How does Lemonade Autonomous Car insurance work?
Lemonade is the first to reward safer self-driving miles with real discounts.
Lemonade Autonomous Car insurance is the first car insurance designed specifically for self-driving cars. It offers Tesla owners 50% off every mile driven using Full Self-Driving technology by automatically tracking FSD miles versus manual miles through direct Tesla integration.
TL;DR
- Lemonade offers the first autonomous car insurance with 50% discounts for Tesla FSD miles
- No special insurance endorsements needed, our autonomous coverage integrates seamlessly with regular car insurance requirements
- With your permission, we track your driving automatically through Tesla’s Fleet API. No devices or self-reporting required
- FSD discounts will become more significant as safety rates increase
How Lemonade Autonomous Car insurance works
Lemonade Autonomous Car insurance is built on a simple principle: Tesla’s data shows that Full Self-Driving miles are twice as safe as manual driving, so they should cost 50% less on your insurance premiums.
When you drive using Tesla’s FSD technology, our system automatically tracks those miles and applies the discount. Manual miles are priced normally, while your FSD miles get the full 50% reduction, creating a pricing model that actually reflects the safety benefits of autonomous driving.
Seamless Tesla integration
Unlike traditional car insurance that relies on estimates, Lemonade connects directly to your Tesla using Tesla’s Fleet API, which gives Lemonade access to vehicle data with a customer’s permission. This means:
- No additional devices to install
- No manual mileage reporting
- Automatic tracking of FSD versus manual miles
- Real-time data integration between Tesla and Lemonade apps
The technology handles everything behind the scenes, so you just drive and save.
Current availability and expansion
Lemonade Autonomous Car insurance is currently available for Tesla drivers in Arizona and launching in Oregon on February 26, 2026, with more states coming soon. To qualify, your Tesla needs:
- Hardware 4.0 or higher
- Firmware version 2025.44.25.5 or newer (easily updated for free through your Tesla app)
How Lemonade’s approach differs from traditional insurance companies
Traditional insurers might offer small discounts for safety features like adaptive cruise control or lane-keeping assistance, but they don’t distinguish between these basic driver assistance systems and sophisticated autonomous driving technology.
Lemonade recognizes that Tesla’s Full Self-Driving represents a fundamentally different level of automation, one that deserves a fundamentally different insurance approach.
The safety data behind our pricing
Tesla reports that FSD technology leads to:
- 52% overall crash reduction
- 14% reduction in highway incidents
- 63% reduction in non-highway accidents
These aren’t theoretical benefits, they’re real safety improvements that Lemonade’s pricing reflects. When autonomous driving technology demonstrably reduces risk, insurance costs should follow.
Real-time pricing based on actual usage
Instead of estimating your annual mileage and hoping for the best, Lemonade’s system knows exactly how many miles you drive in FSD mode versus manual mode. This usage-based insurance model means you pay precisely for the risk you represent.
Preparing for the future of autonomous vehicles
As car manufacturers like Ford, GM, and others advance their autonomous driving technology, Lemonade is building the infrastructure to support them. Our approach with Tesla creates the foundation for insuring all types of self-driving vehicles as they become available.
What this means for Tesla owners
If you own a Tesla with Hardware 4.0 or higher in an eligible state, you can start saving immediately with Lemonade Autonomous Car insurance. The 50% discount applies to every mile you drive using Full Self-Driving, potentially reducing your overall insurance costs significantly depending on how often you use the technology.
Bundle savings
Lemonade Autonomous Car insurance works alongside our other products, so Tesla owners can bundle their autonomous coverage with homeowners, renters, pet, or term life insurance for additional discounts.
Easy setup and management
Getting started with Lemonade Autonomous Car insurance is straightforward:
- Verify your Tesla meets hardware and firmware requirements
- Connect your Tesla account to Lemonade
- Start driving with FSD and saving automatically
Everything is managed through the Lemonade app, with transparent tracking of your FSD miles and savings.
Making the switch to Lemonade Autonomous Car insurance
Whether you’re a current Tesla owner interested in Lemonade Autonomous Car insurance or considering buying a Tesla to take advantage of this innovative coverage, Lemonade makes the process simple.
Our autonomous car insurance represents the future of auto insurance, pricing that actually reflects the safety benefits of new technology, seamless integration with cutting-edge vehicles, and transparent, fair coverage that evolves with your driving.
Ready to see how much you could save with the first insurance designed specifically for autonomous vehicles? Get a quote today and discover why safer miles should cost less.
Frequently asked questions
How much can I save with Lemonade Autonomous Car insurance?
You’ll save 50% on every mile driven using Tesla’s Full Self-Driving technology. Your total savings depend on how often you use FSD versus manual driving, but many drivers see significant reductions in their overall insurance premiums.
Do I need special insurance for my Tesla's autonomous features?
No special policies are required: Lemonade Autonomous Car insurance integrates with regular car insurance requirements. We simply price your FSD miles at 50% less than manual miles because they’re demonstrably safer.
What if my Tesla doesn't have the right hardware or firmware?
Your Tesla needs Hardware 4.0 or higher and firmware version 2025.44.25.5 or newer. The firmware update is free and easy to install through your Tesla app or directly in your car.
Can I get Lemonade Autonomous Car insurance if I already have Lemonade car insurance?
Existing customers can add autonomous coverage at their next renewal. We don’t recommend canceling your current policy early, as you’d pay unnecessary fees for a new policy setup.
When will Lemonade Autonomous Car insurance be available in other states?
We’re working to expand to more states as quickly as possible while ensuring compliance with local regulations. Follow our updates for announcements about new state availability.
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