Lemonade, an AI-powered insurer, has recently shared data indicating a significant shift in how Tesla owners are utilizing Full Self-Driving (FSD) technology. According to Lemonade’s co-founder and president, Shai Wininger, there has been a notable increase in the use of autonomous driving features among customers.
The data reveals that half of Tesla owners who have opted for FSD coverage through Lemonade are allowing the software to drive autonomously between 90-100% of the time. This trend showcases a growing confidence in FSD technology and its capabilities.
The surge in autonomous miles can be attributed to a unique technical partnership between Lemonade and Tesla, which was established earlier this year. Lemonade’s autonomous car insurance program is the first of its kind to directly integrate with Tesla’s vehicle telemetry via the Tesla Fleet API. This integration enables Lemonade to differentiate between manual driving and FSD activation at the mile level.
Tesla’s safety data indicates that FSD is approximately twice as safe as manual driving, prompting Lemonade to offer a significant discount on every mile driven using the software. The more a driver utilizes FSD, the lower their monthly insurance premium becomes. This program is currently available to Tesla owners with Hardware 4, which enables access to the latest FSD version 14.
As of March 2026, the specialized FSD insurance program is active in states such as Arizona and Oregon, with plans for further expansion throughout North America. These developments come on the heels of a record-breaking start to the year for Tesla, with the global fleet logging over one billion FSD miles in the first 50 days of 2026.
The collaboration between Lemonade and Tesla underscores the increasing adoption of autonomous driving technology and the potential for innovative insurance solutions tailored to FSD users. With advancements in FSD technology and the growing confidence in its safety and efficacy, we can expect to see continued growth in autonomous driving capabilities and insurance offerings in the future.