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GEICO is Terminating Insurance Coverage of Tesla Cybertrucks, Says “This Type of Vehicle Doesn't Meet Our Underwriting Guidelines”
Torque News ^ | 10-06/2024 | Author: Tinsae Aregay

Posted on 10/06/2024 8:53:32 PM PDT by Responsibility2nd

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.

(Excerpt) Read more at torquenews.com ...


TOPICS: Business/Economy; Travel; Weird Stuff
KEYWORDS: cybertruck; ev; firetraps; geico; insurance; tesla
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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.

1 posted on 10/06/2024 8:53:32 PM PDT by Responsibility2nd
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To: Responsibility2nd

GEICO is a crappy business.

They are not an honorable or trustworthy business.


2 posted on 10/06/2024 8:56:45 PM PDT by Red6
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To: Responsibility2nd

AI tells me...

“Insurance rates for the Cybertruck typically fall between $150 to $300 per month, though some drivers report higher or lower rates.”

I think insurance companies ought to add an extra zero to those monthly rates. $2,000 to $3,000 per month policies are more in line. Besides’ Cybertruck owners are rich and mega stupid. They can afford it.


3 posted on 10/06/2024 8:58:15 PM PDT by Responsibility2nd (Leaving Abortion up to the States is like Leaving Slavery up to the States.)
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To: Responsibility2nd

I would cease coverage just on the fugly factor.


4 posted on 10/06/2024 9:00:46 PM PDT by Labyrinthos
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To: Responsibility2nd

Try imagining an electric truck carrying a maximum load drawing maximal voltage from the lithium batteries in a rainstorm.


5 posted on 10/06/2024 9:02:43 PM PDT by allendale
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To: Responsibility2nd

Resident EV Shill: “Is it really Tesla’s fault that their owners are unable to handle the new technology. After all, it’s called a Cybertruck, so they had been warned.”


6 posted on 10/06/2024 9:03:51 PM PDT by BobL
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To: Responsibility2nd

More like GEICO doesn’t trust the decision-making of Cybertruck owners.


7 posted on 10/06/2024 9:04:00 PM PDT by T.B. Yoits
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To: T.B. Yoits

“More like GEICO doesn’t trust the decision-making of Cybertruck owners.”

Or they don’t like Musk’s politics and want to sabotage Tesla.


8 posted on 10/06/2024 9:09:01 PM PDT by willk (Local news media. Just as big an enemy to this country as national media)
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To: Responsibility2nd

well, if you so much as scratch the battery, the vehicle is totaled.

I wouldn’t insure it either.


9 posted on 10/06/2024 9:14:10 PM PDT by Safrguns
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To: Responsibility2nd

Is that the insurance company that had a squawking goose as a mascot then switched to a Caveman? I was so glad when that goose performed his Swan Song and flew away That voice!


10 posted on 10/06/2024 9:16:17 PM PDT by lee martell
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To: Responsibility2nd

It’s pretty simple, the things are too expensive to fix due to the cost of repairing even small damage to the body. This isn’t just the Tesla CyberTruck, there are other vehicles that insurers take a pass on due to the cost to repair. They are also very careful nowadays due to the big hits they have taken because inflation and supply chain issues in the past have so dramatically increased the cost to repair vehicles, they took some pretty big losses because they were not charging adequate rates for the increased exposure to physical damage claims.

There is a solution and that will be Tesla offering its own insurance. Something that makes a lot of sense because on all Tesla vehicles Tesla is collecting data on drivers that no other insurer can touch from a risk/underwriting standpoint.

Musk thought about this long ago:

https://www.tesla.com/insurance

It’s available in about 12 states. Since auto insurance is regulated state by state it will take Tesla awhile to get their program approved in most of the states. I was involved in starting one of the first “insurance by the mile” companies years ago and it mainly did not succeed because the insurance industry is very powerful, and the legacy companies don’t like to compete with anything they cannot control. On the other side of the coin state insurance regulators are somewhat slow to bless new innovation because they are wary of things that don’t work like the way things always have worked. For example, one really sensible way to provide automobile insurance would be by selling it “at the pump”. You buy gas, you get “X” amount of insurance. The legacy companies don’t like that.

I’m somewhat of an expert in this area and invented underwriting algorithms that have been around for decades.

The big crisis in the personal line’s insurance business is homeowners insurance. It’s going through the roof everywhere and these recent catastrophes are going to make that worse. The same inflationary pressures impacting the cost of home repairs have already put a lot of pressure on home insurers and these new major losses are going to be painful. Especially for properties on the coast.

As far as FEMA and the issues with there being no money for all the states impacted by recent storms the so-called “flood insurance” the federal government provides goes broke every few years and Congress has to fund it over and over with borrowed money.


11 posted on 10/06/2024 9:19:12 PM PDT by isthisnickcool (1218 - NEVER FORGET!)
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To: Responsibility2nd
mega stupid

Stole my thunder. Nailed it.

12 posted on 10/06/2024 9:33:13 PM PDT by logi_cal869 (-cynicus the "concern troll" a/o 10/03/2018 /!i!! &@$%&*(@ -)
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To: Red6

... and in totally unrelated news, Elon Musk started an auto insurance company and doubled his wealth.


13 posted on 10/06/2024 9:56:53 PM PDT by The Duke (Not without incident.)
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To: Responsibility2nd

This made me snicker.
I despise the green mafia and the artificial enthusiasm for EV’s at the expense of ICE.
The 8% jump in my electric bill to pay for other peoples “EV Infrastructure” does not help.


14 posted on 10/06/2024 10:01:01 PM PDT by Ex gun maker. (Free thinking is now a radical concept, I will not be assimilated by PC or EV groupthink!)
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To: willk
"Or they don’t like Musk’s politics and want to sabotage Tesla."

Likely. Geico is a left leaning company.

15 posted on 10/06/2024 10:22:17 PM PDT by Right Brother
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To: lee martell

AFLAC with the white duck


16 posted on 10/06/2024 10:30:48 PM PDT by gbs
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To: gbs

Oh. That’s right!


17 posted on 10/06/2024 10:32:32 PM PDT by lee martell
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To: willk

“Or they don’t like Musk’s politics…”

Ding Ding Ding! We have a winner!


18 posted on 10/07/2024 12:10:13 AM PDT by Dogbert41 (“Blessed are the peacemakers, for they will be called children of God” -Matthew 5:9)
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To: Responsibility2nd

To be honest, I think this will be a trend toward electric vehicles in general (if the Feds stop arm-twisting towards electric). The reality is they have a much higher propensity to get totaled in relatively minor accidents, because of how easy it is to damage the very expensive batteries.


19 posted on 10/07/2024 4:12:21 AM PDT by XEHRpa
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To: Responsibility2nd
In those instances, the Cybertruck emerges barely scratched while the other vehicle is totaled.

I didn’t know that. That’s a positive in my book. That’s how trucks used to be made. Does anybody still make a gas truck like that? EV trucks have no range when hauling a load.

20 posted on 10/07/2024 4:18:57 AM PDT by Tell It Right (1 Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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