Geico, one of America’s largest auto insurers, appears to be no longer insuring the Tesla (Nasdaq: TSLA) Cybertruck, following initial reports of the company’s refusal to renew expiring policies on the vehicle earlier this year.
The latest incident involves Robert Stevenson, a Cybertruck owner who recently received a notice from Geico saying that his insurance coverage for the 2024 Tesla Cybertruck would be terminated due to the vehicle not meeting their “underwriting guidelines.”
Rumors first circulated that Geico had placed the Cybertruck on their “do not insure” list in June. At that time, some Reddit users reported being informed by Geico that the company would not offer renewal for their Cybertruck policies upon expiration.
The insurance giant’s reluctance to cover Cybertrucks seems to be growing more concrete. While some Cybertruck owners were initially offered coverage at significantly higher premiums — with reports of monthly increases of $200 or six-month terms costing $3,000 — Geico now appears to be moving towards outright refusal in some cases.
Several factors may be influencing Geico’s decision. The Cybertruck has faced numerous issues since its release, including frequent breakdowns, software glitches, and reports of spontaneously shattering glass. High repair costs, with minor accidents reportedly resulting in bills exceeding $13,000, coupled with long repair wait times, likely contribute to the insurer’s risk assessment.
The vehicle’s unique stainless steel construction has also raised concerns about its potential to cause severe damage to other vehicles in collisions, potentially increasing liability risks for insurers.
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