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Geico terminating insurance coverage of Tesla Cybertrucks

91 pointsby MilnerRoute8 months ago

11 comments

taylodl8 months ago
Many insurers have also dropped specific models of Kia and Hyundai because of their lack of effective anti-theft technology. I say that only to point out that an insurer no longer covering a specific model isn&#x27;t unprecedented.<p>The repair costs of the Cybertruck are astronomical and Geico must feel that for the business model to make sense the premiums would also be astronomical, so much so that they opted to get out of the market altogether. It&#x27;d be interesting to know whether they&#x27;re just dropping Full Coverage or dropping All coverage - I&#x27;d still think they&#x27;d sell you insurance to protect you should you cause damages, which is the minimum insurance required in most (all?) states.
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Schnitz8 months ago
I’m surprised that the article doesn’t mention the complete lack of pedestrian safety, which is so bad the truck can’t be sold in Europe. Geico might not want to pay those claims of sharp steel edges ripping into people.
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eqvinox8 months ago
A car that can&#x27;t be registered in Europe because it doesn&#x27;t meet safety standards has problems getting insurance where it can be registered... that&#x27;s not particularly surprising?<p>I guess it would&#x27;ve been &quot;nice&quot; if they just increased the rates to cover the higher risk, but it looks like at some point they decided it&#x27;s not worth bothering. It&#x27;s a free market, they&#x27;re free to not offer service...
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andsoitis8 months ago
Geico also doesn’t insure certain models of McLarens, Lamborghinis, Jaguars, Bugattis. A quick search reveals there have also been certain Kia and Huyandai models that they don’t insure.
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sircastor8 months ago
I think we&#x27;ve started to enter a weird space. For a number of &quot;necessary&quot; things in life (in the US), one needs to purchase insurance - in some cases its required by law, or an unavoidable policy of obtaining a loan. Cars and houses.<p>But insurers have started just refusing to insure some cars, or homes in some locations (and we&#x27;re not just talking about building in a flood plane). We&#x27;re going to have piles of cars and homes that no one can use because the risk profile is too high for insurers.
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linotype8 months ago
&gt; “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!”<p>Eight cars. Eight. Our planet (for humans anyway) is truly screwed.
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widdakay8 months ago
Can someone find more about why GEICO did this? It makes no sense. Furthermore, they could just increase rates if they found accidents too common.<p>Also, there are much less safe cars out there for pedestrians such as the Hummer EV (complete behemoth) or Rivian (weighs more than CT and has significantly higher frontal profile which is shown to be the largest contributor to pedestrian safety above basically anything else). If it&#x27;s about breakdowns, that money comes from Tesla&#x27;s wallet so would make no sense. Even so, I see Cybertrucks driving daily and haven&#x27;t seen a broken down one yet.
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LatteLazy8 months ago
Is their any evidence of this applying to anyone other than this specific example?<p>I ask as I cannot find any. And the email quoted is quite specific (&quot;reviewing YOUR record&quot; and &quot;YOUR policy is being cancelled&quot;).<p>Being on a multi-car policy complicates the logic here. As does the specific location (California has laws limiting insurance rate increases that lead to exactly this).<p>But it&#x27;s entirely that this is an isolated change with nothing to do with the overall vehicle.<p>The fact he has 8 other cars makes me suspect he hit some limit they had not previously enforced...
MilnerRoute8 months ago
A recent filing &quot;revealed that Tesla has now built and sold 27,185 Foundation-Series Cybertrucks for customers.&quot;<p><a href="https:&#x2F;&#x2F;www.notateslaapp.com&#x2F;news&#x2F;2296&#x2F;nhtsa-reveals-tesla-cybertruck-sales-number-in-ota-recall-filing" rel="nofollow">https:&#x2F;&#x2F;www.notateslaapp.com&#x2F;news&#x2F;2296&#x2F;nhtsa-reveals-tesla-c...</a>
mapt8 months ago
I often ask in regards to terminating commercial offers of goods and services with a floating price point:<p>Why? Why not just adjust the price to be commensurate with the cost?
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jerlam8 months ago
Doesn&#x27;t Tesla offer their own car insurance? I doubt they would drop one of their own vehicles, but the first page of search results showed a lot of negative comments.
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