Tesla’s insurance arm accused of ‘egregious delays’ and ‘systemic failures’ by CA regulator

The California Department of Insurance has accused Tesla's insurance arm of "egregious delays" and "systemic failures" in handling consumer claims. The regulator has been warning Tesla to fix its claims process since 2022, but consumer complaints have continued to rise. According to the report, Tesla's insurance unit has been accused of delaying payouts, mishandling claims, and providing inadequate customer service. The department claims that these issues have resulted in significant financial and emotional distress for Tesla customers. The report further states that Tesla's insurance practices have violated several state insurance regulations, and the department has demanded that the company address these issues immediately. Tesla has not yet responded publicly to the allegations. This development raises concerns about the quality of Tesla's customer service and the overall reliability of its insurance offerings. As the company continues to expand its product portfolio, it will be crucial for Tesla to address these issues and ensure that its customers receive the level of service they expect.