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| Tesla FSD in the driver's seat. |
A new insurance product is putting real money behind Tesla’s often-debated safety claims for its Full Self-Driving (FSD) technology. Based on the carmaker's own safety data, one insurer is now offering Tesla drivers a staggering 50% discount on premiums for every mile they drive with FSD engaged.
The move by AI-driven insurance company Lemonade marks a significant vote of confidence in the safety performance of advanced driver-assistance systems and could foreshadow a fundamental shift in how autonomous vehicles are insured.
The Data Driving the Decision
The cornerstone of Lemonade's new "Autonomous Car Insurance" is Tesla's recently published Full Self-Driving (Supervised) Vehicle Safety Report. According to Tesla's data, when FSD is active, the rate of both major and minor collisions plummets.
Tesla claims that driving with FSD results in seven times fewer collisions than the U.S. average for all vehicles, which includes both ICE and electric cars. The specific statistics are striking:
- With FSD Engaged: One crash for every 5 million miles driven.
- U.S. National Average: One crash for every 699,000 miles driven.
Perhaps more tellingly, Tesla's internal data shows FSD is also significantly safer than driving the same car with the basic Autopilot system or with no driver-assist features active at all.
While the National Highway Traffic Safety Administration (NHTSA) continues to investigate certain incidents involving Tesla's systems and some experts question the methodology of such internal reports, the data was compelling enough for Lemonade to build a first-of-its-kind product around it.
"A First-of-Its-Kind Product for Self-Driving Cars"
Lemonade credits its ability to parse this data and act on it to its tech-focused model. “Our 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,” the company stated.
The insurer announced the groundbreaking policy in a recent news release, detailing the collaboration with Tesla that provided access to the latest safety metrics. You can read Lemonade's full announcement here.
"Our AI-assisted data crunching shows that when Tesla FSD is in the driver's seat, the accident rate is significantly lower than when a human is driving solo," Lemonade explained. "So much so, that we've halved our average premium for any mile driven on FSD."
What This Means for Tesla Drivers and the Future
While Tesla has been incorporating FSD safety metrics into its own branded insurance offerings, the Lemonade product is the first from a third-party insurer to offer such a substantial, targeted discount. It transforms Tesla's safety statistics from a marketing point into a direct financial benefit for drivers.
The rollout begins January 26, first in Arizona, followed by Oregon. Tesla owners can get a quote for their new FSD-dependent premium within seconds via Lemonade's app or website.
Looking ahead, a major question is whether this model will extend to Tesla's planned fully autonomous vehicles. When Tesla's driverless Cybercab—with no pedals or steering wheel—joins the Robotaxi fleet expected later in 2026, will it be insured under a similar product? For now, that remains to be seen.
This partnership underscores a growing trend where real-time vehicle data directly dictates insurance costs, rewarding the use of advanced safety systems. As one expert put it, "The algorithm has spoken, and it says FSD is a safer driver."
For more details on Tesla's safety statistics, you can view their official FSD safety report here.
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| FSD collision stats against the U.S. average. |