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Lemonade Offers Cheaper Rates for Tesla's FSD
21 Jan
Summary
- Lemonade now offers auto insurance for Tesla's driver-assistance system.
- Rates are cut by approximately 50% when Full Self-Driving is engaged.
- Policies will launch in Arizona and then expand to Oregon.
Lemonade Inc., an insurance provider, is launching specialized auto insurance policies for users of Tesla Inc.'s Full Self-Driving (FSD) system. The new plans aim to attract Tesla owners by offering significantly lower per-mile rates, approximately a 50% reduction, when the FSD system is engaged. This initiative reflects Lemonade's assessment of reduced risk associated with the technology.
The insurance policies are set to begin rolling out in Arizona this month, with a subsequent expansion to Oregon scheduled for February. Lemonade leverages artificial intelligence for pricing and claims, and has reportedly gained access to previously unavailable vehicle data from Tesla through a technical collaboration.
This move by Lemonade comes as Tesla itself offers an insurance product in various states that utilizes a monthly safety score derived from driving data. However, FSD is currently under investigation by the US National Highway Traffic Safety Administration due to incidents involving traffic law violations, despite Tesla's marketing of the system.
