An Australian auto insurance company is changing how it calculates insurance premiums for Tesla owners. Zurich Australian Insurance Limited has become the country’s first insurer to recognize Full Self-Driving (FSD) as a factor that can lower the cost of coverage through its InsureMyTesla product.
Zurich says the change is based on local and international Tesla data showing vehicles using FSD are involved in roughly seven times fewer major or minor collisions than regular electric vehicles.
Eligible Tesla owners with FSD will now be able to receive more affordable premiums reflecting that lower claimed collision risk. Zurich has not disclosed exactly how large the savings will be.
While this is an Australian first, Zurich isn’t the first insurer globally to take FSD into account. In January, U.S. insurer Lemonade launched its Autonomous Car insurance, which cuts the per-mile insurance rate by 50% for miles driven using FSD. With the owner’s permission, Lemonade connects directly to the vehicle through Tesla’s Fleet API to distinguish between FSD and manually driven miles.
Zurich is taking a slightly different approach, using FSD as a rating factor rather than applying a specific discount based on each mile driven with the system.
“This is a really exciting milestone – both for Tesla owners who are rapidly adopting this FSD (Supervised) technology, and for Zurich as the first insurer in Australia to actively lean into this space. The data shows that drivers using this technology are involved in far fewer accidents, so it’s important they can access insurance that reflects this lower risk,” said Zurich Product Manager David Toma.
The change comes less than a year after Tesla launched FSD in Australia and New Zealand in October 2025. Owners logged one million kilometres on FSD within the first two weeks, while Australian Teslas have now accumulated more than 132 million kilometres using the system.
“We’re pleased to see the insurance industry recognising the safety and value of FSD (Supervised). The data is clear – FSD (Supervised) is making driving significantly safer, and it’s encouraging to see InsureMyTesla by Zurich pioneering this benefit and reflecting the reduced risk for Tesla owners,” said Tesla Australia and New Zealand Country Director Thom Drew.
While Canada has had FSD since 2022, no insurance companies have implemented a similar discount for Canadian Tesla owners who have a FSD license or subscription.
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