California takes action against Tesla Insurance

The California Department of Insurance has filed enforcement actions against Tesla Insurance Services, Tesla Insurance Company, and State National Insurance Company, citing repeated violations of state claims-handling laws. The actions allege delays in payments, unreasonable denials, and failures to investigate or respond to consumer complaints in a timely manner.

Despite multiple warnings dating back to 2022, the Department says the companies continued noncompliant practices that caused financial harm and distress to policyholders—many of whom are Tesla drivers. The companies could face hearings that may result in suspended licenses and fines of up to $10,000 per willful violation.

According to the Department, the actions were necessary to protect consumers and ensure insurers uphold California’s standards for fair and timely claims settlement.

Bottom Line: Tesla appears to be facing ordinary growing pains.