An insurer called Lemonade will cut your per-mile insurance cost in half for any mile you drive using FSD (Supervised) — but only if you live in one of five states and your Tesla has Hardware 4.
How the discount actually works
Lemonade’s Autonomous Car insurance product, as reported by Teslarati on August 3, 2026, connects to a Tesla through Tesla’s Fleet API, with the owner’s permission, to automatically tell FSD-engaged miles apart from manually driven ones. Lemonade then applies a low base rate plus a per-mile charge, cut by 50 percent for every mile logged with FSD active. There’s no separate form to fill out or mileage to self-report; the discount is applied automatically based on what the car itself records.
Where it’s actually available
As of that August 3 report, the discount is live in five states: Arizona, Oregon, Indiana, Colorado, and Tennessee. It launched first in Arizona and Oregon in January 2026, then expanded state by state through the year. If you don’t live in one of those five states, this specific product isn’t available to you yet, no matter how much FSD you use.
What your car needs
Eligibility requires Tesla Hardware 4 and a recent FSD software version. Lemonade says it prices the discount around data showing FSD-engaged miles run roughly twice as safe as manually driven ones, which is also the rationale it gives for the size of the cut.
One owner walks through it
Kim Java looked at whether turning on FSD could meaningfully cut an insurance bill in a video on her channel.
The video walks through one owner’s experience and math. Whether this specific discount applies to you depends on your state and hardware, covered above — check those before assuming the savings carry over to your own policy.
