Insurance Company Starts Offering 50% Discount When FSD Drives; Integrates Tesla API

Lemonade, a U.S.-based insurer, has officially introduced an Autonomous Car insurance product that cuts rates by 50% for miles driven while Tesla’s FSD (Supervised) is engaged.

The decision serves as third-party validation of Tesla’s safety data. Tesla has long asserted that Autopilot and FSD (Supervised) help prevent accidents; this is the first time an external insurer has publicly endorsed those results.

Lemonade is the first major underwriter outside Tesla to review the actuarial data and agree to reduce prices based solely on FSD’s performance.

How pricing is determined

The policy follows a pay-per-mile model. Human-driven miles are billed at a standard rate based on the driver’s record and risk profile, similar to conventional auto insurance.

Miles driven on FSD are priced at 50% of the human-driven rate. This is enabled by Lemonade’s integration with Tesla’s Fleet API, which provides live telemetry so the insurer can determine, second by second, whether the vehicle is under human control or FSD—much like Tesla Insurance.

Cars don’t get drowsy

The discount is justified by data indicating that supervised FSD results in fewer crashes than human driving.

“A car that sees 360 degrees, never gets drowsy, and reacts in milliseconds can’t be compared to a human,”

said Shai Wininger, Lemonade co-founder and president. He added that as FSD (Supervised) improves, Lemonade plans to reduce prices even further for Tesla owners.

Availability

The rollout begins in Arizona on January 26 and in Oregon on February 26. Tesla owners can apply and obtain a quote via the Lemonade app or through the webpage for Tesla owners.

Lemonade expects to expand the program to other states in which it operates, including California, Colorado, Illinois, Indiana, Ohio, Tennessee, Texas, and Washington.

Starting a trend

This announcement is more than a straightforward discount. For years, critics have argued that if FSD truly improved safety, insurance pricing would reflect it.

By offering a reduction that undercuts even Tesla’s in-house insurance program and FSD bonuses (typically capped at 10–15%), Lemonade is providing market-based evidence that autonomous miles are statistically safer—and therefore cheaper to insure.