Insurance Company Halves Rates for Tesla FSD Mode Miles

The lower insurance offering is the result of Tesla granting the insurance company access to previously unavailable vehicle data.

A Tesla Model 3 vehicle drives using FSD (Full Self-Driving) in Encinitas, Calif., on Oct. 18, 2023. Mike Blake/Reuters

Digital insurance company Lemonade launched an insurance product targeting self-driving cars, slashing premium rates for miles driven with Tesla’s Full Self Driving (FSD) mode by roughly 50 percent, the company said in a statement on Jan. 21.

The FSD feature in Tesla “intelligently and accurately” completes driving maneuvers, including steering, route navigation, parking, and lane changes, according to the Tesla website.