Lemonade Launching Autonomous Vehicle Insurance

Digital insurance company Lemonade is now offering autonomous vehicle coverage .

Lemonade Autonomous Car insurance, which is starting with Tesla Full Self-Driving cars, is offering cuts per-mile rates for FSD-engaged driving by roughly 50%, reduced risk during autonomous operation, the company said.

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Lemonade said it expects further reductions as Tesla releases FSD software updates, expected to make the cars even safer over time. According to Lemonade, a collaboration with Tesla has given Lemonade access to vehicle data that feeds into the company’s usage-based risk prediction models to distinguish between autonomous and human driving, as well as predict risk based on the autonomous software version installed in the car, the precision of its sensors, and other factors.

The company supports intermittent use of FSD, as well as households with a mix of Teslas and standard non-FSD vehicles from other manufacturers. Customers can also get additional discounts for safe driving behavior, as well as savings for bundling.

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The product will begin rolling out in Arizona on January 26 and in Oregon a month later.