Tesla Insurance Faces ‘Egregious Delays’ & Systemic Failures
Tesla’s insurance arm accused of ‘egregious delays’ and ‘systemic failures’ by CA regulator.
Matilda
Tesla Insurance Faces ‘Egregious Delays’ & Systemic Failures
Tesla’s Insurance Arm Accused of ‘Egregious Delays’ and ‘Systemic Failures’ by CA Regulator Tesla’s insurance arm is under fire as California regulators accuse the company of “egregious delays” and “systemic failures” in handling customer claims. The California Department of Insurance (CDI) filed enforcement actions alleging that Tesla routinely denied or delayed claims, even after years of warnings. Image Credits:Getty Images According to CDI, Tesla and its partner, State National Insurance Company, engaged in willful unfair claims settlement practices , including unreasonable claim denials and delays at every stage. These actions reportedly caused financial harm and stress to policyholders. Longstanding Complaints Against Tesla Insurance The filings reveal that CDI first warned Tesla about these issues in 2022. However, the regulator says conditions have worsened. In 2025 alone, Tesla allegedly faced more complaints and violations than the previous three years combined . Tesla and State Nat…