GEICO reportedly cancels coverage for Tesla Cybertruck
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Contributor since / Followers
Contributor since / Followers
2 months ago
Roman Tiraspolsky
- Claiming that the truck does not meet its underwriting standards, GEICO (BRK.A, BRK.B) will reportedly no longer offer insurance to cover Tesla’s (NASDAQ:TSLA) Cybertruck and is terminating coverage for existing policies.
- According to a letter to an insured made public by media sources, the insurance company did not identify which features of the Cybertruck did not meet its underwriting standards, however, it is well known that the vehicle has been plagued with operational issues including a faulty rear camera, accelerator pedal that can cause the vehicle to accelerate at full speed, exterior rusting, loose trim parts, and large blind spots.
- While some issues have been addressed through a recall, others are attributed to design flaws.
- The company has not yet responded to Seeking Alpha’s request for comment.
- GEICO is a wholly owned subsidiary of Berkshire Hathaway (BRK.A, BRK.B).