Tesla sells car insurance to its own customers, and it has done so long enough now for state regulators’ complaint data to tell a clear story. In both Texas and California, the insurers behind Tesla’s policies had the worst complaint records of any sizable auto insurer in 2025. This review lays out that record, who actually stands behind a Tesla policy, and the questions to ask before you buy one.
This review is for educational purposes only and is not personalized insurance advice. We are not licensed insurance agents. Availability, coverage and pricing vary by state and change over time; your policy documents control.
The Verdict
Tesla Insurance has the weakest regulator complaint record of any sizable auto insurer we have analyzed.
- Texas: Tesla Property & Casualty’s 2025 complaint index was 36.24 (1.00 is average): 241 confirmed complaints on 40,364 policies. It held 0.27% of Texas auto policies and drew 9.7% of all confirmed auto complaints.
- California: Tesla Insurance Company had 372 justified complaints closed in 2025, a ratio of 142.2 per 100,000 exposures, 49th of the 50 largest auto insurers. State National Insurance Company, which California’s regulator says uses Tesla Insurance Services as an appointed agent, was 50th at 317.9.
- Enforcement: California’s Department of Insurance brought enforcement actions against Tesla’s insurance companies and State National on October 3, 2025, over claims handling.
This review focuses on that regulator record. Tesla’s own site lists the states where it sells insurance, how it prices policies and which coverages it offers; those details change, so confirm them there.
Who Is Behind a Tesla Insurance Policy
Tesla’s insurance is a group of companies, and which one appears on your policy depends on where you live.
- Tesla Insurance Company. A California examination report says Tesla Insurance Holdings, LLC, a wholly owned Tesla subsidiary, acquired control of Balboa Insurance Company on January 21, 2022, and renamed it Tesla Insurance Company in the first quarter of 2022. Balboa had been in business since 1948.
- Tesla Property & Casualty, Inc. and Tesla General Insurance, Inc. came with that acquisition; the report says they were formerly Meritplan Insurance Company and Newport Insurance Company. Both appear in Tesla’s list of subsidiaries in its 2025 Form 10-K.
- Tesla Insurance Services, Inc. (TIS). The same examination report says that from April 18, 2022, TIS acted as Tesla Insurance Company’s managing general agent, with authority over “productions, underwriting, accounting, and claims handling.”
- State National Insurance Company. Not a Tesla company. California’s Department of Insurance says Tesla Insurance Services “is an appointed agent for State National, an admitted insurer in California.”
- Redpoint County Mutual (Texas). The Texas Department of Insurance’s rate-filing product names page lists Tesla among agencies that file auto rates through Redpoint County Mutual Insurance Company. That means some Tesla-sold Texas policies may sit under Redpoint, whose own 2025 index was 1.55, rather than under Tesla Property & Casualty.
The practical point: the company printed on your declarations page is the one whose complaint record applies to you.
The Complaint Record
Tesla-linked insurers, 2024 vs 2025
Texas
In the Texas Department of Insurance’s 2025 auto data, Tesla Property & Casualty drew 241 confirmed complaints on 40,364 policies, up from 65 on 42,589 in 2024. Its complaint index rose from 14.28 to 36.24. No other auto insurer with at least 10,000 Texas policies was above 10.3.
Tesla against the market
For the full ranking of 67 Texas auto insurers, see our Texas car insurance complaint index.
California
The California Department of Insurance’s 2026 study, which counts complaints closed in 2025, ranks:
| Company | Approx. exposures | Justified complaints 2023 / 2024 / 2025 | Ratio per 100,000, 2025 | Rank of 50 |
|---|---|---|---|---|
| Tesla Insurance Company | 261,688 | 0 / 2 / 372 | 142.2 | 49 |
| State National Insurance Company, Inc. | 180,554 | 90 / 279 / 574 | 317.9 | 50 |
| Median of the 50 largest | — | — | 3.15 | — |
Together, those two companies drew 946 of the 1,786 justified complaints closed against California’s 50 largest auto insurers in 2025, or 53%, while holding about 1.5% of the study’s exposures. Our California car insurance complaint ratios page has the full table.
California’s Enforcement Action
On October 3, 2025, the California Department of Insurance announced enforcement actions against Tesla Insurance Services, Inc., Tesla Insurance Company and State National Insurance Company over the handling of “hundreds of California automobile policyholder claims.” The Department alleged:
- Unreasonable denials and delays in fully paying valid claims
- Failure to conduct thorough, fair and objective investigations
- Failure to advise policyholders of their right to have claim denials reviewed by the Department
The release said the Tesla companies had “more complaints, more justified complaints” in 2025 than in the three previous years combined, after repeated warnings beginning in 2022. It set out potential penalties of up to $5,000 per unlawful act, or $10,000 per willful act, and said the companies could face a hearing that could affect their licenses. These were allegations. The companies had 15 days to respond, and we found no published resolution as of October 28, 2026.
What to Ask Before You Buy
If a Tesla Insurance quote is cheaper than the alternatives, that is worth knowing. Ask these questions before you switch, and get the answers in writing:
- Which insurance company issues my policy? Look it up in our Texas or California tables, or in the NAIC’s Consumer Insurance Search.
- How are claims handled, and by whom? In California, the examination report places claims handling with Tesla Insurance Services.
- What repair options do I have? Ask how repair shops are chosen and how long parts approvals usually take.
- How is my premium set, and what can change it at renewal?
- What happens if I dispute a claim? In California, the Department says policyholders must be told they can ask it to review a denial.
Then compare the quote with insurers that have stronger records. Our best car insurance ranking scores six national carriers on price, claims satisfaction, coverage and digital tools, and our guide to electric car insurance costs covers what drives EV premiums. For how to read any insurer’s complaint numbers, see insurance complaint indexes explained.
FAQ
Is Tesla Insurance good?
On regulator complaint data, it is the weakest of any sizable auto insurer we analyzed. Texas’s 2025 data gives Tesla Property & Casualty a complaint index of 36.24, where 1.00 is average, and California’s 2026 study ranks Tesla Insurance Company 49th of its 50 largest auto insurers. Price and convenience may still appeal to some owners, but anyone considering it should weigh that record.
Who underwrites Tesla Insurance?
It depends on the state. California’s Department of Insurance says Tesla Insurance Services, Inc. is an appointed agent for State National Insurance Company, and its October 2025 action also names Tesla Insurance Company. In Texas, Tesla Property & Casualty, Inc. reports its own policies, and the Texas Department of Insurance lists Tesla among agencies that file auto rates through Redpoint County Mutual. Your policy documents name the insurer.
What did California accuse Tesla Insurance of?
On October 3, 2025, the California Department of Insurance brought enforcement actions against Tesla Insurance Services, Tesla Insurance Company and State National, alleging unreasonable denials and delays in paying valid claims, investigations that were not thorough, fair and objective, and failure to tell policyholders they could have denials reviewed by the Department. These are allegations; we found no published resolution as of October 28, 2026.
Does Tesla own an insurance company?
Yes. A California examination report says Tesla Insurance Holdings, LLC, a wholly owned Tesla subsidiary, acquired Balboa Insurance Company on January 21, 2022, along with subsidiaries now named Tesla Property & Casualty, Inc. and Tesla General Insurance, Inc. Balboa was renamed Tesla Insurance Company in early 2022.