Lemonade's new car insurance slashes Tesla FSD rates by half
Lemonade just dropped a fresh insurance plan for Teslas using Full Self-Driving (Supervised) mode, cutting per-mile costs by almost 50%.
Thanks to a technical collaboration with Tesla, Lemonade can now tap into vehicle telemetry data—previously unavailable to other insurers.
The policy is flexible, covering both FSD and regular driving in mixed-car households.
How it works & where it's rolling out
You get extra discounts for safe driving, and you can bundle this coverage with your renters, homeowners, or even pet insurance.
The rollout starts January 26 in Arizona and hits Oregon in February 2026.
Lemonade says rates could drop even more as Tesla's self-driving software gets smarter.
What makes it different?
Instead of one-size-fits-all pricing, Lemonade separates software-driven miles from human-driven ones.
Co-founder Shai Wininger puts it simply: "A car that sees 360 degrees, never gets drowsy, and reacts in milliseconds can't be compared to a human."