Well, they (insurance companies in general ) also dropped a lot of homeowners in certain states, rather than simply raising the rates.
Perhaps they have done some market research and determined that there is an inflection point beyond which raising rates would actually reduce profits due to reduced competitiveness
When you have fender bender claims costing 20-40k USD to repair, how do you price that risk?
This is a solved problem. Ask any actuary who specializes in casualty insurance, or read a standard textbook about non-life insurance mathematics.
Other models are not considered insurable by GEICO as well. So likely small pool of policyholders + exorbiant claim payments == not worth the headache