Insurance provider Lemonade, Inc. (NYSE: LMND) is making headlines by offering a unique discount to Tesla (NASDAQ: TSLA) customers who use Full Self-Driving (FSD) on their cars. The company is enticing Tesla owners in Oregon with a 50% discount on insurance premiums for using FSD technology.
On their dedicated web page for Tesla FSD users, Lemonade emphasizes the changing landscape of driving and the need for insurance to adapt accordingly. The offer is currently exclusive to Oregon residents, where Lemonade is providing a 50% discount on every mile driven with FSD. This innovative approach takes into account the enhanced safety of Tesla’s self-driving technology compared to human drivers.
This move marks the first time a third-party insurance provider has incorporated driving behavior, particularly FSD usage, as a key factor in premium calculations. While Tesla’s own insurance service also considers safe driving behavior and FSD usage, Lemonade’s discount of up to 50% sets a new standard in the industry.
Tesla Insurance, on the other hand, offers a more modest 10% discount for safe driving behavior and FSD usage. With each update, Tesla’s Full Self-Driving AI technology continues to improve, enhancing its capabilities on city streets and highways.
Lemonade believes that Tesla’s self-driving technology is significantly safer than human drivers, hence the substantial discount offered to FSD users. The company has even provided a graph showing the correlation between insurance prices and Tesla FSD’s safety improvements over time, hinting at potential further reductions in premiums as FSD technology advances.
With Tesla’s introduction of the FSD v14.2 software update, including the Self-Driving Stats feature, owners can easily track their FSD usage and share data with third-party insurance providers like Lemonade. This data-driven approach allows for a more accurate assessment of risk and enables tailored pricing based on actual driving behavior.
While Lemonade’s FSD-based insurance pricing is currently limited to Oregon, the company plans to expand this offering to other cities in the near future. As Tesla continues to refine its FSD technology and more customers opt for autonomous driving features, the landscape of car insurance is set to evolve rapidly.
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