Tesla faces enforcement action from California’s Department of Insurance (CDI) for allegedly delaying and denying customer insurance claims.

CDI said Tesla’s insurance arm and partner State National Insurance Company engaged in unfair settlement practices that caused financial harm to policyholders.

Regulatory filings show complaints and violations have sharply increased since CDI first raised concerns with Tesla in 2022.

In 2024, CDI recorded 829 complaints and 775 violations, up from 83 complaints in 2022, and by September 2025, totals rose to 1,481 complaints and nearly 3,000 violations.

Most violations involved late responses or incomplete investigations, and Tesla and State National now have 15 days to respond or face fines of up to US$10,000 per willful violation.

🔗 Source: TechCrunch