cybertruck policies and says the truck “doesn’t meet our underwriting guidelines.”
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Robert Stevenson, a Tesla Cybertruck owner, recently revealed that GEICO is kicking out his Cybertruck from his multi-vehicle insurance policy.
In a post that was first shared on X and later reposted on Reddit, Robert writes, “@GEICO said they can no longer insure my Cybertruck.”
Robert added, “It makes no sense, as there are other, riskier cars out there. Let me know if you recommend any insurer for the truck. I have eight cars with an amazing record. I will be canceling my entire Geico policy!! Bye-bye!”
Below his post, the Cybertruck owner included the letter he received from GEICO informing him that his Cybertruck insurance policy was terminated.
Here is what the letter reads…
“2024TESLACYBERTRUCK
VIN: xxxxxxxxxxxxx
Policy Number: xxxxxxx
Dear xxxxx
We would like to thank you for choosing GEICO for your insurance needs. 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 have taken this action for the following reason(s): We are unable to insure your 2024 TESLA CYBERTRUCK xxxxxxx because this type of vehicle doesn't meet our underwriting guidelines.
Therefore, we must notify you as follows:
ALL COVERAGE ON THE 2024 TESLA CYBERTRUCK PROVIDED BY GEICO CASUALTY COMPANY, UNDER THE ABOVE POLICY NUMBER, WILL NON-RENEW AS OF 12:01 A.M. ON xx/xx/xx.
We are able to continue coverage on the remaining vehicle(s) on your policy.
Your updated policy documents will follow shortly. We regret that circumstances require this action and urge you to obtain other coverage on the 2024 TESLA CYBERTRUCK prior to xx,xx, 2024.”
If you have any questions, please do not hesitate to contact us at the number below.
Many factors are likely at play when an insurance company stops covering an individual or a vehicle.
You might think the insurance company has deemed the driver unsafe because he/she has been in a lot of accidents or for some other reason; however, in Anderson’s case, he says he has an amazing record.
More importantly, Anderson has eight vehicles. GEICO is only choosing to terminate the insurance coverage from Cybertruck and is actively pursuing renewal of his vehicle coverage for the rest.
This leaves no doubt that GEICO’s issue is directly related to the Tesla Cybertruck and not to Anderson or other factors.
So what’s going on here?
As we have reported numerous times over the past few months, one possible factor might be that the Cybertruck is one of the most problem-ridden vehicles currently out on the road.
It’s common to see Cybertrucks breaking down in the middle of the street or being bricked for no apparent reason.
We’ve reported three such issues just in the past week. In one, the Cybertruck owner says that he was locked out of his truck for three weeks, unable to open the door after it got bricked for the second time.
In another story, we covered a man who says he still loves his Cybertruck despite Tesla failing to fix the issue with his truck after eight separate service visits over five months.
We’ve also reported that Tesla service technicians are awaiting upper management to issue a Cybertruck recall and refresh to address the truck's numerous issues.
A few weeks ago, we also reported about a Cybertruck owner who was left stranded in the middle of the road by his Cybertruck on four different occasions.
Tesla gave this person a brand new Cybertruck; however, the second truck also got bricked. Finally, Elon Musk had to get involved personally, instructing Tesla engineers to drill open the bricked Cybertruck to access the inside.
Many of these Cybertruck failures might have been covered by Tesla’s own warranty program; however, the Cybertruck is also beset with other issues that could frustrate the insurance companies.
Cybertruck repair cost and time
The biggest of these issues is the cost and wait time to repair a Cybertruck following a minor accident. A few months back, a Cybertruck owner shared that it cost $13,404 to fix his truck after a minor fender bender.
Other reports also show that Cybertrucks cost more than $20,000 to fix following relatively minor accidents.
Cybertruck glass
If the above wasn’t enough, there is also the issue with the Cybertruck glass. As of writing, several Cybertruck owners have reported that their “transparent metal” glass has spontaneously shattered after being left in the sun for too long.
Other Tesla Cybertruck owners have also reported that their windshields shattered into pieces after being cleaned with a microfiber cloth or a light hit by a wedding ring.
Cybertruck & stainless steel
So far, we’ve discussed issues faced by Cybertruck owners; however, the Cybertruck, due to its construction material, could also pose a risk to other road users. In this case, we are singling out the Cybertruck’s 30X cold-rolled stainless steel exoskeleton.
Over the past few months, we’ve seen several accidents, including a Cybertruck and other vehicles on the road.
In those instances, the Cybertruck emerges barely scratched while the other vehicle is totaled. We’ve reports covering Cybertruck collisions, including a Cybertruck and a Ram pickup truck, a Cybertruck and a semi-truck, and a Cybertruck and a red sedan.
There are also several run-ins between Cybertrucks and deers on the highway. We’ve covered three so far.
In all these instances, the Cybertruck has caused severe damage to other road users. Given the likelihood of Cybertrucks causing undue harm during an accident, GEICO might have thought it didn’t need the liability associated with this vehicle.
Elon Musk vs. Warren Buffett
Finally, there is also the issue of Elon Musk's animosity with Warren Buffett. GEICO is owned by Berkshire Hathaway which is in turn run by Warren Buffett.
Over the years, the two had crossed paths, especially in the late 2010s when Buffet was trying to stop Tesla’s solar deployments in Nevada.
Overall, these are all speculation. However, one thing that’s not in doubt is that GEICO doesn’t want the insurance business from a Tesla Cybertruck. Currently, we do not have any conclusive reason for that.
However, do let us know if you have any ideas. Share your thoughts by clicking the red “Add new comment” button below. Also, visit our site, torquenews.com/Tesla, regularly for the latest updates.
Image: Screenshot from Techie Dani on X
For more information, check out: Several Former Tesla Cybertruck Owners Share The Staggering Amount of Money They Lost When Selling Their Trucks – “$30,000 Gone in 2 Months”
Tinsae Aregay has been following Tesla and the evolution of the EV space daily for several years. He covers everything about Tesla, from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.
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