Geico (NYSE: BRK.B), one of the largest insurance providers in the United States, may have placed the Tesla (Nasdaq: TSLA) Cybertruck on their “do not insure” list.
According to a Reddit user who was in the process of ordering a Cybertruck, Geico informed them that the company would not offer renewal for the vehicle when their current 6-month policy expires. If true, Cybertruck now joins the ranks of other high-end vehicles, such as special edition Lamborghinis and Bugattis, which Geico has deemed too risky to insure.
Other users meanwhile are indicating that while Geico agreed to insure their Cybertruck, they did so at significant premiums. One user suggested the premium increased by $200 per month upon renewal, while another user saw Geico quote $3,000 for a six month insurance term on the vehicle. It was not clear for what states these quotes were provided.
Related: Tesla Announces New Low-Priced Model To Distract From 55% Profit Drop, Cybertruck Recall
In a related discussion on the Cybertruck subreddit in January when the first units were delivered, users shared their experiences with insurance costs for the vehicle, with some reporting monthly premiums ranging from $200 to $400, while others were quoted as high as $1,000 per month.
These figures are significantly higher than the average insurance costs for most vehicles, which typically fall below $200 per month.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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