Lemonade has launched a new insurance product, Lemonade Autonomous Car, specifically for Tesla vehicles using the Full Self-Driving (FSD) feature. This offering is the result of a technical collaboration with Tesla, giving Lemonade access to detailed vehicle telemetry data that was previously unavailable to insurers.
The new usage-based policy will cut per-mile insurance rates by approximately 50% when FSD is engaged, based on data showing a significantly lower risk of accidents during autonomous operation. The product will initially roll out in Arizona on January 26, 2026, followed by Oregon a month later. Lemonade has stated that as Tesla's FSD software becomes safer through updates, it anticipates further price reductions for customers.