Insurance Premiums Halved as Insurers Officially Enter Tesla FSD

Tesla owners in North America are getting some great news. Digital insurance company Lemonade recently announced it will offer up to 50% premium discounts for owners who activate and use Tesla's FSD (Supervised) feature. This is not only a major breakthrough in actuarial modeling, but also marks official financial recognition of the safety value of autonomous driving.

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Image via @ Lemonade, copyright belongs to the original author

The company's new "Lemonade Autonomous Car" insurance policy states that for miles driven while Full Self-Driving (Supervised) is engaged, Tesla owners will be charged a per-mile insurance rate that is approximately 50% lower than the rate for manually driven miles. It's important to note that this does not mean the total premium on the entire policy is automatically cut in half. Lemonade's product consists of a fixed base premium plus a per-mile component: manually driven miles are charged at the standard rate, while FSD miles are charged at half the rate of manually driven miles. So the total savings for each owner will depend on the base premium, total miles driven, and the proportion of FSD usage within the total mileage.

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Image via @ Lemonade, copyright belongs to the original author

With the owner's authorization, Lemonade reads vehicle data directly through the Tesla Fleet API, automatically distinguishing between FSD-driven and manually driven miles — no self-reporting or additional devices required. According to the conditions published by Lemonade, vehicles typically need to be equipped with Hardware 4 or newer, and running software version 2025.44.25.5 or later.

🔹 Lemonade FSD Insurance Program Nationwide Rollout