Lemonade has expanded its Autonomous Car insurance product to Indiana, offering Tesla drivers reduced insurance rates for miles driven using the automaker’s Full Self-Driving (Supervised) driver-assistance system.
The insurance product applies a 50% discount to per-mile insurance charges when a Tesla vehicle is operating with Full Self-Driving (Supervised) engaged, according to the company.
The offering is now available to eligible Tesla owners in Indiana through the Lemonade mobile application and online quote platform.
Usage-Based Insurance Model
Lemonade’s Autonomous Car insurance links insurance pricing to the use of Tesla’s advanced driver-assistance technology.
The company said the discount is based on its analysis of driving data, which it believes indicates a lower likelihood of accidents during periods when Full Self-Driving (Supervised) is active.
Tesla’s Full Self-Driving (Supervised) system assists with steering, acceleration and braking but requires drivers to remain attentive and prepared to take control of the vehicle at all times.
Company Cites Data-Driven Pricing
Lemonade said the insurance product is designed to reduce ownership costs for Tesla drivers while reflecting vehicle usage patterns.
“This first-of-its-kind insurance product cuts Tesla’s cost of ownership by slashing insurance prices in half for miles driven with FSD (Supervised),” said Shai Wininger, president and co-founder of Lemonade.
“Tesla’s safe FSD (Supervised) tech reduces the chances of getting into an accident. Our intelligent pricing models see this in the data and can pass real savings, with high precision, on to Tesla customers.”
The company did not disclose detailed data supporting its assessment but said its pricing models are based on observed driving behavior and risk patterns.
Additional Bundling Discounts
Lemonade said customers may qualify for further discounts by combining Autonomous Car insurance with other products offered by the company, including renters, homeowners and pet insurance policies.
The insurer continues to offer its standard automobile insurance products for Tesla and non-Tesla vehicles across multiple U.S. markets.
Coverage Available Across Multiple States
According to Lemonade, its conventional automobile insurance products are currently available in Arizona, California, Colorado, Illinois, Indiana, Ohio, Oregon, Tennessee, Texas and Washington.
The launch reflects growing interest within the insurance industry in usage-based and technology-linked pricing models as automakers increasingly deploy advanced driver-assistance systems and automated driving features.
Insurers have been exploring ways to incorporate vehicle data and driver behavior into underwriting decisions as connected vehicle technologies become more widespread.