By Ed Ludlow, Bloomberg
Insurance provider Lemonade Inc. is rolling out automotive policies for users of Tesla Inc.’s driver-assistance system, seeking to capitalize on interest in the technology.
The new plans will cut per-mile rates by about 50% when customers have Tesla’s Full Self-Driving system engaged, Lemonade said Wednesday in a statement. The decade-old insurance firm, which uses artificial intelligence to price policies and process claims, will begin offering the option to Tesla drivers in Arizona this month before expanding to Oregon in February.
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When FSD is engaged, Tesla’s vehicles attempt to navigate to destinations entered by drivers. However, constant supervision is required, and an in-cabin camera monitors drivers to ensure they pay attention to the road. Tesla acknowledges that FSD does not make its vehicles autonomous.
Lemonade is nevertheless marketing its product as “autonomous car insurance.” The startup said Tesla gave it access to previously unavailable vehicle data as part of a technical collaboration. Tesla didn’t respond to a request for more information.
Tesla has its own insurance offering in a dozen states that uses a monthly safety score to calculate premiums based on real-time driving data. The safety score can also be improved for users who use FSD in Arizona, Florida and Texas, according to Tesla’s website. In California, Tesla Insurance does not use a safety score to calculate rates.
–With assistance from Kara Carlson.
More stories like this are available on bloomberg.com
©2026 Bloomberg L.P.
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