- Lemonade has expanded its Autonomous Car insurance to Tesla vehicles equipped with HW3 and FSD (Supervised) v14 Lite, offering 30% savings on miles driven with the system engaged.
- Tesla drivers with newer HW4 hardware and FSD v14.2 or later remain eligible for 50% discounts on qualifying miles, with the program currently available in Arizona, Colorado and Tennessee.
- Lemonade uses Tesla’s Fleet API, with customer permission, to distinguish between supervised FSD and human-driven miles, allowing insurance premiums to reflect how the vehicle is operated.
Lemonade has expanded its Autonomous Car insurance program to include Tesla vehicles equipped with previous-generation HW3 hardware, extending usage-based insurance discounts to drivers using Tesla’s new Full Self-Driving (Supervised) v14 Lite software.
Beginning October 8, 2026, eligible Tesla owners in Arizona, Colorado and Tennessee can receive a 30% discount on miles driven with FSD (Supervised) v14 Lite engaged.
Drivers operating newer Tesla vehicles equipped with HW4 hardware and FSD v14.2 or later continue to qualify for a 50% discount on miles driven using the supervised driving system.
Tesla Insurance offers an insurance premium benefit to Tesla owners who have purchased or subscribed to Full Self-Driving (Supervised). Eligible customers who drive with FSD (Supervised) engaged will receive a reduction on their premium. The more you drive with FSD (Supervised) engaged, the bigger the reduction is on your insurance premium for certain coverages on your Tesla Insurance policy.
The expansion broadens access to Lemonade’s autonomous-driving insurance pricing model, which differentiates between human-driven mileage and miles completed with Tesla’s driver-assistance technology engaged.
FSD Lite is Tesla’s adaptation of its version 14 driving software for vehicles using HW3, the company’s previous-generation onboard computing hardware, also known as AI3.
According to Tesla, the software incorporates driving capabilities developed for its newer hardware into the camera and computing configuration of older vehicles. The company says the update improves proactive and reactive responses in challenging driving situations.
Lemonade Autonomous Car uses Tesla’s Fleet API to obtain vehicle operating data with the customer’s permission. The integration enables the insurer to identify when FSD (Supervised) is engaged and distinguish those miles from driving performed manually.
Tesla has done something remarkable with v14 Lite by taking the intelligence from its newest hardware and making it available to owners of older Teslas. We’re excited to launch our support for the new FSD Lite with three states today, and more coming soon.
Shai Wininger, President and Co-Founder of Lemonade
Insurance pricing can then be calculated separately for the two types of mileage, providing discounts specifically for qualifying FSD-assisted driving rather than applying a uniform reduction to all miles traveled.
The approach allows Lemonade to incorporate vehicle technology and actual driving activity into its insurance pricing model.
Additional discounts are available to eligible customers who combine their auto insurance with Lemonade renters, pet or homeowners coverage.
Lemonade plans to extend support for FSD v14 Lite beyond the initial three states, although the company has not specified a timetable or identified additional markets.
Tesla’s Full Self-Driving (Supervised) technology requires continuous driver supervision and does not make vehicles fully autonomous. The insurance discounts apply to qualifying miles driven with the supervised system engaged.
