Tesla has gotten on the wrong side of California regulators for the insurance service it provides to customers.

The California Department of Insurance took enforcement action against the Texas-based electric-vehicle maker after it said it received thousands of complaints over Tesla's claims process.

The department said the automaker’s insurance entities “repeatedly failed in their legal obligations to adequately handle hundreds of California automobile policyholder claims.”

Tesla, founded in the Golden State, offers auto insurance to its customers there and in about a dozen other states, including for non-Tesla vehicles of Tesla owners. Billed on its website as "insurance you control," its premiums are based on how people drive the cars as monitored by in-vehicle telematics. Claims are made via Tesla’s application.

The insurance department alleges that Tesla insurance conducted noncompliant claims practices, “placing profits above people and flouting the law with impunity,” according to a press release.

“Unless these issues are resolved in favor of policyholders beforehand, the companies will be ordered to a hearing before an administrative law judge to determine whether they will be able to maintain their ability to transact insurance business in California as well as face significant monetary penalties.”

The department says it started receiving consumer complaints in 2022, including delays in responding to claims; “unreasonable” denials and delays in paying claims; failure to conduct “thorough, fair and objective” claim investigations; and failure to communicate to policy holders their rights to have the department review claim denials.

The department said it warned the Tesla insurance companies to make changes, but it says complaints only increased. Penalties for violations could amount to $5,000 to $10,000 each, according to the department.

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