Insurance arm in Tesla accused of “terrible delays” and “regular failures” by CA organized

Tesla has been subjected to enforcement by the California Ministry of Insurance (CDI) to deny it or delay customer claims routinely despite years of warnings from the state organizer, according to A new pair of files.

“The insurance arm in Tesla, along with the National Insurance Company for its partner in the country, participated in” the practices of the settlement of unfair claims “, including” the terrible delay in responding to the demands of the document holder in all steps “from the process and” unreasonable denial “. He claims that this caused” financial harm “and” distress for documentary holders. “

For the first time, CDI approached Tesla on these issues in 2022, according to the files, but it claims that things became worse. “In 2025, Tesla companies had already had more complaints, more than justified complaints, and committed more violations than they were in the previous three years,” the organizer wrote.

Tesla and State National may face penalties of up to $ 5,000 per “illegal, unfair or deceptive” and up to 10,000 dollars for each “deliberate” verb, according to the files. Companies have 15 days to respond.

The implementation procedure can have legal effects on Tesla. In July, the company was subjected to a proposed collective suit on allegations that The company was intentionally late and reduce the claim payments. On Friday, CDI wrote that the actions of Tesla have created “a possible exposure to the responsibility for the third party.” Tesla and the National State of National did not respond immediately on the request for comment.

Tesla launched an internal insurance product in 2019. The idea was to provide cheaper installments and faster service. But it started a rock start. The site was over again and repeatedly Higher expectants of the owners. However, Musk promised to be a “revolutionary” product.

After only three years, according to the CDI files, the organizer noted “a noticeable increase in consumer complaints of demands” against Tesla. So in December 2022, CDI started meeting with Tesla and State National.

The organizer said that he learned that the position of the “head of the claims” in Tesla was vacant for several months. The companies also accused not to report the problems of treating claims.

As a result, CDI Tesla and State National have been subjected to a kind of test period: the organizer monitored companies’ efforts to reduce these violations for a period of six months. Tesla and State National “Approved” that they reduced the volume of claims and employees wanted to deal with them, according to CDI, and promised to enhance employment.

It took Tesla until April 2023 to employ a new head of the demands. During the rest of that year, Tesla and State National told “the improvements in the quality of” the treatment of their claims and “the solution to consumer complaints.”

Later that year, Reuters published An investigation into the insurance arm in Tesla That showed things was not very pink.

CDI reached the same perception in 2024. The organizer noticed a “significant increase” in each of the consumer complaints against Tesla and “violations of law”, according to the stadiums. CDI 83 received consumers’ complaints against Tesla in 2022, but in 2024, this number jumped to 829. In 775 of these cases, CDI found that Tesla had violated the state insurance law.

Things have worsened, according to CDI. During September 22 this year, the organizer received 1,481 complaints against Tesla, and 1969 set insurance violations.

In total, since 2022, CDI said that Tesla has accumulated nearly 3,000 violations of the government insurance law. Most of these violations involve Tesla’s failure to respond to customers within a mandatory 15 -day period. CDI said he had set 166 violations in which Tesla was made to conduct a “comprehensive, just and objective investigation” in a claim.

The organizer wrote: “Tesla has been repeatedly notified of the cases of claims and violations of the law,” the organizer wrote. “While (Tesla) is repeatedly committed to improvements, the number of complaints and justified violations continued to be stabilized, indicating the failure of (TLSA) to correct its practices.”