Tesla has been hit with an enforcement action by California’s Department of Insurance (CDI) for routinely denying or delaying customer claims despite years of warnings from the state regulator, according to a new pair of filings .

Tesla’s insurance arm, along with its partner State National Insurance Company, engaged in “willful unfair claims settlement practices” including “egregious delays in responding to policyholder claims in all steps” of the process and “unreasonable denials,” CDI wrote. This has allegedly caused “financial harm” and “distress to policyholders.”

CDI first approached Tesla about these issues in 2022, according to the filings, yet it claims things have only gotten worse. “In 2025, the Tesla Companies have already had more complaints, more justified complaints, and

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