Lemonade Launches Tesla FSD-Specific Auto Insurance in Indiana

U.S. insurer Lemonade recently launched in Indiana a car insurance product specifically designed for Tesla owners using the Full Self-Driving (Supervised) feature, offering a 50% discount on premiums for miles driven with FSD engaged. This marks the company’s first insurance offering tailored to autonomous vehicles and is expected to expand to additional states in the future. Premiums are calculated on a per-mile basis, with rates halved when FSD is active—meaning the more drivers use FSD, the lower their total premium becomes. As FSD software continues to improve and safety performance increases, rates could decrease further. The discount currently applies only to Tesla vehicles equipped with Hardware 4.0 (HW4.0). Lemonade accesses vehicle data via Tesla’s Fleet API (with owner authorization) to automatically distinguish between FSD-driven and human-driven miles, enabling precise pricing. Data from the vehicle’s onboard computer also feeds into actuarial models that dynamically assess risk by factoring in variables such as FSD software version and sensor accuracy, creating a “safer driving = lower cost” pricing mechanism. Shai Wininger, Lemonade’s co-founder and president, stated that traditional insurers treat Teslas and AI-driven vehicles the same as conventional cars operated by human drivers—but autonomous systems, which offer 360-degree perception, never get fatigued, and react faster, should not be lumped together with human driving. Lemonade first rolled out this program in Arizona in January 2024. At the time, Tesla CEO Elon Musk responded on social platform X, affirming that FSD significantly enhances driving safety and expressing his support for the initiative. Tesla’s official website now features a dedicated FSD insurance information page, clearly stating that eligible customers using FSD (Supervised) can receive premium discounts—with greater usage yielding larger savings.