Overview

• The California Department of Insurance issued Accusations and Notices of Orders to Show Cause on October 3 against Tesla Insurance Services, Tesla Insurance Company, and State National Insurance Company.
• State filings allege systemic claims-handling failures including egregious delays, unreasonable denials, inadequate investigations, and failure to inform policyholders of review rights.
• Regulators report nearly 2,000 consumer complaints through September 2025, more than 500 deemed justified, and over 2,000 regulatory violations tied to the insurers.
• The companies face penalties up to $5,000 per unlawful act or $10,000 per willful violation, along with potential suspension or revocation of their authority to sell or underwrite insurance in California.
• The firms have 15 days to respond before a possible administrative hearing; Tesla Insurance Services brokers policies while Tesla Insurance Company and State National handle underwriting and claims.