Legal challenges against Tesla Insurance

A class-action lawsuit against Tesla Insurance Services alleges inflated car insurance premiums based on “misleading” collision warnings, not actual driving behavior.

Judge Brad Seligman of Alameda County Superior Court allowed the case to proceed, focusing on Tesla’s “safety score” for setting premiums, factoring in collision warnings, braking, and turning behaviors.

Illinois resident Ricky Stephens initiated the lawsuit, set for an initial January 2024 hearing, seeking reimbursement and an injunction against false advertising.

The news comes after a similar case involving Tesla owner Shawn Schneider who is suing State National Insurance Company over raised premiums due to alleged false collision warnings.