While auto insurance leaders reported premium growth percentages in the single digits last year, with sprinters like Progressive and Root up in the low-to-mid teens, premiums at Tesla’s insurance operations skyrocketed 40.7%, according to a new analysis.
S&P Global Market Intelligence reported total direct premiums across Tesla’s insurance business topped $1 billion last year, coming in at nearly $1.4 billion, compared to $970.8 million in 2024.
But while Tesla’s premiums soared—particularly in California, where a whopping 585% jump brought the state’s premiums to $725 million, compared to just over $100 million in 2024—loss ratios for one of the Tesla insurers, Tesla Insurance Co., continued to look worse than an industrywide combined ratio in 2025.
According to a chart included in the S&P GMI report, the direct loss ratios for Tesla Insurance Co. exceeded 115 in both 2025 and 2024.
There are three Tesla carriers for which key metrics are captured in the report: Tesla Insurance Co., Tesla General Insurance Inc. and Tesla Property & Casualty Inc. Among them, Tesla Insurance Co. is currently the principal writer of California business, S&P GMI confirmed, supplying information that shows 100% of Tesla’s California premiums in that company.
In addition, Tesla Insurance Co. is also one of two Tesla insurance entities in the state of California flagged for improper claims handling by the California Department of Insurance last year. Announcing actions against the companies, CDI threatened to enforce monetary penalties and to suspend the certificate of authority of insurer Tesla Insurance Co. to transact insurance business in California, and to revoke the license of broker Tesla Insurance Services. Tesla Insurance Services has acted as a general agent for Tesla Insurance Co. in California, and for a non-affiliated insurer, State National, a member of Markel Group.
S&P GMI highlights a change in the relationship between State National and Tesla as the driver of the surge in premiums across the Tesla insurance subsidiaries.
According to S&P GMI, State National Insurance Co.’s share of Tesla’s insurance business shrank to 24% in 2025 from 85% in 2022, following Tesla’s 2023 offer of a one-time 5% discount for customers to switch carriers.
