Lemonade has officially launched its new insurance program for Tesla vehicles in Oregon, offering substantial discounts to drivers who utilize the company’s Full Self-Driving (FSD) system. The innovative program aims to leverage Tesla’s safety data to provide more affordable insurance rates for autonomous driving miles.
Lemonade Introduces FSD-Based Insurance Program
The initiative was announced by Lemonade co-founder Shai Wininger on the social media platform X. Wininger confirmed that Lemonade’s Autonomous Car insurance product, specifically tailored for Tesla vehicles, is now operational in Oregon. Under this program, eligible Tesla owners can receive approximately a 50% discount on insurance costs for miles driven using Tesla’s FSD system.
“And… we’re ON. @Lemonade_Inc’s Autonomous Car for @Tesla FSD is now live in Oregon. Tesla drivers in Oregon can now get ~50% off their Tesla FSD-driven miles + the best car insurance experience in the US, bar none,” Wininger stated in his post.
Lemonade’s official website explains that the program’s pricing is based on Tesla’s safety data, which suggests that miles driven with FSD are about twice as safe as those driven manually. Consequently, Lemonade is offering reduced rates for these autonomous miles. The insurer also noted that as FSD technology continues to advance, the associated discounts could potentially increase over time.
Mechanism for Tracking FSD Usage
Lemonade’s FSD discount system operates through a direct integration with Tesla vehicles, which requires explicit driver permission. Once authorized, the system is capable of differentiating between manually driven miles and those completed using FSD, automatically applying the applicable discount to qualifying miles.
There is no minimum usage requirement for FSD. Drivers who use the system only occasionally will still benefit from discounted rates for those specific miles, while non-FSD miles will be charged at competitive standard rates. Lemonade has also emphasized that the quality of coverage and claims handling will remain consistent, irrespective of whether the vehicle was under manual control or operating in FSD mode at the time of an incident.
Currently, this program is accessible only to Teslas equipped with Hardware 4 or newer, running firmware version 2025.44.25.5 or later. Additionally, Lemonade offers policyholders the option to bundle their Tesla insurance with other policies, such as renters, homeowners, pet, or life insurance, to achieve further savings.