GEICO is Terminating Insurance Coverage of Tesla Cybertrucks

[SC Maintenance]

Lol, who forcing Geico to be an insurance company? They choose to be one, so they should be required to insurance all automobiles.

But in your head telling people to go out and buy another vehicle that is insurable makes sense?

We usually agree that the government has rules for they but not for me, but I disagree with you on this one. Forcing an insurer to insure every vehicle or every person would be counterproductive to the public good. The point of having multiple insurers is for rates to be competitive. To be cheaper insurers try to minimize their potential for loss.

For example, no insurer would want to insure someone with lots of claims. So many states have come up with various versions of shared risk pools. All the insurers pay in, and if one of those people causes a huge loss, the pool helps pay.

The point is to keep insurance affordable for everyone, not entitle everyone to insurance. If you have lots of claims, or a DUI, or drive the wrong kind of car, thats your problem. No one is forcing anyone to drive at all, or drive a CT. But if you do, you need insurance.

In theory if you can afford a CT you should be able to afford to post a bond to self insure - no?

 

[ripcord]

Lol, who forcing Geico to be an insurance company? They choose to be one, so they should be required to insurance all automobiles.

But in your head telling people to go out and buy another vehicle that is insurable makes sense?

Really? Should they be required to insure McLarens? Bugattis? Model T's? Stanley Steamers? At this point, there probably isn't enough data out there for GEICO to know how much to charge for the CT.

 

[KrisZ]

Really? Should they be required to insure McLarens? Bugattis? Model T's? Stanley Steamers? At this point, there probably isn't enough data out there for GEICO to know how much to charge for the CT.

I would be OK with that if I wasn’t required to buy insurance, but I am, hence my argument that it’s one sided and clearly favors corporate interests and profits.

I should clarify something though, because I have a feeling you think I’m in favor of controlling prices and profits, I’m not.
I never claimed they should be required to charge a certain amount, only that they should be required to sell insurance for all automobiles that are registered. How much they would charge for it is up to them.

 

[alarmguy]

Having previously worked in the insurance industry, this is what ran through my mind. Questionable cybertruck build quality aside, you'd think they would just make them outrageously expensive to insure, not just refuse to insure them. Reminds me of all the insurance companies pulling out of Florida for home insurance. Brings a whole new meaning to eliminating risk to their profits.

You know this thought crossed my mind then I saw you post and wondered about this as well.
First off I dont see Geico as a "boutique" insurer and it's looking like that is the type of insurer you will need. Im almost willing to bet this is for many exotic vehicles.

But how about this, Geico's claims system is made up of subcontracted insurance adjusters, independent repair shops. It might be to cumbersome to try to service their CyberTruck customers with satisfactory speedy repairs. It's such an exotic vehicle that adjusters and repair shops trying to figure out firm costs to repair them might be nearly impossible and even if so, very few shops would want to, know how to or need too in their business. We already know the stories of trying to gets parts. It sounds like it could be a litigation nightmare on costs and what is to be replaced, is the battery pack damaged etc.

EVs only make up a tiny fraction of automobiles on the road. I wonder if more models might be affected once claims history start rolling in on EVs as they grow more popular. These vehicles are going to cost you vastly more in insurance than gasoline of the same type.

 

[SC Maintenance]

Having previously worked in the insurance industry, this is what ran through my mind. Questionable cybertruck build quality aside, you'd think they would just make them outrageously expensive to insure, not just refuse to insure them. Reminds me of all the insurance companies pulling out of Florida for home insurance. Brings a whole new meaning to eliminating risk to their profits.

A marketing problem. Lets say they charge $30K to insure a CT. Next headline would be "Geico charges $30K to insure a Tesla" They wouldn't say which Tesla in the headline, or why. But the headline would make everyone immediately believe Geico are just greedy pricks (they are, as is every insurance company, as is everyone owned by Buffet, but thats a different matter).

When your a local contractor you can just bid high. When your a national brand you have lots of things to consider.

 

[eljefino]

Because, while all state governments regulate insurance companies, they do not as a general rule force them to do things that cause them to lose their (assets) on a particular product.

Assigned risk pools.... If you want to sell insurance in some states, you have to take on your fair share of drunk drivers and whatnot.

 

[JeffKeryk]

Insurance companies are in the business of making money; they are not your friend. Try getting a classic Corvette or Oldsey insured... Luckily there are companies who specialize in this.

 

[97prizm]

I am curious as to how the assembly of the cyber truck is different than other Tesla vehicles. Is it the stainless steel?

I was recently rear ended by a Geico policyholder. Going through Geico was unpleasant in the sense that it does not want to use original parts. It took much debate and a fitting of the crappy Chinese bumper cover before my shop was able to get them to pay for the original. Geico is not alone in this regard, but I wonder if the absence of cheap knock off parts makes the insurance proposition unattractive?

I think it will also be interesting to see how the fire risk of EVs, particularly when they are home charging, starts to get rated and how that impacts rates.

Finally does anyone know if Toyota hybrids suffer the same difficulties with fire intensity as do full EVs? I haven’t heard those reports but again I don’t necessarily look for them either.

First off it's the type of stainless steel ie the specifically metallurgy that makes it not crumple or absorb impact. Second Tesla is well known for not ramping up replacement parts, then changing bolt patterns, and assembly processes that cause "Batches of vehicles. " Many states Colorado included require oem replacement parts on the first three years of replacement. The Cybertruck has deplorable fit and finish. If a shop was able to get a new bumper it doesn't mean it would fit or fit well. Look at the early tent made model 3's. Many of the battery coolant pumps were installed incorrectly, then attached with home depot dowels and brackets. Tesla treats vehicles like computers as they'll just "push out software," which doesn't necessarily work with everything. From my reading and chatting with body shops while working for a couple of dealerships insurance companies only have so long to fix your vehicle. Now add as of this morning 10/7/24 Tesla has issued a FIFTH recall for the Cybertruck.

 

[RAVL]

First off it's the type of stainless steel ie the specifically metallurgy that makes it not crumple or absorb impact. Second Tesla is well known for not ramping up replacement parts, then changing bolt patterns, and assembly processes that cause "Batches of vehicles. " Many states Colorado included require oem replacement parts on the first three years of replacement. The Cybertruck has deplorable fit and finish. If a shop was able to get a new bumper it doesn't mean it would fit or fit well. Look at the early tent made model 3's. Many of the battery coolant pumps were installed incorrectly, then attached with home depot dowels and brackets. Tesla treats vehicles like computers as they'll just "push out software," which doesn't necessarily work with everything. From my reading and chatting with body shops while working for a couple of dealerships insurance companies only have so long to fix your vehicle. Now add as of this morning 10/7/24 Tesla has issued a FIFTH recall for the Cybertruck.

Thank you. This is interesting. I wonder then how it passed federal impact standards? Not doubting you, but that would seem to have required some level of absorption of impacts.

 

[JeffKeryk]

GEICO denies dropping CT
Are they or aren't they? Who the heck knows? But I know I can count on BITOG arm chair experts for their supportive knowledgeable posts! Ha!

 

[supton]

My new 2024 F150 Lariat's full coverage by Allstate is $8K/yr.

I thought my insurance was bad! I'm still less than that even with two teenage drivers across 3 vehicles. Might this be your total insurance for all vehicles?

*note to self: do not buy new vehicle*

No wonder why used vehicles are so valuable now...

 

[97prizm]

Thank you. This is interesting. I wonder then how it passed federal impact standards? Not doubting you, but that would seem to have required some level of absorption of impacts.

Vehicles over a certain weight are from my understanding exempt from certain tests. I know that heavy duty trucks have to pass a roof crush test simulating rollovers but if you look at the required it doesn't simulator an actual rollover.

 

[97prizm]

So if your EV catches on fire in a parking garage and catches my vehicle next to it on fire - your insurance is not paying? I don't think that is how it works, or seems like it should not work that way?

A couple of owners recently had their Tesla catch fire in their garage and damage their home. The insurgents company sued Tesla to recoup their costs.

 

[ripcord]

A couple of owners recently had their Tesla catch fire in their garage and damage their home. The insurgents company sued Tesla to recoup their costs.

I see what you did there, LOL.

 

[thastinger]

When I can pay cash for a slightly busted up cyber beast and only carry liability Ins on it, I would probably do it.

 

[Fair enough]

I don’t understand why insurance companies are allowed to pick and choose what they cover. If I’m forced by the government to insure my vehicle, then that same government should force the insurance companies to cover everything that is being driven on public roads.

An I missing something here, besides big lobby money working against the consumer?

Texas and Calif require insurance to register a vehicle? Sounds ok to me. The feds don’t as far as I know. There are some mandates in insurance has to be offered, but at what cost.
One thing about ev is if the battery is just damaged, no fire, etc, they pretty much have to total the car. I can see why insurance companies don’t want to take the risk. Even the plug in hybrids, very expensive battery, and some are not available. So then what do you do.

 

[Dave Hess]

Cybertruck is basically disposable since it’s so expensive to repair.

 

[JimPghPA]

Burning down a house is low cost compared to burning down a 5 story parking garage full of vehicles. Sure, each vehicle owner will turn to their own insurer if the vehicle is covered. But after that is settled, don't those insurers turn to the insurance of the vehicle that started it?

 

[SeaJay]

I had to move two pickups away from Geico last year because they didn't understand California considers trucks commercial registrations. They thought I was using them for a business. It was the craziest thing I ever went through.

Interesting. When living back in NY I registered a 3/4 ton pickup with commercial plates (meaning it couldn't drive on certain roads), insured it on our family auto policies with Geico with no mention of anyone in our family running a business.

At the time the truck exceeded the net weight limit in NY of 5,000 pounds so it had to be registered as a commercial vehicle. I believe the net weight limit for non-commercial vehicles has been increased since then.

 

[Hall]

I was recently rear ended by a Geico policyholder. Going through Geico was unpleasant

Why would anyone be surprised ? They are not on your side nor interested in doing anything beyond the bare minimum. Always use your own insurance company. Always !