The Cybertruck Is Such a Mess That Insurance Companies Are Refusing to Even Cover It

Not even insurance companies want anything to do with it.

Truck Putz

Tesla's Cybertruck is turning out to be a full-blown disaster.

Sales are circling the drain, with the Elon Musk-led automaker selling a mere 4,306 Cybertrucks in the second quarter of 2025, a stunning 50.8 percent drop over the same period last year.

Resale values are cratering as well, with the value of a used Cybertruck plummeting by more than 30 percent over the span of a year.

Even just insuring the stainless steel behemoths is turning into a massive headache. Owners insured through Hanover Insurance are being informed that their policy is being terminated.

That's exactly what happened to Illinois-based owner Tobias Troy Vahl, as flagged by TorqueNews last month. Hanover Insurance cited the vehicle's low production volume and its high repair costs for terminating his policy.

It's a damning predicament, highlighting just how much of a hot potato the electric pickup has become. Apart from turning into a highly politicized lightning rod, the Cybertruck has proven itself to be an expensive-to-repair and issues-riddled lemon. It's a warning sign for the carmaker, which is already struggling with nosediving demand worldwide and plummeting sales.

Expensive Paperweight

The news comes after insurer GEICO announced last year that it would no longer insure the Cybertruck.

Owners have long complained of sky-high monthly premiums, reaching almost $1,000 in certain cases. Insurance marketplace Insurify found earlier this year that the average owner is paying $3,392 a year, or $282 a month, compared to the national average of just $2,336.

The truck, which started out as one of Musk's most beloved "pet projects," has been mired in controversy for years now. The cracks started to show early on, with an extremely inflated price and terrible range.

It's already been hit with eight recalls, from a trim piece that trapped the accelerator in the downward position to faulty inverters that turned the truck into a 6,600-pound brick to an enormous trim piece that peeled off at high speeds.

Even driving through a car wash without a special mode enabled has caused the vehicle to fail completely.

In other words, the reasons not to buy a Cybertruck have far eclipsed any rationale for buying one — and with insurance companies refusing to touch the thing, that reality has never been more evident.

More on the Cybertruck: If You Try to Sell Your Cybertruck, You Are Going to Get a Terrible Surprise