Overview

• The California Department of Insurance accused Tesla Insurance Company, Tesla Insurance Services, and State National of willful unfair claims practices including egregious delays, unreasonable denials, and inadequate investigations.
• The companies have 15 days to respond before a potential administrative hearing that could determine whether their licenses to transact insurance in California are suspended or revoked.
• CDI detailed possible penalties of up to $5,000 per unlawful act and up to $10,000 per willful act under the enforcement action.
• Regulators reported steep increases in cases, citing 1,481 consumer complaints against Tesla through September 22, 2025, and identifying 1,969 violations this year, with nearly 3,000 violations since 2022.
• Tesla, State National, and Tesla Insurance Services did not immediately comment, and the filings note potential broader legal exposure including a recently proposed class action alleging delayed and minimized payouts.