Why Your Tesla Cybertruck Insurance Might Get Cancelled

[Desmond Milligan 0]

Why Your Tesla Cybertruck Insurance Might Get Cancelled originally appeared on Autoblog.

Cybertruck Insurance Market Taking A Hit

Tesla Cybertruck owners are encountering an unexpected roadblock in their ownership experience, aside from resale values tanking, that is. Certain insurance companies are pulling the plug on Cybertruck policies, citing the electric truck's declining production numbers as a primary concern. One owner, Illinois resident Tobias Troy Vahl, shared his experience on the Tesla Cybertruck Owners Facebook group, stating Hanover Insurance terminated his Cybertruck policy renewal.

The reason he was given was that they were "unable to adequately rate and underwrite this vehicle" due to limited production volumes. The insurer cited both low production numbers and the vehicle's unique design challenges, particularly the "extraordinary expense for repair or replacement under comprehensive or collision coverage.”

Tesla

Cybertruck Production Halved Versus Previous Year

This insurance dilemma reflects broader market challenges for the Cybertruck. Tesla's futuristic electric pickup has seen demand plummet in the last few months. Specifically, sales of the Cybertruck in the second quarter of 2025 are down over 50% compared to the same period last year, with only 4,306 units sold. Originally, Elon Musk had planned to scale production to 250,000 units per year, making the current low sales numbers particularly concerning for insurers.

The insurance cancellations aren't limited to one company or customer. Geico, the second largest vehicle insurance underwriter began terminating Cybertruck policies in late 2024. Other Cybertruck owners have reported similar experiences with Hanover Insurance, forcing them to seek coverage elsewhere.

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Other Issues Plague The Cybertruck’s Coverage 

The Cybertruck's unconventional stainless steel body and unique design elements create additional uncertainty around repair procedures and replacement part availability. Further, the high cost of Cybertruck repairs are sure to throw a spanner in insurance policies.

It’s a classic catch-22 situation. Low production numbers make insurance companies hesitant to provide coverage, while these challenges can further impact sales. For current Cybertruck owners, there’s no option but to shop around for insurance providers willing to cover Tesla's most controversial vehicle.

Why Your Tesla Cybertruck Insurance Might Get Cancelled first appeared on Autoblog on Aug 19, 2025

This story was originally reported by Autoblog on Aug 19, 2025, where it first appeared.

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