Summary
The California Department of Insurance has taken enforcement action against Tesla Insurance Services and Tesla Insurance Company for not following the state's claims-handling laws. The companies are accused of delaying payments and not responding properly to customers, which could lead to their license being suspended or revoked if not addressed.
Key Facts
- California acted against Tesla Insurance Services and Tesla Insurance Company for claims-handling violations.
- The companies reportedly delayed payments and didn't respond correctly to policyholders.
- State National Insurance Company, unrelated to Tesla, may also face action.
- Regulators cited over 396 instances of the companies not responding to inquiries within 15 days.
- Tesla Insurance launched in California in 2019 and expanded in 2022.
- Complaints have increased since Tesla acquired Balboa Insurance Company, now known as Tesla Insurance Company.
- Tesla admitted staffing issues but complaints rose again in 2024.
- The companies have 15 days to respond, or they may face a hearing that could impact their ability to operate in California.
