Tesla’s Cybertruck vehicle, designed to be one of the most futuristic vehicles, has faced an unforeseeable roadblock. Insurance providers and companies are refusing to cover it. Because of its distinctive design, which is marketed and perceived as practically unbreakable and “armoured,” the Cybertruck is posing challenges for insurers who view it as a liability rather than a secure or safe investment.
There are rumours that the vehicle doesn’t fit the requirements for underwriting. It was announced that GEICO, a well-known insurance provider in the United States, would no longer offer new insurance policies and would discontinue its current coverage for Cybertrucks. GEICO even sent Tesla a letter stating that the Cybertruck does not adhere to their underwriting guidelines, and that is why they have decided to pull away.
The vibrant Cybertruck Design: A two-sided sword
The Tesla Cybertruck’s sharp and outstanding design and specs have made a name within the automotive industry. Adventuresome customers find its stainless steel body appealing because it is advertised as being resistant to dents and scratches. However, insurers are hesitating because of this same design. Perhaps they feel as if it is a loss for them if they are to cover the vehicle.
When it comes to repairing the Cybertruck, if it is damaged, it is not an easy task. The vehicle is made of ultra-hard material, making repairs complicated and expensive too. Therefore, insurance companies are concerned about the costs that come with repairing and the form of damages that are associated with the Cybertruck and because of this, it could surpass the normal repair costs.
Furthermore, concerns regarding the Cybertruck’s road safety are raised by its futuristic features, namely its enormous size and unusual appearance. The possible dangers of insuring a vehicle that doesn’t cleanly fit into the current truck or car classifications make insurers cautious, and that is why there is back-and-forth communication between insurers and Tesla.
Insurance companies adopt a watchful attitude; they are hesitant
Overall, it is now evident that insurance firms, whether they are corporate or motor insurance providers, do not wish to be held liable for the Cybertruck. According to a Canadian Cybertruck owner, the majority of the biggest auto insurance companies in the nation have declined to insure their vehicles. Others questioned his Cybertruck coverage, arguing that it was an armoured vehicle, while others just refused to participate.
In a post on social media, the Canadian Cybertruck owner, known as Man Snow, wrote,
“CYBERBEAST INSURANCE HELP! Could anyone provide a reference for a broker/insurance company that will insure the Cybertruck Cyberbeast at a reasonable rate? Most companies I have contacted are refusing to quote the Cyberbeast, but there is no problem with the lower-value dual motor set-up.”
As he continued expressing himself in his post, Snow described the reasons why he was turned down by several Canadian insurance companies, with Economical Insurance providing the most unexpected response. Because the firm views the Cybertruck as “an armoured vehicle,” Economical declined to give coverage for it. Unfortunately, other insurance companies willing to cover are too expensive.
Potential buyers of Cybertrucks are put in a challenging situation by this rejection. Owning a truck without insurance turns into an unfeasible and dangerous endeavour, especially in areas where insurance is required. In order to create customised plans that take into account the special characteristics of the Cybertruck, Tesla might need to work with insurers before they lose a large market share.
However, because the Cybertruck is “an armoured vehicle,” this is the first occasion we have heard of an insurance company declining to cover it. Although Tesla has demonstrated that the Cybertruck’s body can deflect bullets from a variety of small and medium-sized firearms, this only applies to the stainless steel panels, and it’s unclear why the insurance companies would deny coverage even if the Cybertruck was fully armoured.