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Lemonade to Halve Tesla Insurance Rates for Miles Driven with Software Assistant

On Jan 21, Lemonade announced Autonomous Car insurance for Tesla Full Self-Driving drivers, cutting per-mile rates by approximately 50%, launching in Arizona on January 26 and Oregon next month.
The insurer says a technical collaboration with Tesla gives Lemonade access to vehicle telemetry data to train usage-based risk-prediction models that detect Full Self-Driving miles and price accordingly.
Wininger said `Teslas driven with FSD are involved in far fewer accidents`, citing company data and expecting further rate cuts as FSD software updates improve safety.
With an existing pay-per-mile product, Lemonade positions itself ahead as insurers consider pricing tied to software performance, aiding rapid deployment in U.S. states where it operates.
FSD remains Level 2 and requires driver supervision; U.S. auto safety regulator probed crashes, CDI took enforcement action, and Tesla plans a $99 subscription from February 14th.

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