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Some insurance providers are canceling Cybertruck policies due to the truck’s low production numbers.
This follows a sharp decline in Cybertruck demand over the past few months, hitting a new low of an annualized rate below 20,000 units at the end of Q2 2025.
For context, Tesla already has the installed capacity to produce 130,000 Cybertrucks per year, and Elon Musk had planned to double that number to 250,000 units annually.
However, as the Cybertruck is turning out to be a flop, it appears to be causing more issues for current Cybertruck owners.
Last year, we were the first to report that GEICO insurance was denying coverage for Cybertrucks specifically under its personal vehicle insurance category.
Since that story, we have seen several Cybertruck owners, using other insurance providers, sporadically getting denied coverage.
At that time, the main reason insurance companies hesitated to cover the Cybertruck was its unusual shape and choice of materials, which raised safety and repairability concerns.
However, now, as mentioned above, we have our first reports of Cybertruck owners losing their insurance coverage because of the all-electric truck’s low production volume.
Due to the limited production numbers, some insurance companies claim they cannot properly assess the fleet-wide repair costs and liability, forcing them to drop coverage when owners try to renew their policies.
Additionally, insurance providers are citing previous concerns about the Cybertruck’s design and high repair costs.
The first person to report on this development is Tobias Troy Vahl, a Cybertruck owner from Illinois.
Tobias says he had his Cybertruck insured through Hanover Insurance until today, when he received a letter from the company terminating his Cybertruck insurance policy.
According to Tobias, Hanover Insurance cited two main reasons for canceling his coverage: the vehicle’s low production volume and the vehicle’s design/high repair costs.
This is definitely not ideal, and Tobias shared his story on the Tesla Cybertruck Owners group on Facebook.
He writes…
“I got this nice notice from Hanover Insurance today about my Cybertruck insurance renewal. Mind you, ZERO accidents in my life.”
Below, Tobias continues to share the letter he received from Hanover Insurance terminating his coverage.
The letter reads…
“This notice is to advise that we are agreeable to renewing this policy, subject to the following:
The renewal policy will be revised with the following change: Due to the limited production of the 2024 Tesla Cybertruck, we are unable to adequately rate and underwrite this vehicle.
Its design presents a unique challenge, as it poses an extraordinary expense for repair or replacement under comprehensive or collision coverage; therefore, we are removing the Tesla Cybertruck from the policy.”
Finally, Tobias concludes his post by sharing that he lives in Illinois.
It appears Hanover Insurance is “agreeable” to continue Tobias’s overall insurance coverage, provided that the Cybertruck is removed from the policy.
This is surprising, however, looking at the comments, other Cybertruck owners shared that they, too, have received similar notices from Hanover Insurance terminating their Cybertruck coverage.
A fellow Cybertruck owner, Tricia Ellis, writes…
“We were also with Hanover Insurance and got the same notification.
Took all our insurance away from them and went with Farmers! Much better deal! Good luck!”
We’ve reached out to Hanover Insurance for further explanation regarding the company’s Cybertruck policy.
Please let us know what you think in the comments. Share your ideas by clicking the red “Add new comment” button below. Also, be sure to visit our site, torquenews.com/Tesla, regularly for the latest updates.
For more information, check out: A Tesla Cybertruck Owner Says His Glass Roof Started to Spontaneously Crack Due to the Heat – Adds, “The Cracks Spiraled Like a Tornado or a Spider Web”
Tinsae Aregay has been following Tesla and the evolution of the EV space daily for several years. He covers everything about Tesla, from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.
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Source: torquenews.com
