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Do Insurance Companies Cover Tesla Cybertrucks? Here’s the Deal

Here’s Why Tesla Cybertrucks Are a Headache for Insurance Companies


Tesla’s Cybertruck has seen its fair share of news coverage recently— and not for the best reasons. Safety recalls have plagued the smart truck, according to Reuters, and owners have complained about the stainless steel body rusting. Now, Cybertruck owners are claiming major insurance companies won’t cover their vehicles.

In an Oct. 5 X post (via Reddit), an apparent Cybertruck owner with the display name Robert Stevenson claimed GEICO emailed him informing him his insurance coverage had been terminated. “@GEICO said they can no longer insure my Cybertruck,” the user wrote. “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!”

The screenshotted letter stated, “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.” (It should be noted that the authenticity of the email itself has not been confirmed.)

Is It True Insurance Companies Won’t Cover Tesla Cybertrucks?

As rumors that Cybertruck owners are struggling to insure their vehicles grow (particularly on the anti-Cybertruck subreddit CyberStuck), major insurance companies are now speaking out to clarify things: they do, in fact, insure Tesla Cybertrucks. Turns out, securing coverage hinges on far more than just what vehicle an individual drives.

In an email statement to The Verge, Geico spokesperson Ross Feinstein said, “Geico has coverage available nationwide for the Tesla Cybertruck.” In June, State Farm’s spokesman Roszell Gadson clarified to The Verge that they, too, cover Cybetrucks, explaining, “It is important to remember that every customer’s situation is unique and the type of vehicle a person owns is only one factor in determining eligibility for coverage.”

The Verge reports that GEICO offers private passenger automobile (PPA) insurance to most Cybertruck owners, though some customers have been switched to commercial insurance due to factors like the truck’s gross weight and potential complications with obtaining parts for repairs.

So, Why Was My Cybertruck Denied Insurance Coverage?

Insurance companies consider a wide range of factors when determining whether or not they’ll insure an individual’s vehicle, from the driver’s age and location to their driving history and insurance score. Any of these factors could have led to someone being denied insurance coverage.

However, one factor that may impact Cybertruck drivers in particular is the value of their vehicles. For example, some insurance companies won’t cover a vehicle valued over $100,000 (roughly the cost of the Cybertruck’s cheapest model).

In response to the controversy, Threads user KCharlesRoss wrote, “Many insurers do not insure high dollar specialty vehicles. My Geico policy even says it will not cover a vehicle worth more than $100k as a non-owned or temporary substitute vehicle.” $100,000 is roughly the cost of the Cybertruck’s base model.”

So, no, insurance companies are not denying coverage to Cybertrucks specifically because they’re Cybertrucks. Still, Cybertruck owners may have trouble insuring their vehicles for other reasons.

Sources

  • Reuters.com: “Tesla recalls over 27,000 Cybertrucks in fifth callback this year” (2024)
  • TheVerge.com: “Geico insists it ‘has coverage’ for the Cybertruck after owners complain of dropped policies” (2024)





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