Cheaper Car Insurance for Self-Driving Teslas

Zurich Insurance has begun offering reduced insurance premiums to Australian owners of Teslas equipped with Full Self-Driving (FSD) Supervised mode. This decision follows an analysis by the insurer's underwriters, which indicated a lower accident frequency for vehicles utilizing this advanced driver assistance technology. The FSD Supervised system, available for about a year in Australia on certain Tesla models, requires continuous human oversight and is classified as a Level 2 system.

The technology utilizes eight cameras and a neural network to manage steering, acceleration, braking, and lane changes. An internal camera monitors drivers to ensure they remain attentive and ready to intervene. Tesla's data shows Australians have driven over 132 million kilometers using FSD since its launch.

Despite occasional navigation challenges, such as with roundabouts or recent lane changes, real-world testing in Sydney demonstrated smooth handling. This initiative marks a significant step, as it's believed to be only the second insurer globally to incorporate FSD usage into risk assessment for premium adjustments. Zurich noted that while technology reduces driver errors, it doesn't mitigate all types of vehicle damage or theft.

Alex Morgan, Zurich's head of general insurance, stated that human drivers make mistakes due to fatigue or distraction, and while machines aren't perfect, they appear to make fewer errors on average. Thom Drew, Tesla's Australia director, welcomed the recognition of automated driving's safety benefits by insurers.