Alas, Cybertruck, we hardly knew ye
A Cybertruck passed us this morning on the way back from the south shore of Rhode Island. My wife remarked that it looked like a rolling dumpster. I’ve certainly never understood the appeal. Apparently, my aesthetic is shared.
“Once one of the world’s most-hyped vehicles, sales and production numbers for Tesla’s Cybertruck have fallen sharply. In the second quarter of this year, the company sold just 4,306 Cybertrucks, a drop of more than 50% over the same period in 2024.
“Now, Torque News reported, some insurance companies are using those numbers to cancel their coverage of the all-electric truck.”
Apparently some Cybertruck owners said they received cancellation notices from Hanover Insurance but had success finding policies with other companies like Farmers Insurance. Maybe they can sell theirs before Farmers cuts them off, too.
Tesla Cybertruck insurance cancellations
“Once one of the world’s most-hyped vehicles, sales and production numbers for Tesla’s Cybertruck have fallen sharply. In the second quarter of this year, the company sold just 4,306 Cybertrucks, a drop of more than 50% over the same period in 2024.
“Now, Torque News reported, some insurance companies are using those numbers to cancel their coverage of the all-electric truck.”
Apparently some Cybertruck owners said they received cancellation notices from Hanover Insurance but had success finding policies with other companies like Farmers Insurance. Maybe they can sell theirs before Farmers cuts them off, too.
Tesla Cybertruck insurance cancellations
Why does car insurance availability react strongly with production rate? There are already plenty on the road that a parts business won’t be dicey for another ~15 to 20 years and even then it’s not actually the insurers’ responsibility that repairs are economical. Is there some thought that theft rates will balloon somehow if new units aren’t hitting some target? My neighbor still drives a Saturn Vue which has had no production for like 15 years and she gets insured.
@Eric,
Read the link I posted.
Hanovers cites things that aren’t influenced so much by production rate but by fleet size. Eventually production rate is a good proxy for fleet size, but today there are very few retirements…fleet size bigger now than when Hanover agreed to underwrite. They cite design, which I agree complicates insurability, but isn’t related to production. But the development probably is good for owners if they look past the short-term shock. It is a small fleet, but concentrating it in fewer insurers likely makes the best of a poor situation. Looking at the body work, kind of wonder why Hanover and others didn’t take a pass on this from day 1.