Overview
- Lemonade’s new pay-per-mile “Autonomous Car” policy cuts the per-mile rate by about 50% for miles driven with Tesla’s Full Self-Driving engaged, launching in Arizona on Jan. 26 and Oregon in February.
- Through a technical collaboration, Tesla is providing vehicle telemetry that lets Lemonade identify FSD-engaged miles and factor details such as software version and sensor precision into pricing.
- Co-founder Shai Wininger says Lemonade’s data shows fewer accidents when FSD is used and the insurer plans additional price reductions as software updates improve safety.
- FSD remains an SAE Level 2 system that requires driver supervision, and U.S. regulators including NHTSA continue to investigate crashes and alleged traffic violations linked to the technology.
- The discount substantially exceeds Tesla Insurance’s FSD-related savings of up to about 10%, and the announcement drove a sharp rise in Lemonade’s shares this week.