Lemonade, an AI-powered digital insurance company, has launched Lemonade Autonomous Car insurance, a product designed specifically for self-driving cars, starting with Tesla FSD.
The new offering, described as first-of-its-kind, cuts per-mile rates for FSD-engaged driving by approximately 50%, a reduction that indicates significantly lower risk during autonomous operation.
Lemonade anticipates further rate decreases as Tesla rolls out FSD software updates, which are expected to enhance vehicle safety over time.
This launch is the result of a technical partnership with Tesla, which has provided Lemonade with access to previously unobtainable vehicle data.
This captured data then informs Lemonade’s usage-based risk prediction models, allowing them to uniquely differentiate between human and autonomous driving and predict risk based on factors such as the car’s autonomous software version and the precision of its sensors.
“Traditional insurers treat a Tesla like any other car, and AI like any other driver,” said Shai Wininger, co-founder and president at Lemonade. “But a car that sees 360 degrees, never gets drowsy, and reacts in milliseconds can’t be compared to a human.”
“Our existing pay-per-mile product has given us something no traditional insurer has: a unique tech stack designed to collect massive amounts of real driving data for precise, dynamic pricing. Lemonade Autonomous Car was built on that foundation,” Wininger said.
Lemonade’s policy covers intermittent FSD use and households with a mix of Teslas and other non-FSD vehicles from other manufacturers.
Customers can earn further discounts for safe driving and by bundling with Lemonade’s Homeowners, Renters, and Pet insurance, the firm noted.
This approach aligns with Lemonade’s strategy of using AI for efficiency and accurate pricing, passing savings to customers. Lemonade Autonomous Car insurance is a step toward its goal of becoming the world’s lowest-cost, best-experience insurer.
“Teslas driven with FSD are involved in far fewer accidents,” Wininger added. “By connecting to the Tesla onboard computer, our models are able to ingest incredibly nuanced sensor data that lets us price our insurance with higher precision than ever before.”
“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.
The product will begin rolling out in Arizona on January 26 and in Oregon a month later.
