Tesla Full Self-Driving Nears 'Almost Free' Insurance with Lemonade's Bold Offer

Lemonade, a prominent insurance company, has extended an extraordinary offer to Tesla owners, proposing to insure vehicles equipped with Full Self-Driving (FSD) capabilities for "almost free." This initiative stems from the belief held by some tech leaders that Teslas utilizing FSD are statistically safer than human drivers, potentially leading to significantly lower insurance premiums.

Key Takeaways

• Lemonade proposes insuring Tesla FSD miles for "almost free.

• The offer is contingent on Elon Musk's approval.

• Lemonade cites Tesla's API for richer driving data than traditional UBI devices.

• This could make owning and operating Teslas more cost-effective.

A Game-Changing Insurance Proposition

Shai Wininger, President and Co-founder of Lemonade, announced a direct integration with Tesla vehicles for Lemonade customers. This integration aims to eliminate the need for a separate telematics device (UBI device) in their Pay Per Mile product. By leveraging Tesla's API, Lemonade can access more detailed and accurate driving behavior data, which they believe surpasses that provided by traditional UBI devices.

This enhanced data access allows Lemonade to streamline the onboarding process for Tesla drivers, making it effortless to activate Lemonade Car insurance. Furthermore, it helps reduce hardware and shipping costs, paving the way for even lower prices for Tesla owners.

The "Almost Free" FSD Insurance Offer

Wininger took his proposal a step further by directly addressing Tesla CEO Elon Musk on X (formerly Twitter). He stated, "If @elonmusk is game, we’d be happy to explore insuring Tesla FSD miles for (almost) free." This offer suggests a potential future where the cost of insuring the autonomous driving miles of a Tesla could be drastically reduced, making the advanced technology even more accessible and cost-effective.

Expanding Insurance Options

Lemonade's proposed insurance plan would be particularly beneficial in states where Tesla's own in-house insurance program is not yet available. While Tesla Insurance currently operates in twelve states and is looking to expand, it has not entered a new state in approximately three years. Lemonade's initiative could provide a much-needed alternative for Tesla owners seeking competitive insurance rates, especially for those utilizing the Full Self-Driving suite.

This attractive offer from Lemonade could represent a significant shift in the automotive insurance landscape, potentially making Teslas even more appealing and affordable to own and operate throughout their lifespan.