A Geico (BRK.B) customer took to social media to claim that it appears that the insurer is slamming the brakes on providing coverage for a popular vehicle that has been suffering from back-to-back recalls over the past few months.
In a post on social media platform X, which has been reposted to Reddit, a Geico customer named Robert Stevenson revealed that he will be canceling his Geico policy after the insurer sent him a letter informing him that it will no longer cover his 2024 Tesla (TSLA) Cybertruck due to it not meeting “underwriting guidelines.”
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“We would like to thank you for choosing GEICO for your insurance needs,” reads the letter. “After a careful review of your policy records, we have determined that we are unable to continue your insurance coverage for the 2024 TESLA CYBERTRUCK.”
Stevenson claims that he has eight cars with an amazing record and that Geico’s decision makes no sense.
“It makes no sense as there are other more riskier cars out there,” said Stevenson in his tweet.
Apparently Geico car insurance in no longer insuring Cybertrucks because this type of vehicle doesn’t meet our underwriting guidelines
by u/godzilla19821982 in CyberStuck
Other Cybertruck owners have also claimed that their trucks have been dropped from their Geico policies amid recent recalls.
In a statement to TheStreet, Geico denied that it is dropping Cybertrucks from its insurance policies and stated that it “has coverage available nationwide for the Tesla Cybertruck.”
A car insurance company can drop your vehicle for a number of reasons, one of which can be due to the condition of your car. If the vehicle has mechanical issues or is defective in any way, posing a threat to public safety, a car insurance company may decide to drop it from its policy.
Tesla's Cybertruck faces multiple recalls
Tesla’s Cybertruck has been recalled five times since its release in November 2023, which may have contributed to Geico’s decision to withdraw its coverage for Stevenson’s vehicle.
The Cybertruck was first recalled in February for issues with its antilock brake system warning light text being too small to read. Then, it was recalled again in April because its accelerator pedal got stuck when pressed down.
The vehicle was also recalled twice in June due to trim pieces becoming loose/detached when the truck was in motion, and for problems with its windshield wipers, which would stop working due to an electric issue.
Most recently, the Cybertruck was recalled again this month, for the fifth time, for issues with the display screen for its review camera appearing blank for a few seconds after the truck was shifted into reverse.
Earlier this year, customers also complained that the stainless steel on their Cybertrucks is prone to rust.
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“Just picked up my Cybertruck today,” wrote one user on a Tesla Cybertruck forum. “The advisor specifically mentioned the cybertrucks develop orange rust marks in the rain and that required the vehicle to be buffed out.”
Tesla's Cybertruck issues come after Elon Musk, the company's CEO, tweeted in December that the vehicle would be a safer option than other trucks.
“We are highly confident that Cybertruck will be much safer per mile than other trucks, both for occupants and pedestrians,” wrote Musk in the tweet.
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