Geico says the cancelled coverage has to do with the fact no one yet knows how much it’ll cost to repair a smashed one
- Several Tesla Cybertruck owners in the U.S. have had their insurance policies cancelled on their trucks
- We spoke with Geico, and were told the cancelled coverage has to do with repair costs
- Nobody yet knows exactly how much they are to fix, and so they don’t know how much to charge
So, we at Driving.ca called Geico’s service department line in the U.S. and spoke with a service representative who identified himself as Casey C. (We identified ourselves as media, and when he asked if we were looking to buy a policy, we told him we were not.) He said the issue with the Cybertruck is tied in to repair costs — specifically, the fact that the company doesn’t yet have enough data on it, and how “we haven’t figured out how to rate the vehicle,” he said.
Casey told us the issue is “how much they cost to repair after an accident, and we don’t have enough information on what to charge for the vehicle.” Basically, insurance companies figure out what it’ll cost to repair damage following a crash, and that’s part of how they determine what your policy will cost — and that’s the part Geico hasn’t yet determined. He told us to “check in again in about three months, or six months, and we may be able to cover the vehicle at that time.”
The letter Stevenson posted online didn’t explain this, just that the Cybertruck didn’t meet the guidelines. In his post, he said that he owns eight cars, and Geico’s letter said that “we are able to continue coverage on the remaining vehicle(s) on your policy,” but that the Cybertruck’s policy “will non-renew” on a date that Stevenson didn’t reveal. The company added that, “We regret that circumstances require this action and urge you to obtain other coverage” on the truck.
Stevenson didn’t mention how long the Cybertruck had been insured by Geico up to that point, or why Geico initially supplied him with a policy, but subsequently refused to renew it.
Stevenson apparently isn’t the only one who’s now finding issues with his insurance. In a forum for Cybertruck owners, some have complained of having their policies dropped after being covered for a few months; or being unable to find an insurer willing to cover it; or with coverage at rates of US$1,300 per month.
So far, various outlets are speculating that insurance is a problem generally because many Cybertrucks have issues with breaking down, or have a glitch that locks out their drivers, or that they pose a risk to other drivers. One out-there idea suggests Elon Musk doesn’t get along with Warren Buffet, whose Berkshire Hathaway investment company owns Geico.
The risk to other road users, while apparently not tied into the Geico policy, is an issue in some overseas jurisdictions. The Cybertruck isn’t sold in the U.K. because its pedestrian-unfriendly front end doesn’t meet safety regulations, which require vehicle fronts to protect pedestrians with crumple zones and not have sharp or protruding edges. The truck’s weight of 3,104 kg (6,843 lbs) would likely take it above a regular driver’s licence, too, requiring the equivalent of a commercial driver’s licence. (And on top of that, the Cybertruck’s fast-charging port design, dubbed the North American Charging Standard or NACS, isn’t used in the U.K.)
So far, we haven’t heard of any insurance issues in Canada, but if you are considering a Cybertruck, we’d suggest finding out if you’re going to have any problems with insuring it before you make your down payment.
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