Tesla Cybertruck Insurance Coverage NOT Dropped By GEICO

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The rumor swirling earlier today was that GEICO had dropped Tesla Cybertruck coverage. Reportedly, “the truck does not meet its underwriting standards,” Seeking Alpha summarized. The news was that GEICO would drop existing coverage for Cybertrucks as well as not providing new insurance plans. Here’s a message posted on social media by a Cybertruck owner who got the bad news from GEICO:

The only problem is: none of this is actually true. Well, almost none of it.

GEICO is still providing insurance to Cybertruck owners. “Teslarati reached out to GEICO on Monday morning to confirm that the insurance firm is no longer covering Cybertruck. The insurance company said it still insures Cybertruck for personal and commercial uses,” Joey Klender at Teslarati writes. Coverage is available nationwide.

So, what the heck is going on? This is what’s going on: “Tesla Cybertruck’s gross weight and some potential challenges with parts availability if it were in need of repair, caused customers to receive notices that PPA insurance would not be renewed. However, GEICO said that it would reach out to any customers who might have received this nonrenewal notice, and Cybertruck policies have always been and still remain available.”

Interesting. Without a doubt, the Cybertruck … is not normal. If a Cybertruck gets into an accident or has an issue that ropes in the insurance company, I imagine the costs of repair and delays getting repairs can be quite extreme. No traditional auto repair shop is going to be able to help you, and Tesla is struggling to ramp up production, so who knows if the parts you need will be available anytime soon. Furthermore, the Cybertruck clearly requires some unique and pinpoint manufacturing work to build, and re-building part of a truck could be challenging or could be put at the back of a long queue. We’ll see what comes of this, but it appears that some of these issues triggered an automatic change in GEICO’s system that led to the initial letters being sent out. While we’ve now learned that Cybertruck owners can still get (and keep) insurance from GEICO, one has to wonder if Cybertruck insurance costs are going to go higher. We’ll see.

Of course, as any new model ramps up, production becomes cheaper and easier, and repairs also become cheaper and easier in time. One would assume this would also be the case with the Cybertruck. However, again, because it’s such an unusual vehicle, we have to wait to see how things progress in this regard, and what that means for insurance coverage and costs.

For now, though, no need to panic. Any Cybertruck owners here have any additional info to share regarding Cybertruck insurance?