Follow us today...
A Tesla Cybertruck owner shares how much money he lost after his all-electric truck was involved in an accident with an E-scooter.
Following the crash, his insurance company decided to total the Cybertruck; however, the insurance provider said it would only pay the current fair market price for the vehicle.
This wouldn’t be too much of a problem; however, the Cybertruck owner bought his truck back in January 2024 at the height of the Cybertruck craze.
After paying a broker $50,000 over MSRP to be one of the first people to own a Cybertruck, all-in, the Cybertruck owner paid $198,000 to purchase the early all-electric truck.
However, now, after the vehicle is totaled, his insurance company (Allstate) is only offering to pay him $77,000, which the insurance provider says is the current fair market value for the vehicle.
The frustrated Cybertruck owner shared his predicament online, and it was later reposted on Reddit.
He writes…
“Last month, I was sideswiped by an E-scooter, and insurance totaled my 2024 Foundation Series Cybertruck.
I had it delivered last January, all in for $198,000.
I paid a broker in California to find one and ship it to me. Their fees were $50k plus fees/taxes (totally reasonable seeing how limited they were.)
Allstate isn't covering that and is hitting me with depreciation. Can I fight this?
Insurance is only offering a $77,000 fair market value.
I still owe $171,500.”
Below his post, the Cybertruck owner shared a picture of a Cybertruck with damage to the driver-side rear wheels. The airbags are deployed, and the truck is stopped in the middle of the road.
This is certainly not an ideal situation. The Cybertruck owner paid $198,000 to buy his vehicle; however, the $77,000 fair market value compensation means he will lose $121,000 on his purchase.
To make matters worse, the Cybertruck owner still owes the bank $171,500. This means he will need to pay $94,500 out of pocket for a totaled vehicle.
On the face of it, this might seem like a grave injustice committed by the insurance company; however, sadly, looking at the current Cybertruck secondary market, $77,000 is about the fair market value for a similarly spec’d Cybertruck.
Let alone a year-old Foundation Series Cybertruck with high mileage; you can currently hop on Tesla’s online configurator and order a brand new Cybertruck including incentives for about $70,000.
Yes, the totaled Cybertruck is a Foundation Series and includes extra features worth more than $10,000; however, that advantage is negated by the fact that it’s a high-mileage second-hand vehicle.
Overall, looking at this case, it appears the Cybertruck owner messed up when he paid $50,000 over MSRP for the vehicle. Now, he’ll be saddled with a $94,500 loan for a vehicle he no longer even owns.
However, people are still divided about whether the insurance company or the Cybertruck owner is to blame. Please let me know what you think in the comments. Share your ideas by clicking the “Add new comment” button below. Also, visit our site, torquenews.com/Tesla, regularly for the latest updates.
Image: Screenshot from Abstract Ocean YouTube Channel
For more information, check out: A Tesla Cybertruck Owner Shares His Legal Battle Against His HOA After the Home Owners Association Banned Him From Installing a Charger for His Truck. Now, He’s Calling on Elon Musk & Tesla for Help
Tinsae Aregay has been following Tesla and the evolution of the EV space daily for several years. He covers everything about Tesla, from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.
Follow us today...
Comments
The fact that he failed to…
Permalink
The fact that he failed to get Agreed Value coverage is 100% on him. What did he think would happen if a tree fell on it or a hit & run or whatever?? At 70 Grand it's STILL double what it's worth. We are going to see a whole bunch of people taking a bath on these.
We who own real cars have…
Permalink
In reply to The fact that he failed to… by GuyWhoseTruckA… (not verified)
We who own real cars have been "taking a bath" insurance-wise on Teslas for years now. Teslas are considered totaled in even mild fender-benders because the cost of repair is so high. Then Tesla urges the wreck owners to use the insurance money to buy another Tesla. In effect we responsible vehicle owners subsidize the purchases of these junk Teslas, and our rates go up.
You paid 50k over the…
Permalink
In reply to We who own real cars have… by Rich Stan (not verified)
You paid 50k over the trumped up value when they first rolled off the assembly line and now you're complaining about being upside down? You were never in a good place with this. I think it's more concerning that this rugged, bullet proof vehicle was totaled after a scooter side swiped the car.
I agree you definitely need…
Permalink
In reply to The fact that he failed to… by GuyWhoseTruckA… (not verified)
I agree you definitely need excellent coverage for a new vehicle but most important is to buy the gap insurance!
Gap insurance covers you in the event of a loss and there is a gap such as this in the market value based on what you paid for it. If he/she has gap insurance they wouldn't be owing a penny when the vehicle is totaled, with the exception of the deductible.
if you need gap insurance,…
Permalink
In reply to I agree you definitely need… by Bradford Van Dam (not verified)
if you need gap insurance, you can't afford what you are trying to buy.
Ironic because giving your…
Permalink
In reply to The fact that he failed to… by GuyWhoseTruckA… (not verified)
Ironic because giving your Cybertruck a bath it will famously void its warranty.
Reddit user post is fake. He…
Permalink
Reddit user post is fake. He posted an old picture of an accident with a Toyota Corolla back in December 2023.
Hard to believe that so many…
Permalink
In reply to Reddit user post is fake. He… by Fake story (not verified)
Hard to believe that so many people are falling for this.
So because he posted a…
Permalink
In reply to Reddit user post is fake. He… by Fake story (not verified)
So because he posted a picture of a Corolla over a year ago this current post is fake? Could you give some detail on how that indicates this is fake?
The picture is featured in a…
Permalink
In reply to So because he posted a… by Rich Stan (not verified)
The picture is featured in a Daily Mail article from 29-Dec-2023,
www.dailymail.co.uk/sciencetech/article-12910273/cybertruck-accident-california-tesla-ev-toyota-demolished.html?ico=most_shared_articles_mol.web.desktop_
So it isn't actually from a Jan 2025 incident involving a scooter.
The reporter here should have run a basic reverse image search before posting this story.
My instinct here, regardless…
Permalink
My instinct here, regardless of how dumb this guy was paying that price, is to blame the insurance company for being stereotypically evil. But then again, just because he was that dumb, doesn't mean the insurance people have to be.
The insurance company paid…
Permalink
In reply to My instinct here, regardless… by Jivebernie (not verified)
The insurance company paid out what it is contractually obligated to pay: fair market value. There is a specific additional rider you can add if you owe more than the vehicle is worth. It is called GAP coverage.
I am not a fan of insurance companies but "they" did nothing wrong in this case.
Omg you're serious. You…
Permalink
Are you serious? You chose to pay $50000 to be "the first" to get one of these hideous monstrosities as a vanity purchase and you are whining about an insurance company not paying you for the inflated price and your foolish 50k added expense. Oh whine again to the rest of us that are concerned about $10 eggs. Wow take the loss and STFU. You narcissistic spoiled twit.
LMAO this is EXACTLY what I…
Permalink
In reply to Omg you're serious. You… by Artelle Summers (not verified)
LMAO this is EXACTLY what I was thinking. Sum1 who is so excited to be the 1st to own probably 1 of the UGLIEST vehicles ever made on planet earth that they pay FIFTY THOUSAND DOLLARS just for some 1 to find it for them & however much over MSRP on top of that & THEN doesn't pay for gap insurance to cover his @$$ for the reckless irresponsible spending to be the cool kid with the new shiny butt ugly toy is upset now cuz he's been offered even MORE than the thing is worth now... The nerve of some narcissists! Some ppls kids I tell ya!
Yup!
Permalink
In reply to Omg you're serious. You… by Artelle Summers (not verified)
Yup!
Well said. Not the other…
Permalink
In reply to Omg you're serious. You… by Artelle Summers (not verified)
Well said. Not the other insurance customers responsibility to pay your fees to purchase a ‘truck’ that gets totaled by an e-scooter.
Unfortunately, the insurance…
Permalink
Sadly, the insurance company is not required to offer you what you paid minus depreciation. They are required to make a fair offer considering current market trends such that you can replace with like kind. Given he was offered $77k and that's the going rate for a Cybertruck, that is a fair offer. You're making an investment betting that the price of a Cybertruck isn't going to go down when you pay that much over MSRP just to be a part of the crowd that got in first. There is no insurance for that.
That is why you are offered …
Permalink
That is why you are offered "GAP" insurance when financing a car. It pays the difference between what the insurance pays and what you owe the bank.
It still won't cover the $50K out of pocket you paid to get the car.
It's not the insurance companies fault you overpaid.
Why did I have to scroll to…
Permalink
In reply to That is why you are offered … by MBJ (not verified)
Why did I have to scroll to find this?
Yes, any car you buy, you put GAP on it. Unless you put like 60% down.
Whether it's a new Honda, or geometrical shape with wheels... You need GAP!!!
I highly doubt an E scooter…
Permalink
I highly doubt an E scooter caused enough damage to total the CT. and there are no photos showing the damage unless you consider the yellow towell stuffed in the drivers window. I call BS. The fact that the owner was too impatient to wait, he dumped an extra 50K to a broker to be the first kid on the block to have one. That will not fly with insurance companies. The more expensive a vehicle is, the more it will depreciate so unless you plan to keep it until it dies, Most automotive purchases will be a losing proposition.
Truck can stop bullets but…
Permalink
In reply to I highly doubt an E scooter… by Paul Sandgren (not verified)
Truck can stop bullets but not e scooters. :)
Cybertrucks, like all Teslas…
Permalink
In reply to I highly doubt an E scooter… by Paul Sandgren (not verified)
Cybertrucks, like all Teslas, are considered totaled by insurance companies for even minor damage. The reason is Teslas are extremely difficult to repair - in the case of the Cybertruck especially if there is any structural damage AT ALL it is impossible to repair.
Don't spend $50K over…
Permalink
Don't spend $50K over sticker! So f-ing stupid
I read somewhere that…
Permalink
I read somewhere that apparently the scooter sustained only minor damage, is still drive-able and will be repaired to "like new" condition for a few hundred dollars.
I am honestly more curious…
Permalink
I am honestly more curious did the driver of the e-scooter survive?! I mean to have totaled the car that had to be a serious impact..
Wait ... It was totaled by…
Permalink
Wait ... It was totaled by an e-scooter? One of Musk's promises was that if you got in an accident, you would "win".
I think the wrong question…
Permalink
I think the wrong question is being asked... The Cybertruck has shatter proof windows and is touted to be somewhat bulletproof - how was it totaled by an eScooter?
Owner was stupid. First, for…
Permalink
Owner was stupid. First, for overpaying. Seco6,for not understanding how insurance works. Third, for not buying a "declared value " policy.
But God, what a POS truck that get totaled by a SCOOTER!
He should get an independent…
Permalink
He should get an independent appraiser to re-assess value. Allstate's value looks ~$15-20K light and a higher payoff will allow him to replace the vehicle like-for-like. Nothing can fix that he badly overpaid to obtain a CT or that he has a loan payment equivalent to a house on a depreciating asset. Only paying down $27K from the original purchase price in a year means that he barely put any principle into the loan as well.
This entire story sounds…
Permalink
This entire story sounds fishy. How do you spend 200k on a Cyber truck? All in they are only about 120k, and a lot of that is stuff for your home, like charger upgrades and gateway. I also find it hard to believe the vehicle was totaled due to being "sideswiped by an E-scooter". I wonder if Tinsae here did any investigative work before posting this story, or if this is just the reposing of some story from social media.