Tesla FSD Insurance: 50% Off in Oregon with Lemonade

Imagine paying half price for your insurance simply by activating Full Self-Driving… That’s exactly what Lemonade, the innovative insurance company, is offering with the launch of its revolutionary program in Oregon. The promise? A 50% reduction on miles driven with FSD activated.

This unprecedented offer is based on Tesla’s safety data, which shows that FSD is twice as safe as manual driving. I’ll explain how this insurance actually works and what this model could change for all Tesla owners.

Oregon Becomes the First State to Adopt autonomous driving-Based Insurance

Shai Wininger, co-founder of Lemonade, officially announced this on X, unveiling the “Autonomous Car” program. Oregon thus becomes the first US state to offer insurance that directly rewards the use of autonomous driving.

Why Oregon first? This state has favorable regulations for innovation and is an ideal test market for this type of experimentation. Lemonade, as a disruptive insurtech, positions itself in complete break with traditional insurers who are slow to integrate new automotive technologies.

This is historic: no insurance company in the United States had previously offered autonomous driving-based insurance with such a transparent and advantageous pricing system.

How does the 50% reduction actually work?

The FSD vs. manual miles tracking system

The mechanism relies on direct integration with the Tesla system via the manufacturer’s API. Rest assured: this requires your explicit authorization as the owner. No data is transmitted without your consent.

Automatic tracking precisely distinguishes between miles driven in Full Self-Driving and miles driven manually. Let’s take a concrete example: if you drive 1000 miles per month, 600 of which are in FSD, you benefit from a 50% reduction on those 600 miles, which is approximately a 30% overall reduction on your monthly premium.

No minimum usage required

One of the most interesting aspects of this offer? Total flexibility. There is no minimum FSD usage to benefit from the reduction. You use FSD when you want, and the discount automatically adjusts each month based on your actual usage.

No penalty if you decide to drive manually for a month. This approach encourages the gradual adoption of FSD, especially for highway trips or long journeys where the system excels. To check if your vehicle is compatible with this type of program, remember to consult the points to check during your Tesla delivery.

The safety data that justifies this discount

This massive reduction doesn’t come out of nowhere. It is based on impressive safety data collected by Tesla. In the fourth quarter of 2024, Full Self-Driving had accumulated over 7.5 billion miles driven.

Analysis of this data shows that FSD is 2x safer than manual driving, according to Tesla’s methodology which measures the number of accidents per million miles driven. For Lemonade, the economic logic is clear: fewer accidents mean fewer claims to reimburse.

This approach could even evolve positively: as FSD improves with versions 13.x and beyond, reductions could increase proportionally. A virtuous cycle that benefits both insurers and policyholders.

Eligibility conditions and current limitations

Let’s be transparent about the access conditions for this program. Your Tesla must be equipped with Hardware 4 minimum, which mainly concerns Model 3 and Model Y produced from 2024, as well as recent Tesla Model S and X refresh models.

The required firmware version is 2025.44.25.5 or higher. Geographically, the restriction is clear: Oregon only for now. This is a understandable limitation for a test launch of this magnitude.

Crucial point: in case of an incident, the coverage remains identical whether you are in FSD or manual driving. No discrimination in terms of compensation. Lemonade also offers bundling with its other products like home insurance to further optimize your savings. To better understand the technical differences between Teslas depending on their origin, this can help you identify your hardware configuration.

A model that could expand and disrupt the market

Oregon is just the beginning. This disruptive model has considerable expansion potential to other US states. The question is no longer “if” but “when” this deployment will accelerate.

This program directly competes with Tesla Insurance, available in 12 states, but with a different approach. Tesla Insurance calculates rates based on a global Safety Score, while Lemonade focuses specifically on FSD miles driven. Two philosophies, two methodologies, but a common goal: rewarding safe driving.

What about Europe? What about France? That’s the question many are asking. European regulatory challenges are real, particularly concerning the recognition of Level 2 autonomous driving. This evolution is part of the evolution of Tesla’s offering and its accessibility, which is gradually transforming the entire automotive ecosystem.

My view? This is the beginning of a profound transformation of the car insurance market. Traditional insurers will have to adapt quickly or risk being overtaken by these innovative players. Even if insurance industry experts remain cautious about certain aspects of autonomous driving, the figures argue in favor of this pricing evolution.

This Lemonade initiative in Oregon proves one thing: FSD not only makes driving more comfortable, it becomes economically advantageous. With a 50% reduction on autonomous miles and solid safety data, the calculation is quickly made for eligible Tesla owners.

To be watched closely for the next states and… one day in Europe? And you, if this offer existed in France tomorrow, would you take the plunge into FSD?