Overview
- Lemonade will begin selling the new product in Arizona on January 26 and expand to Oregon in February.
- Lemonade says a technical collaboration with Tesla provides onboard data that lets its models identify FSD‑engaged miles for lower pricing.
- The insurer cites reduced crash risk during FSD use and says rates could fall further as Tesla updates the software to improve safety.
- Tesla’s own insurance offers a smaller discount of up to about 10% for drivers who use FSD for a majority of their miles.
- FSD remains a Level 2 system requiring driver supervision and is under federal scrutiny, while Tesla’s insurance operations recently drew a California enforcement action that the company denied.