Lemonade has announced a new insurance product in the United States designed specifically for vehicles equipped with advanced driver assistance and self-driving software, starting with Tesla’s Full Self-Driving (FSD) system.
The new offering, called Lemonade Autonomous Car Insurance, is a usage-based policy that dynamically adjusts pricing depending on whether a Tesla is being driven by a human or by FSD, similar to Tesla’s in-house Insurance product. However, Lemonade’s product will evaluate miles driven with FSD engaged and price the insurance premium at roughly half the cost of human-driven miles, reflecting what the company says is a significant reduction in real-world accident risk.
Shai Wininger, Lemonade’s co-founder and president, framed the launch as the result of months of direct collaboration with Tesla. Through this technical integration, Lemonade is able to connect directly to a customer’s vehicle and collect detailed telemetry data in real time, including whether FSD is active, the software and hardware versions installed, and the vehicle’s sensor configuration.
Wininger says Lemonade’s internal data shows that Tesla’s latest FSD software, version 14.2, is “at least 2x safer than human drivers,” which is why FSD-driven miles are priced at 50% of the human-driven rate.
“Traditional insurers treat a Tesla like any other car, and AI like any other driver,” said Wininger. “But a car that sees 360 degrees, never gets drowsy, and reacts in milliseconds can’t be compared to a human.”
He also emphasized that this is only the beginning.
“Beyond the product announcement today, we’re also announcing our commitment to the Tesla community – the safer FSD software becomes, the more our prices will drop,” Wininger said.
Lemonade’s new product features a three-tier risk model that separates vehicle usage into distinct categories: when Tesla’s FSD is driving, when a human driver is in control with safety features assisting, and when the vehicle is parked and protected by Sentry Mode. Each category is priced independently, allowing Lemonade to more precisely align insurance costs with actual risk exposure.
As FSD evolves toward fully unsupervised operation, Wininger said traditional factors like driver age and driving history could eventually become irrelevant for pricing when the AI is in control. In that future scenario, a new driver would pay the same low FSD rate as a seasoned one.
The rollout of Lemonade Autonomous Car Insurance begins in Arizona on January 26, with Oregon following in February. Tesla owners will be able to get quotes through the Lemonade app or online at tesla.lemonade.com/fsd.
