Insurance Companies Are Canceling Tesla Cybertruck

Low production numbers may be an excuse have read because of their stainless steel body Cybertrucks are very dangerous in a collision.

Small sample for risk assessment... dangerous to other road users... prone to vandalism... I'm sure that insurance companies aren't having to try too hard to find reasons for denying coverage.

Plus it's a small population with ultra high risk. Not worth it I would not do it.

It's one of the more lawful ways to get out of coverage I guess... Tesla's own insurance barely makes a profit if at all since the cars are way too prone to be totaled.

Also, they keep spontaneously ejecting parts.

Correct me if I’m wrong, but it hasn’t been tested by IIHS because of the low numbers.

Betcha this won’t stop the idiots from driving them around.

it's a little annoying that they're casting it as 'insurance companies' are canceling policies when it's multiple owners from a single insurance company in the article. i have no doubt that this is a hard vehicle to insure, and a total failure on the part of tesla, but i kinda hate the tendency to exaggerate things or make them sound more dire than they are

If they can't insure them, they'll struggle to finance them.

Also I'm sure it can be insured easily if your willing to make a payment nearly equal to a mortgage for coverage

>We’ve reached out to Hanover Insurance for further explanation regarding the company’s Cybertruck policy.  Hey, dummy: "*it poses an extraordinary expense for repair or replacement under comprehensive or collision coverage; therefore, we are removing the Tesla Cybertruck from the policy.*" Did you miss the part where they already provided the explanation? Your truck is profoundly unpopular and that makes it more expensive to repair; when you buy dumb crap the insurance company doesn't like having to be on the hook for keeping your shit un-fucked. They don't owe you a policy for your look-at-me mobile.

Torque News is clickbait for CT drivers. They report information others don't, but it's always breathlessly hyped.

I wouldn’t insure Teslas with FSD, SFSD, UFSD or whatever it is called installed. If insurance companies can decrease your rates when you have added safety features, certainly they can raise or cancel if you have unsafe ‘mods’.

They tested it a week or so ago but haven't yet released results.

Now with 100% less Google tracking: https://www.torquenews.com/11826/insurance-companies-are-canceling-tesla-cybertruck-coverage-citing-low-production-numbers-say

The drivers are also douche bags.

If your bank finds out you canceled insurance on your financed vehicle they’ll give you like 30 days or so to get a policy. If you don’t they’ll automatically throw you on their own type of policy that’s expensive as fuck because comp and collision are required

CT can buy insurance directly from TSLA, right?

Usually they don't even bother with that. They just repossess the vehicle because you broke the terms of the loan agreement.

For most cars, they know they can cut their losses by dumping the car at auction. With a Cybertruck's pricetag and low resale value, the losses could be quite large. If I were in bank underwriting, I'd avoid them just to save the headache.

Yup. Tesla Insurance pays out over $0.92 for every $1.00 they receive in premiums. So there's no way they can be making a profit after accounting for typical operating expenses.

I just remember getting a letter like that from my bank years ago when my insurance company forgot to send them out a proof of coverage letter. My insurance agent apologized and explained that’s what they definitely would have done. Maybe it’s different now? This was pre Covid

they are certainly taking a loss, this is a very bad number for an insurance company.

I'll agree that it's some percentage, but I doubt it's 100.

I mean, short term investment. Technically an insurance company can actually run a little bit over 1:1 and still be solvent. But yeah, those margins are still very low.

Hey - Las Vegas was built on thinner margins than that.

Also no wholesale parts market. Body shops won't touch it.

But for how long?

In some states insurance is required to operate a vehicle on public roads

I'm sure Loyds would take them.

No, you misunderstand.  Prior poster is saying the underwriting loss ratio is around 92%.  This is before expenses (40%) and investment income (5%). Numbers are fictional but in the ballpark for typical companies.

Huh . . . How the heck does insurance have 40% expenses?!

Well they generally do not want to suggest they are loosing money on it. Easier to just say is specialty vehicle. The accident rate and liability rate is extremely high. The number of deaths to date for such a low production vehicle is likely now 10 times higher then the US average. That is not normal.

Advertising, thousands of workers, have to pay adjusters, buildings.

It is one the highest options for insurance. But ya you likely can.

I was under the opposite impression. But buying one in the first place is financial malpractice.

They literally started testing like a month ago dude. Also tested by the NHTSA too.

Management salaries, bonuses and other benefits.

I doubt that's a problem, Tesla has parking lots full of spares.

What's the result?

Five stars. https://www.cbtnews.com/nhtsa-awards-teslas-cybertruck-five-star-safety-rating/

Nobody in Florida even has house insurance anymore, so driving the cyber Edcel without coverage is nothing. In any case, only Florida Man is dumb enough to buy the monstrosity.

“For your look at me mobile” 🎯

For anything you want to do with a vehicle, there is a better option than the Cybertruck. There are better trucks. There are better electric vehicles. There are even better electric trucks. There are cars that are cheaper, go farther, last longer, carry more, etc., etc. By any metric, there is a better vehicle for any task you need a vehicle for than a Cybertruck. ...Except drawing attention.

State Farm insurance paying around 280 a month

Elon is richer than most insurance companies. He should ensure CTs. Anyone who buys a car or truck should check the insurance cost. CT buyers don’t know sh\*t.

If that isn't a sign that regulatory bodies aren't working as they should I don't know what is.  Just the simple fact that you need to keep cool and remember where the emergency release is to open the door in case of a battery fire should disqualify it.

Funny you say this as Tesla actually do have it’s own insurance for Tesla car buyers.

Auto manufacturers can offer insurance on their vehicles. So the risk is not driving an uninsurable car, it is being trapped into having to overpay to a sole provider.

Bro relax, it’s a crash test, not a scavenger hunt. NHTSA checks if you survive the impact. The criteria is documented.

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I tried to do a ninja edit on “too try too hard” but I got distracted and misplaced my correction.  Kinda makes your brain itch, doesn’t it?

You…you could still change it.

You sounded desperate. I overcame my inner sadist just for you.

Bless you friend

I think its safe to say the Cyber Truck is a flop. I cant think of anyway to massage this or make it look better than what it is.

Deuce bag. I like what you did there, whether you meant it or not.

Fucking. Lies.

The main cost in most businesses is people. Now think about a service business like insurance and the staffing cost ratio is even higher. Even with data, automation of process and digitalisation of interfaces with the customer you need people to manage the business of insurance.

there are also better status symbols at that price point TBH

Yeah. But unless they start putting Yeakel and deaths heads on other vehicles, nothing will surpass the attention they desire.

Not when you’re thirsting for a tech bro Nazi.

Only… some?

So is the mobile crematorium part

I think they’re only licensed in a few states though

And it should be rated 50/50 on whether the person you ran over survives.

yeah, expensive insurance on teslas in general and i expect it will just get worse for cybertruck owners.

so if no one will insure the CT, does that mean it will be impossible to legally drive it in states that require insurance?

Honestly, if you were stupid enough to buy one of these POS, you won't mind this. (and deserve it)

It presently sells 3x the R1T’s figures. Sales figures are not the reason. Perhaps the unusual design that is certainly extremely difficult to repair.

if you can insure a p1 then a cybef truck isnt the issue...also tesla has iys own insurance at $135 a month 🤷‍♂️ maybe its the drivers record