California's Insurance Department Is Not Happy With Tesla
Tesla Insurance is facing a load of legal issues in California. The state’s Department of Insurance alleges that the company has failed to comply with claims handling laws, causing harm to policyholders.
The Department of Insurance said Tesla insurance failed to respond to numerous warnings and meetings. It also accused the insurance company of having “egregious delays” in claims responses, causing significant expense and hardship for policyholders. Tesla Insurance also reportedly issued unreasonable claims denials and delayed paying valid claims, and the state department said Tesla did not alert customers to their right to have it review claims denials.
Tesla Insurance has 15 days to respond to the Department of Insurance’s claims, but if it’s found at fault, it could face fines of up to $5,000 for each violation or up to $10,000 for acts determined to be willful. The Department has also threatened to pull Tesla’s license to issue insurance in the state.
The Tesla insurance program tracks drivers’ behaviors and changes rates based on how they drive. The Tesla app generates a safety score based on the real-time driving data, which is then used to set rates, though California does not allow the safety score system to be used in rate setting practices.
[Images: Tesla]
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Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
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"The Tesla insurance program tracks drivers’ behaviors and changes rates based on how they drive."
Friends insured by State Farm in CA are jealous that I have 'Drive Safe & Save' but they can't get it. CA's regulations outlawing telematics to calculate individuals' rates forces skilled drivers to subsidize unskilled drivers. It reeks of 'From each according to his abilities, to each according to his needs.'
The opposite. Smooth braking contributes to the discount. Binary, on-off braking and accelerating will eliminate the discount. And it really dings you on when you talk on a cell w/o speakerphone while moving.
I had to bed in a new set of ceramic pads and rotors so at 7am on a Sunday I took my car out to a nearby deserted Interstate service road and did the usual 20mph- jam on the brakes/40-mph jam on the brakes/60mph jam on the brakes. The SF app really noticed but that one-off trip didn't lower my discount.