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“How much will my Cybertruck cost to renew my policy?”
That’s what John Khosravani asks his insurance agent on the Tesla Cybertruck Facebook Owner page. Still reeling from the shock, John recounts how his insurance company dropped the bombshell of the renewal cost for his Cybertruck’s insurance policy in year two of ownership.
John’s frustration is understandable as he shares, “Has anybody else’s insurance almost tripled upon policy renewal? It was already borderline unreasonable. I have no traffic citations or accidents, and it still went up.”
Picture John’s Predicament
Imagine driving your new Tesla Cybertruck for a year. You love the electric truck, and your insurance policy is about to be renewed. However, when you get your renewal notice in the mail, the policy premium nearly tripled from the previous year.
Upon receiving the renewal notice, you are taken aback to see the premium has skyrocketed to $700 per month, equivalent to your truck payment. Unable to bear this financial strain, you inform them of his decision to seek a more affordable insurance provider.
You Find the Best Rates
You contact multiple insurance companies and finally land on Progressive. They have the best rates, but it’s still thirty percent more than your previous policy.
Here is what John says,
“My Cybertruck is a second work vehicle (still mainly driving my last vehicle). It’s a fantastic truck with a few quirks, but I’m not willing to pay almost an additional truck payment for the insurance.”
“I’m paying $4,200 for six months with National General. I just switched to Progressive, but I’m still paying 30% more than the first policy when I bought the Cybertruck.”
Why Are Cybertruck Insurance Rates So High?
Barron says Cybertruck insurance rates tend to be high due to a combination of factors, including the vehicle’s expensive components, the potential for costly repairs, and the likelihood of total losses.
In addition, the Cybertruck’s unique stainless steel construction, coupled with advanced technology like its battery and sensors, makes repairs complex and expensive.
“It’s easy to see a driver paying $3,000 to $4,500 yearly to insure a Cybertruck, depending on where they live. That’s easily 50% more than the average vehicle, but not all that much more considering Cybertruck costs roughly twice as much as the average new car,” says Barrons.
What are other Cybertruck owners saying?
Bradley Fuller says, “Yes, USAA went up 65% on my Cybertruck on my first renewal in May.”
I wrote a report about Rebecca, who was stunned to discover that insuring her new Cybertruck would cost her as much as half of her mortgage payment. Here is Rebecca’s amazing story.
She’s owned a Tesla Model 3 and loved the all-electric car. When the new Cybertruck came out, she was excited to look at the newest Tesla.
Rebecca took it for a test drive and fell in love.
She loved the space, the LEDs, and the covered bed. “I love this; I need one right now,” she says after taking it for a test drive.
She placed an order for the new truck, and it finally arrived. What happened next was a total shock.
Imagine Rebecca’s disbelief when she contacted her insurance agent to insure her new Cybertruck. Having had Tesla insurance for her Model 3, she was confident. However, when she moved to Massachusetts, she was in for a surprise because they didn’t offer Tesla insurance in that state.
Rebecca was left in disbelief when she inquired about insuring her new Cybertruck. Having paid over $500 monthly to insure her Tesla Model 3 in Massachusetts, she was unprepared for the staggering cost of insuring the Cybertruck. Check out the rest of her story here.
How has the recent vandalism against the Tesla Cybertruck affected insurance premiums?
Vandalism targeting Tesla vehicles, particularly the Cybertruck, could lead to higher insurance premiums for Tesla owners. While the impact is uncertain, insurance companies may raise rates, decline to offer new policies in high-risk areas, or even stop offering coverage entirely.
Here’s a more detailed look:
Increased Risk: If vandalism against Teslas continues to rise, insurance companies could view this as an increased risk factor, leading them to raise rates or adjust policies.
Targeted Vandalism: Insurance companies are more likely to increase rates or decline to offer policies when vandalism is targeted at a specific make or model, as it suggests a higher likelihood of future claims.
Comprehensive Coverage: Comprehensive coverage, which protects against damage from events other than collisions, is likely to be most affected by increased vandalism rates.
Potential for Insurance Bans: In some cases, if vandalism is widespread and persistent, insurance companies might even choose to stop offering coverage to Teslas, especially in areas with frequent incidents, as reported by CNN and The Verge.
Impact on Individual Policies: Drivers who have previously experienced vandalism or live in areas with high rates of vandalism could be the first to see their insurance premiums increase, according to CNN and The Mercury News.
Will Geico insure the Cybertruck?
Contrary to some circulating reports, Geico does insure the Cybertruck. The company clarified that while some customers may have received notices stating that their PPA insurance would not be renewed for this vehicle, policies for the Cybertruck have always been available through their commercial insurance division and now remain available via PPA as well.
Barrons says, “Recently, stories circulated on social media indicating Geico wasn’t willing to insure Cybertrucks. That isn’t the case, according to the company owned by Warren Buffett’s conglomerate Berkshire Hathaway.”
Conclusion:
Barrons concludes, “As for the Cybertruck if insurance costs are too high, there’s a simple solution: Buy a cheaper car.”
How About You?
Do you own a Tesla Cybertruck? How much are you paying for insurance? Have you seen a recent spike in your premiums? If so, click the red Add New Comment link below and let us know.
Check out my Tesla Cybertruck story: I Was Worried About My Tesla Cybertruck, So I Parked Away From Everyone. When I Came Out, I Was Shocked to See My CT Dwarfed By Two Ford F-150s
I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you’ll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.
Photo credit: Denis Flierl
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Source: torquenews.com
