Tesla has been beaten with an application action of the Department of Insurance (CDI) of California for routinely denying or delaying customer claims despite the years of warning of the state regulator, according to A new pair or fillings.
Tesla’s insurance arm, together with its associated national insurance company, was dedicated to “deliberate unfair claims liquidation practices” that include “atrocious delays in response to the claims of policy holders in all steps” of the process and “unionable”. This has allegedly caused “financial damage” and “insured anguish.”
CDI approached Tesla for the first time about thesis problems in 2022, according to the presentations, but states that things only have the worse. “In 2025, Tesla companies have already had more complaints, more justified complaints and committed more violations than in the previous three years combined,” the regulator wrote.
Tesla and National State could face sanctions of up to $ 5000 for each “illegal, unfair or misleading act” and up to $ 10,000 for each “intentional” act, according to the presentations. Companies have 15 days to answer.
The application action could have legal effects of Tesla. In July, the company hit with a collective claim to propose about accusations that the Deliberately company payments of delayed and minimized claims. CDI wrote on Friday that Tesla’s actions may have created “potential exposure to the responsibility of third parties.” Tesla and State National did not respond immediately to a request for comments.
Tesla launched its internal insurance product in 2019. The idea was to sacrifice cheaper premiums and a faster service. But it has a rocky start. The website was blocked repeatedly, and when it was not, it offered quotes that were far away Higher than the owners expected. Even so, Musk promised that it would be a “revolutionary” product.
Only three years later, according to the presentations of CDI, the regulator noticed a “marked increase in complaints of consumers related to claims” against Tesla. Then, in December 2022, CDI begins to meet with Tesla and State National.
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The regulator said he learned that Tesla’s “head of claims” had been vacant for months. He also accused companies of not informing claims management problems.
As a result, CDI submitted Tesla and National State to a kind of trial period: the regulator monitored the companies’ efforts to reduce these violations for six months. Tesla and the National State “admitted” that they had underestimated the volume of claims and the request of personnel to handle them, according to CDI, and promised to strengthen the hiring.
Tok Tesla was needed until April 2023 to hire a new chief of claims. During the rest of that year, Tesla and State National “reported quality improvements” or their claims management and the “resolution of consumer complaints.”
Later that year, Reuters published An Intla research insurance arm That showed that things were not so pink.
CDI reached the same realization in 2024. The regulator noticed a “significant increase” in both consumer complaints against Tesla and “violations of the law”, according to the futures. CDI had received only 83 complaints from consumers against Tesla in 2022, but in 2024, that number increased to 829. In 775 of those cases, CDI discovered that Tesla had violated the state insurance code.
Things only have the worst Goths, according to CDI. Until September 22 or this year, the regulator received 1,481 complaints against Tesla and identified 1,969 insurance code violations.
In total, since 2022, CDI said that Tesla has accumulated almost 3000 violations of the State Insurance Law. Most of these violations involve Tesla not to respond to customers within the mandatory period of 15 days. CDI said he attacked 166 violations in which Tesla presented an “thorough, fair and objective investigation” in a claim.
“CDI repeatedly notified [Tesla] or his badly demonstration and violations of the law, “the regulator wrote.” While [Tesla] repeatedly committed to improvements, the number of complaints and justified violations continued to increase, demonstrating [Telsa’s] Do not correct your practices. “
