No, Geico isn’t canceling insurance coverage of Tesla Cybertrucks

In October, multiple social media posts claimed Geico, the third-largest car insurance company in the U.S., is canceling coverage of Tesla Cybertucks.

“GEICO cancels all Cybertruck insurance plans and says they are uninsurable crap,” said an X post with over 1 million views.

Some people who commented on the posts questioned if the claims are true.

THE QUESTION

Is Geico canceling insurance coverage of Tesla Cybertrucks?

THE SOURCES

• GEICO 
• Consumer Reports
• Independent VERIFY test
• Lynne McChristian, director of the Office of Risk Management and Insurance Research at the University of Illinois, Urbana-Champaign

THE ANSWER

No, Geico is not canceling insurance coverage of Tesla Cybertrucks.

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WHAT WE FOUND

Geico says it is not canceling insurance coverage of Tesla Cybertrucks, like viral posts falsely claim.

The claims appear to stem from an X post from Oct. 5. The original post has since been deleted but a screenshot was shared on Reddit.

In the X post, a person claiming to be a Cybertruck owner named Robert Stevenson said Geico sent him a letter stating the company can no longer insure his vehicle. 

“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,” the letter, which was included with the post, reads.

“We have taken this action for the following reason(s): We are unable to insure your 2024 TESLA CYBERTRUCK xxxxxxx because this type of vehicle doesn’t meet our underwriting guidelines,” the letter continues.

Geico acknowledged that some customers may have received notices that said their insurance would not be renewed. But a company spokesperson told VERIFY that the insurer still “has coverage available nationwide for the Tesla Cybertruck.”

Geico says it is currently in the process of contacting customers who received a nonrenewal notice. We also went to Geico’s website and we were able to obtain a quote for a new Cybertruck policy. 

The claims come less than two weeks after Tesla issued its 5th Cybertruck recall since the vehicle went on sale late last year.

On Sept. 26, Tesla notified the National Highway Traffic Safety Administration that the display screens in the trucks may remain blank for up to 8 seconds after a driver shifts into reverse. The U.S. requires those screens to activate with a rear view within two seconds of shifting into reverse.

Tesla has released a free software upgrade to address the issue and owner notification letters are expected to be mailed Nov. 25.

In June, there was a recall to fix problems with trim pieces that can come loose and front windshield wipers that can fail. Two months before that, some Cybertrucks were recalled because the accelerator pedal could stick.

Cybertruck owners may contact Tesla customer service at 1-877-798-3752 or the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 or go to www.nhtsa.gov for more information on the recalls.

Although Geico says it is still insuring the Cybertruck nationwide, insurance experts told Consumer Reports that insurers can refuse to cover people based on the kind of car they drive, especially if the vehicle is considered high-risk.

“The type of car does indeed matter — always has. Sometimes insurers change their underwriting guidelines to limit what they feel comfortable insuring. It always comes down to some data point that reflects increased risk,” said Lynne McChristian, director of the Office of Risk Management and Insurance Research at the University of Illinois, Urbana-Champaign.

For instance, in February 2023, Progressive and State Farm decided to stop issuing new insurance policies in some areas for certain Hyundai and Kia vehicles due to an uptick in thefts.

The Associated Press contributed to this report.