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

A: Hey John! What's up?

B: Oh, hiya Akira! Not much here, how about you?

A: Well, I just heard some interesting news about Tesla... did you know they're facing trouble with their insurance arm in California?

B: Nope, that sounds new to me. Tell me more!

A: So it seems Tesla's been denying or delaying customer claims for years despite warnings from the state regulator. They've been accused of egregious delays and unreasonable denials, causing financial harm and distress to policyholders.

B: Wow, that doesn't sound good at all! What happens now?

A: Tesla could face penalties up to $10,000 for each willful act, and they have 15 days to respond. This might also lead to legal issues as it has already caused potential third-party liability exposure.

B: That's quite a mess, huh? I wonder if Elon Musk knows about this.

A: Yeah, it started back in 2022, and things have only gotten worse since then. Despite promising to improve, Tesla didn't seem to learn their lesson.

B: That really sucks for the customers who trusted them... I hope they can sort it out soon.

A: Me too, John. Let's hope they take this seriously and make things right for the affected policyholders.
Summary
Tesla faces insurance trouble in California, denying or delaying customer claims for years, causing financial harm. Accused of egregious delays and unreasonable denials, they may face penalties up to $10,000 per willful act and legal issues due to potential third-party liability exposure. The
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ID: dd3f8caf-2ec8-493b-9f3b-b990970eb56e

Category ID: conversation_summary

URL: https://techcrunch.com/2025/10/04/teslas-insurance-arm-accused-of-egregious-delays-and-systemic-failures-by-ca-regulator/#conversation

Date: Oct. 5, 2025

Notes: 2025-10-05

Created: 2025/10/05 00:20

Updated: 2025/12/08 01:17

Last Read: 2025/10/05 08:50