GEICO, the second-largest auto insurance company in the United States, says Tesla Cybertrucks don't meet their underwriting guidelines.
Robert Stevenson, a Tesla Cybertruck owner, revealed via social media that GEICO had removed his truck from his multi-vehicle insurance policy. “@GEICO said they can no longer insure my Cybertruck,” Stevenson posted on X, adding, “I have eight cars with an amazing record. I will be canceling my entire GEICO policy!! Bye-bye!”
Stevenson also shared a letter from GEICO explaining that coverage for his 2024 Tesla Cybertruck would not be renewed. The letter stated, “We are unable to insure your 2024 TESLA CYBERTRUCK because this type of vehicle doesn't meet our underwriting guidelines.”
Though GEICO did not provide further specifics, several factors could be influencing the company's decision. Tesla's Cybertruck has garnered attention for various issues, including reports of mechanical failures and exorbitant repair costs. For instance, some owners have reported being locked out of their trucks or experiencing breakdowns that led to multiple service visits.
Additionally, repair costs for the Cybertruck can be steep. One owner reported spending over $13,000 to fix a minor fender bender, while others have seen repair bills exceed $20,000 for minor accidents.
The Cybertruck’s unique construction, featuring a 30X cold-rolled stainless steel exoskeleton, is also raising concerns.
There is also speculation that Elon Musk’s long-standing animosity with Warren Buffett – who runs Berkshire Hathaway, the owner of GEICO – may have played a role. However, the exact reason for GEICO's decision remains unclear.
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