Tesla Cybertruck owners are facing a new problem: getting insurance coverage. Several major providers have begun refusing to underwrite the vehicle or have cancelled existing policies, citing difficulties in assessing risk. One Illinois owner reported that Hanover Insurance dropped his coverage, explaining that they were unable to accurately rate and underwrite the truck because of its low production numbers and unique construction. Similar experiences have been shared by customers with GEICO and other firms, suggesting this is not an isolated issue, as highlighted in a report by Autoblog.
The root of the concern lies in the Cybertruck’s unconventional design. Built from stainless steel with a rigid exoskeleton and specialized glass, it is durable but difficult and expensive to repair. Reports of repair bills exceeding $10,000 for relatively minor damage have circulated online. With spare parts limited and repair networks still adjusting, insurers face major uncertainty when estimating potential costs. The small number of Cybertrucks on the road also leaves little historical data to help underwriters price premiums, making insurers more cautious.
Although some companies are backing away, others continue to provide coverage. GEICO has clarified that it still offers policies in most areas, and State Farm has not restricted Cybertruck insurance. Still, many individual owners have received cancellation letters citing underwriting guidelines that the truck does not meet. For drivers with clean records, this has created confusion and frustration, as they are suddenly left scrambling to find alternatives.
The truck’s track record of recalls further complicates matters. Since its launch, the Cybertruck has faced recalls involving accelerator pedals, windshield wipers, and visibility systems. Safety regulators have taken note, and while Tesla has moved quickly to address the defects, they have added to the perception that the truck carries higher liability risks. Combined with its sharp-edged design and stiff body, insurers are weighing potential pedestrian safety issues as well.
Data suggests premiums for Cybertruck owners are already significantly above average. Studies indicate that rates are about 45 percent higher than typical US auto insurance, driven by both repair costs and underwriting uncertainty. If major insurers continue pulling back, buyers may face shrinking options and higher prices, adding an unexpected burden to ownership.
This development could dampen enthusiasm for the vehicle. Production numbers are already slowing, with deliveries dropping sharply in 2025. For a truck that was marketed as the future of automotive design, its biggest challenge may not come from the road, but from the difficulty of finding affordable coverage.