GEICO is Dropping Cybertrucks from insurance plans

Question

I believe that this is happening because it is almost impossible to calculate what an insurance rate would need to calculate on a car this different without preexisting data. For one off cars, this is not a problem because there are so few, but with the Cybertruck which tesla has the capacity to produce upwards of 200,000 vehicles yearly, it has the possibility of screwing up the formula that GEICO has come up with to flourish as a company since 1936.

Answer 1

https://www.barrons.com/articles/tesla-cybertruck-insurance-0115a30e

"Geico has private passenger automobile (PPA) insurance available for the Tesla Cybertruck"

From the moment I read the article you listed, I knew it was questionable. It contained a lot of personal perspective or opinion and contained little fact. Considering their article was created solely on the fact that one customer was told they could not insure a Cyber-truck because it was a Cyber-truck it doesn't have a strong case going for it. When looking into the other article it stated that many have had an issue with insuring their vehicles but that they were trying to solve the issue and that their was an insurance package that would for sure insure their Cyber-trucks. 

Answer 2

"In an email to The Verge, Geico pushed back. “Geico has coverage available nationwide for the Tesla Cybertruck,” Geico spokesperson Ross Feinstein said."

https://www.theverge.com/2024/10/7/24264330/geico-insurance-coverage-cybertruck-cancelled-dropped-policy

According to this article from The Verge website, it seems as though they have communicated to a representative at Geico and denied the claim they aren't providing coverage to Cybertruck owners. While the email wasn't published alongside this article, it seems that other digital sources have come to the same conclusion.

Also discussed in both articles is the fact that policies are dependent on a number of factors that vary from costumer to costumer. When reading the Torque News article it seems as though the author takes the word of the person who posted on X when he says he has a perfect record.

Answer 3

The website, Torque News, has a history of opiniated articles that have little credibility. This news was also denied by a Geico representative on The Verge. https://www.theverge.com/2024/10/7/24264330/geico-insurance-coverage-cybertruck-cancelled-dropped-policy

This article has misleading evidence as the author takes the reddit user's word to be true.

Answer 4

Since the Tesla is entirely electric, which means it may be hacked at any time and randomly stop working, I think Geico decided to cut ways with the company because of the liability it poses for a number of issues, including safety. Geico claims in the report that the Tesla Cyber-truck's coverage was cancelled because "this type of vehicle doesn't meet our underwriting guidelines. ."The quotation implies that the speaker does not necessarily believe that the risks associated with this vehicle are acceptable for their business and that the expenses and repairs can be afforded. Also, Geico doesn't agree with the model of Cyber-trucks. Cyber-trucks also have been highly associated with claims, and their decision to move in this direction indulges in their ideas and how they feel about how the risk of Cyber-trucks is much greater than the benefits. https://www.torquenews.com/11826/geico-terminating-insurance-coverage-tesla-cybertrucks-says-type-vehicle-doesnt-meet-our