Tesla insurance companies under legal fire

[flyinglow]

FYI... The California Insurance Department on Friday accused a couple of Tesla insurance companies of “ongoing systemic failures” and “unfair” practices that include not responding to auto policyholders’ claims within 15 days as required by law; failure to thoroughly investigate claims; failure to pay claims after accepting them; and failing to respond to the department.​

The allegations of nearly 3,000 violations stemming from 2,642 complaints from 2022 through September 2025 could result in total fines of up to $29.1 million. The companies, which the insurance department said largely insure Tesla drivers, could also get their licenses to operate in the state suspended or revoked.​

The accused companies include State National Insurance, for which Tesla Insurance Services acts as an agent. They have 15 days to respond and show cause as to why the insurance commissioner should not impose fines, and a hearing will be scheduled within 30 days of the accusation. From CalMatters newsletter today. Maybe pay Elon a little less and pay owners' insurance claims.​

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[Cybergirl]

Tesla pays Elon $0.00.

 

[hemiarch]

Tesla pays Elon $0.00.

Accurate

 

[flyinglow]

They pay him in stock

 

[sefar]

I represent folks on a daily basis whose claims have been denied by their insurance company. Some deny any claim they can to delay pay outs, others rarely deny a claim without good reason.

State National is not a company I would ever recommend. If Tesla is acting as their agent, Tesla is benefiting from that relationship by receiving a share of the premiums I suspect. Anytime you are dividing the premium, you put pressure on profits.

 

[eser50]

Hopefully that lights a fire under their ass. When I tried to file a claim last year it took them over a week got get back to me and were so useless about everything after that. I guess I was allowed one text a day. I could only hope to receive a response the same day to follow up on an answer I received to a question I asked the day before.

They had me doing all the leg-work and submitting paperwork to get my wife's car repaired.
I ended up just paying out of pocket since it was only a couple hundred more than my deductible and then I cancelled my policy with them.

 

[HaulingAss]

They pay him in stock

Not a single share for over 8 years! Elon has been working for free. The Board of Directors is trying to fix it, but they have to abide by the court ruling. Tesla and Elon is under attack from all sides.

 

[DJAlan2000]

FYI... The California Insurance Department on Friday accused a couple of Tesla insurance companies of “ongoing systemic failures” and “unfair” practices that include not responding to auto policyholders’ claims within 15 days as required by law; failure to thoroughly investigate claims; failure to pay claims after accepting them; and failing to respond to the department.​

The allegations of nearly 3,000 violations stemming from 2,642 complaints from 2022 through September 2025 could result in total fines of up to $29.1 million. The companies, which the insurance department said largely insure Tesla drivers, could also get their licenses to operate in the state suspended or revoked.​

The accused companies include State National Insurance, for which Tesla Insurance Services acts as an agent. They have 15 days to respond and show cause as to why the insurance commissioner should not impose fines, and a hearing will be scheduled within 30 days of the accusation. From CalMatters newsletter today. Maybe pay Elon a little less and pay owners' insurance claims.​

First of all, Elon Musk earns a whopping $0.00 a year!! That's right... His 'deal' was that he would get paid as the company MADE MONEY... Too bad ALL CEO's aren't like that!

Second, Tesla doesn't pay owners insurance claims... The insurance UNDERWRITERS do (many insurance companies use underwriters btw) so why should TESLA pay anything if you get in an accident (that is your fault - otherwise the other drivers insurance pays).

Third, by DEFAULT, insurance companies try NOT to pay claims or not to pay as much... AND, get this... They DRAG THINGS OUT so they can keep their money in lucrative investments earning good interest before they have to pay out ANY claims... That's why there ARE rules like the 15 day rule, which, by the way is 3 WEEKS because it's 15 WORKING days...

But all in all, I have had problems with insurance companies in the past who have dragged the BEGINNING of he process out (even though sticking to the 15 day 'contact' time) by contacting me about 8 days in, then telling me they will get back to me, and then get back to me 2 weeks later only to tell me they have some issue or sort and dragging it out for about a month after that before I even get approval to get it fixed!!

And THEN the fun really starts!! NOBODY seems to have parts for cars these days! When I got in an accident in my Charger (4-5 years ago), it took MONTHS to get it fixed because they couldn't find a HEADLIGHT assembly for the passenger side... LOTS of them for drivers sides though, but I didn't need that one... There was another part also, but I can't remember what it was... something to do with the hood... So, after about a month and a half, I get them started working, but have to wait 3 months to get all the parts!! And of course I can't drive it without a headlight in the meantime...

I tried tracking one down a couple of times myself... Finally found one by accident (pun in tended) in New Jersey!!

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