Lemonade launches Autonomous Car Insurance

Lemonade announced the launch of Autonomous Car insurance, “a first-of-its-kind product” designed for self-driving cars, starting with Tesla FSD.

The new offering cuts per-mile rates for FSD-engaged driving by ~50%. Lemonade expects further reductions as Tesla releases FSD software updates.

Lemonade says that the launch is the result of a technical collaboration with Tesla, which gives the company access to vehicle data that was previously unavailable.

The product will begin rolling out in Arizona on January 26 and in Oregon a month later. Lemonade currently offers its existing car insurance in Arizona, California, Colorado, Illinois, Indiana, Ohio, Oregon, Tennessee, Texas, and Washington.

“Traditional insurers treat a Tesla like any other car, and AI like any other driver. But a car that sees 360 degrees, never gets drowsy, and reacts in milliseconds can’t be compared to a human. Our existing pay-per-mile product has given us something no traditional insurer has: a unique tech stack designed to collect massive amounts of real driving data for precise, dynamic pricing. Lemonade Autonomous Car was built on that foundation. Teslas driven with FSD are involved in far fewer accidents. By connecting to the Tesla onboard computer, our models are able to ingest incredibly nuanced sensor data that lets us price our insurance with higher precision than ever before.” – Shai Wininger, co-founder and president at Lemonade.