GEICO says, “Because of potential challenges with parts availability for repair shops, some Cybertyruck owners may have received notices stating that their insurance would not be renewed for this vehicle.” Read GEICO's full response below.
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Yesterday, we published an article showing that GEICO, the second-largest auto insurance company in the US, was canceling Tesla Cybertruck insurance policies.
In the article, we included a letter of termination one Cybertruck owner received from GEICO reading, “We are unable to insure your 2024 TESLA CYBERTRUCK because this type of vehicle doesn't meet our underwriting guidelines.”
Since then, multiple Tesla Cybertruck owners have shared similar stories.
In response to our article, which was posted on the Cybertruck Owners Club forum, another Cybertruck owner, 2blentendre, responded by writing, “Yes, it's true. I have been trying to get this across everyone's attention for months.”
Together with his post, 2blentendre included an X post he shared at the start of August. Here is what he wrote back then: “Hey Elon Musk, hit a snag with my Cybertruck—the 2nd delivered in New York City! Love the car. Just months after getting it, GEICO dropped my coverage, saying they won't insure Cybertrucks anymore. Struggling to find an insurer after 5+ brokers turned me down. Can't drive it and also can't sell it due to the 1-year restriction. Any advice on what I can do here?”
2blentendre finally added, “So far, I can verify that this has happened to 3 separate individuals in Kansas, NYC, NY State (Long Island). While there seem to be many more, these are the ones I can personally verify.”
Below, other Cybertruck owners pilled on, sharing that they have been refused insurance coverage for their trucks. So far, looking at various online forums and social media channels, I’ve seen more than ten Cybertruck owners who attest they have been denied insurance coverage for their Cybertruck.
Two important points to raise here: first, most of the Cybertruck owners who have seen their GEICO insurance terminated are multiple vehicle owners, including other Teslas, and only their Cybertrucks are being removed from their insurance policy. This rules out any personal reason.
The second thing to note is that although multiple individuals have confirmed that their Cybertruck policies have been terminated, there are also equally numerous Cybertruck owners who are still insured by GEICO and new Cybertruck owners who were able to get a quote from the insurance provider in the last two days even after this news broke.
At this point, naturally, you are probably wondering what’s going on. We were thinking the same and have put this exact question to GEICO and received an answer.
Here are the exact points we asked GEICO to clarify:
1. The specific reasons behind the non-renewal and denial of Tesla Cybertruck insurance policies for some owners while others are able to secure coverage.
2. Whether this is a temporary measure or a permanent decision by GEICO.
3. If there are any safety or regulatory concerns influencing this decision that Tesla Cybertruck owners should be aware of.
4. Any recommendations GEICO may have for current policyholders seeking alternative coverage.
The response we got, in a nutshell, is that GEICO has terminated some Cybertruck insurance policies due to either gross vehicle weight restrictions or “potential challenges with parts availability for repair shops.”
The first part doesn’t make much sense because GEICO knew the Cybertruck’s gross vehicle weight before offering individuals coverage. This leads us to lean on the second reason, which involves repair-related challenges.
Having said that, GEICO still maintains that the company hasn’t put out a blanket policy barring Cybertruck insurance coverage and says that Cybertruck insurance remains available nationwide.
In addition, GEICO has told us that they will be reaching out to Cybertruck owners whose insurance has been terminated.
In the spirit of transparency, below is the full response we received from GEICO…
“Tinsae:
Thanks for reaching out to GEICO.
GEICO has coverage available nationwide for the Tesla Cybertruck.
On-background:
GEICO has private passenger automobile (PPA) insurance available for the Tesla Cyberstruck. Customers can receive a quote directly on GEICO.com or by contacting our team directly via phone.
Because of its gross weight and potential challenges with parts availability for repair shops, some customers may have received notices stating that PPA insurance would not be renewed for this vehicle. However, policies for this vehicle have always been available through our commercial insurance division, and now remain available via PPA as well.
GEICO will be reaching out to any customers who may have received a nonrenewal notice.
Sincerely,
GEICO Corporate Communications”
In my reading, this letter seems like lawyer speaking for “We have terminated some Cybertruck policies due to repairability issues; however, we might be reinstating the policies going forward.”
Please let me know how you interpret GEICO’s response. Also, drop your questions below if you want us to get further clarification from the insurance provider. 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: Tesla Cybertruck delivery event
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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