Tesla insurance gets 50% cheaper when FSD is driving

According to Tesla's own Full Self-Driving (Supervised) Vehicle Safety Report, when its driver-assist FSD system is turned on, the collision rate, both major and minor, is several times lower than the U.S. average.

FSD is also much safer than driving a Tesla on basic Autopilot, or with no driver-assist system active at all, according to the same statistics. In fact, Tesla claims that FSD results in seven times fewer major or minor collisions, or five times fewer off-highway ones.

That is one major collision per every five million miles on FSD, against the U.S. average of one each 699,000 miles for all vehicles, ICE or electric. While some dispute the methodology of those claims and the NHTSA is investigating accidents where Tesla's driver-assist systems have been active, insurers are beginning to take notice.

According to Lemonade, a self-described AI-driven insurance provider, Tesla's FSD safety record has been behind the decision to launch its Autonomous Car insurance service, a "first-of-its-kind product designed specifically for self-driving cars."

According to Lemonade's AI-assisted data crunching, when Tesla FSD is in the driver's seat, the accident rate is much lower than when a human is driving. So much so, that Lemonade has halved its average insurance premium for any mile driven on FSD.

"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," explains Lemonade  and says that it has launched its Autonomous Car insurance product in collaboration with Tesla that gave it access to the latest unannounced FSD safety data.

Tesla has been trying to reflect the stellar FSD safety record in its own insurance products, but this is the first time a third-party insurer is lowering premiums 50% for FSD miles with an actual product that is specifically targeting autonomous vehicles. It remains to be seen if Tesla will use Lemonade insurerance for its driverless Cybercab with no pedals or steering wheel, too, when it joins its Robotaxi ride-share fleet later in 2026.

The Lemonade Autonomous Car insurance option will be available on January 26, first in Arizona and then in Oregon. Tesla drivers will be quoted their new FSD-dependent premiums in a few seconds via the app or online.

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