<div id="readability-page-1"><figure><img width="1600" height="813" src="https://imageproxy.pbkrs.com/https://electrek.co/wp-content/uploads/sites/3/2022/06/Tesla-Insruance-app.jpg/query-cXVhbGl0eT04MiZzdHJpcD1hbGwmdz0xNjAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://electrek.co/wp-content/uploads/sites/3/2022/06/Tesla-Insruance-app.jpg/query-cXVhbGl0eT04MiZzdHJpcD1hbGwmdz0xNjAw"/></figure>California is taking significant enforcement action against Tesla Insurance, alleging the company has been systematically failing to handle claims properly and harming its customers in the state. The California Department of Insurance announced the action, threatening to revoke Tesla’s license to operate in the state and impose significant fines.This isn’t the first time we’ve seen Tesla’s insurance arm in hot water, but this action from a major market like California represents a serious escalation.According to the press release, the California Department of Insurance has issued “Accusations” and “Notices of Orders to Show Cause” against Tesla Insurance Services, Inc., Tesla Insurance Company, and their partner, State National Insurance Company. The Department alleges that these companies have repeatedly failed to comply with California’s claims handling laws, leading to significant harm for policyholders – most of whom are Tesla drivers.The Department of Insurance laid out some of the core allegations:</div>

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California is taking enforcement action against Tesla Insurance for allegedly mishandling claims and harming customers. The California Department of Insurance threatens to revoke Tesla's operating license and impose fines. This action marks a serious escalation, as the department has issued accusations and notices against Tesla Insurance Services, Inc., Tesla Insurance Company, and State National Insurance Company for failing to comply with claims handling laws, significantly harming policyholders, primarily Tesla drivers.

- California is taking enforcement action against Tesla Insurance for allegedly mishandling claims and harming customers.  
- The California Department of Insurance has threatened to revoke Tesla's operating license and impose fines due to repeated non-compliance with claims handling laws.  
- This action marks a serious escalation for Tesla Insurance, which has faced scrutiny in the past, particularly affecting its policyholders who are primarily Tesla drivers.  

Tesla is in hot water for mishandling insurance claims