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Digital insurance company Lemonade is launching a product for users of Tesla\u2019s advanced driver assistance system, known as Full Self-Driving (Supervised), which the insurer promises will cut per-mile rates by \u201capproximately 50%.\u201d<\/p>\n
It\u2019s one of the first products geared toward pricing insurance based on how software systems handle driving, and a sign that companies may look to create new lines of business as partial autonomy and true self-driving start to proliferate.<\/p>\n
Lemonade said on Wednesday that it is leveraging \u201cvehicle telemetry data that was previously unavailable\u201d thanks to a \u201ctechnical collaboration with Tesla,\u201d though the insurance company declined to offer more specifics. Lemonade said it would train its own usage-based risk prediction models to determine when a driver is using Full Self-Driving or operating the vehicle themselves, and price accordingly.<\/p>\n
Lemonade is calling the new product \u201cAutonomous Car insurance.\u201d Tesla\u2019s software does not currently make cars completely autonomous, and drivers need to be ready to take over at any moment. But the product is clearly a bet that Tesla CEO Elon Musk will ultimately fulfill his long-delayed promise that his company will make that happen.<\/p>\n
\u201cTraditional insurers treat a Tesla like any other car, and AI like any other driver. But a driver who can see 360 degrees, never gets drowsy, and reacts in milliseconds isn\u2019t like any other driver,\u201d Shai Wininger, co-founder and president of Lemonade, said in a statement. \u201cOur existing pay-per-mile product has given us something no traditional insurer has: a unique tech stack designed to collect massive amounts of real driving data for precise, dynamic pricing.\u201d<\/p>\n
The new car insurance product will launch in Arizona on January 26, and in Oregon the following month. Lemonade claims that \u201cthe safer FSD software becomes, the more our prices will drop.\u201d The company\u2019s existing auto insurance offering is available for \u201cmost popular cars\u201d in Arizona, California, Colorado, Illinois, Indiana, Ohio, Oregon, Tennessee, Texas, and Washington.<\/p>\n
Tesla has offered its own car insurance to customers for years now, though in late 2025 the company was hit with an enforcement action by California\u2019s Department of Insurance (CDI). The automaker was accused, along with partner State National Insurance Company, of \u201cegregious delays in responding to policyholder claims,\u201d \u201cunreasonable denials,\u201d and engaging in \u201cunfair claims settlement practices.\u201d<\/p>\n
Techcrunch event<\/p>\n
\n\t\t\t\t\t\t\t\t\tSan Francisco<\/span> Tesla has denied the allegations.<\/p>\n<\/div>\n
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 13-15, 2026<\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n