- Insurance company Lemonade has launched Autonomous Car insurance explicitly made for drivers who use Tesla’s FSD system.
- The company claims that using this insurance can cut costs in half.
- It’s currently rolling out in Arizona and later in Oregon.
Although earlier generations thought we’d have flying cars by now, what’s becoming the new goal is self-driving cars. With both autonomous driving and AI on the rise, we should have suspected it’d only be a matter of time before the two combined in the insurance landscape.
That’s where Lemonade, an AI-driven digital insurance company, is aiming to make a mark. The company has introduced a new car insurance concept that is designed for semi-autonomous cars.
This idea is rolling out as a collaboration with Tesla’s Full Self-Driving (Supervised) system, also known as FSD. The company claims it could cut insurance rates by 50%.
About ‘“‘Self-Driving’ Cars
Many automakers are working on developing self-driving cars. None are there yet. Names like FSD can make the systems sound more capable than they are, which worries safety advocates.
Related: Self-Driving Cars – Everything You Need to Know
Automakers use a five-level system to track their efforts. Most today have a Level 2 system, like Tesla’s FSD. It can steer, accelerate, and brake a car if a driver is paying constant attention to correct its mistakes.
Several automakers say they have Level 3 systems in the works, which will let drivers safely look away from the road if they’re ready to take over when prompted. So far, only Mercedes sells one of these, and only in Nevada and parts of California.
How It Works
This comes at a time when electric vehicles are much pricier to insure, so it might be seen as a relief to some. However, it’s equally important to keep in mind other costs behind this self-driving insurance. That being, the data you’re giving over when you commit.
Your driving data will be fed into Lemonade’s “usage-based risk prediction models” to allow for research into “uniquely distinguishing between autonomous and human driving.” Lemonade claims that, with access to Tesla vehicle data previously deemed unavailable, this research will enable safer driving over time in these cars.
Here’s the breakdown: Give your real-time driving data to the company for insurance discounts. Lemonade states that the more this insurance is used, the safer FSD becomes. Consequently, the insurance price will continue to decrease.
What It Means for Tesla Drivers
To make it easier to commit, this insurance does not require full-time use of FSD in Tesla vehicles. It can be used intermittently in the vehicle and still be covered. It accommodates households with a mix of Teslas and other cars, as the company offers coverage for a combination of these vehicles under one policy.
With more monthly prices being added to the Tesla lineup, a 50% discount on insurance could mean significant savings. Tesla offers a maximum 10% discount on certain coverages for drivers’ Tesla Insurance policy, but many stipulations apply, and it doesn’t cover the entire premium.
The insurance began rolling out in Arizona on Jan. 26 and will be released in Oregon a month later.
