Tesla is rolling out a significant update to its in-house insurance program that could lower premiums for some drivers. The changes, rolled out in Safety Score version 3.0, introduces a new way of calculating risk—one that heavily rewards those who regularly use Full Self-Driving (FSD).
Under previous versions, all driving contributed equally to a driver’s Safety Score, regardless of whether it was manual or assisted. With version 3.0, Tesla now separates the two—manual driving is still evaluated using traditional safety metrics, while miles driven with FSD (Supervised) are automatically assigned a perfect score of 100.
This blended approach results in a weighted average, meaning the more a driver uses FSD, the more their overall Safety Score trends toward 100. That score is then used to determine insurance pricing, meaning frequent use of the system could reduce costs over time.
Tesla says the updated model is based on more than 26.5 billion miles of real-world driving data, allowing for a more precise estimate of collision risk. The company has also refined how late-night driving is measured, which now reflects updated risk patterns depending on the hour.
The other core Safety Score factors remain largely unchanged. These include hard braking, aggressive turning, unsafe following distance, excessive speeding, forced Autopilot or FSD disengagements, and seatbelt usage. However, with the update to version 3.0 is that these factors are now only applied to miles driven without driver assistance features engaged.
Tesla’s revised system also continues to rely on its Predicted Collision Frequency (PCF) model, which estimates the likelihood of a crash based on driver behaviour. That figure is then converted into a 0–100 Safety Score, with higher scores indicating lower risk.
According to an announcement by the Tesla North America account on X, the update only applies to new Tesla Insurance policies in several U.S. states, including Indiana, Tennessee, Texas, Arizona, Virginia, and Illinois.
Tesla Insurance update
— Tesla North America (@tesla_na) April 14, 2026
With the latest version of Safety Score (v3.0), every mile you drive with FSD Supervised enabled will receive a score of 100.
This allows you to maintain a higher average safety score over time, resulting in lower monthly insurance premiums.
Applies to…
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