Insurance provider in Oregon offers 50% discount on Tesla FSD-driven miles

Insurance provider Lemonade, Inc. (NYSE: LMND) is luring Tesla (NASDAQ: TSLA) customers to sign up for its insurance services by offering a unique discount.

For Tesla owners using Full Self-Driving (FSD) on their cars, Lemonade is offering a 50% discount on insurance premiums. “Driving is changing. Insurance should too,” says their dedicated web page for Tesla FSD users.

Currently, the offer is only available in the state of Oregon (OR). Lemonade is giving a 50% discount on every mile driven on FSD. Their official website states:

Tesla Full Self-Driving is twice as safe, so Lemonade takes 50% off every mile driven with FSD. That means lower premiums for you and safer roads for everyone.

This is the first time a third-party insurance provider included driving behavior as a premium calculation factor. Tesla’s own insurance service factors in both human and FSD driving to calculate premiums.

However, Tesla Insurance offers only a 10% discount for safe driving behavior and the use of FSD. With each new update, Tesla’s Full Self-Driving AI technology is getting better at navigating city streets and highways.

Lemonade, on the other hand, is giving an exceptional discount of up to 50%. Tesla owners can avail this offer by using their cars on FSD for the most part. The insurance provider believes Tesla’s self-driving tech is twice as safe as that of a human driver.

The New York-based insurance provider also shared the following graph of its insurance price vs other providers in the context of Tesla FSD’s improvement over time. Lemonade predicts that its insurance price will go further down as Tesla makes improvements to FSD driving.

Above: Graph of Lemonade vs other insurance providers’ price relative to the safety improvements in Tesla FSD. Source: Lemonade, Inc. FSD website.

Starting from FSD v14.2 (2025.38.9.5) software update, Tesla added a new Self-Driving Stats feature to its cars.

The automaker made it easy for drivers and owners to know how many miles they have driven on FSD out of the total miles driven. This feature allows third-party providers to easily see individual car data.

If a customer is driving their Tesla on FSD most of the time, the cost of their car insurance is going to be significantly lower. According to Lemonade’s website, the company only charges for miles driven, and FSD miles are priced at 50%.

Tesla Insurance also calculates miles each month. Based on the number of total miles driven on FSD, Tesla calculates the next month’s payment. Tesla Insurance is currently only available in Florida, Texas, and Arizona.

Lemonade’s FSD-based insurance pricing is currently only available in Oregon. However, the company plans to expand it to other cities soon.

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Featured image: Zack (@BLKMDL3 via X).

Note: This article was published earlier on Tesla Oracle. Author: Iqtidar Ali.