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Tesla Model Y on Arizona highway with Full Self-Driving engaged, Lemonade app showing 50% insurance savings for FSD users.
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Lemonade launches cheaper insurance for Tesla FSD users

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Insurance provider Lemonade Inc. has introduced a new policy offering about 50% lower per-mile rates for Tesla drivers using the Full Self-Driving system. The product, called Autonomous Car Insurance, starts in Arizona on January 26 and expands to Oregon in February. It relies on data from Tesla to assess reduced risk during FSD engagement.

U.S. insurer Lemonade has introduced a new insurance product that cuts rates by 50% for miles driven using Tesla's Full Self-Driving (Supervised) software. The company cites data showing FSD is safer than human drivers, marking the first external validation of Tesla's safety claims by a major underwriter. This pay-per-mile policy integrates with Tesla's API to track usage.

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Insurer Lemonade has introduced a new product offering up to 50% lower rates for Tesla vehicles using Full Self-Driving (FSD) technology. This pay-per-mile policy undercuts Tesla's own insurance discounts and stems from a data-sharing partnership with the automaker. The move highlights growing confidence in assisted driving features amid ongoing safety debates.

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