FSDClarity

Tesla FSD Insurance Discounts in 2026: Which Insurers and Which States

4 min readBy the FSDClarity team

On this page

As of October 2026, Lemonade is the main insurer with a published discount for Tesla FSD: about 50% off the rate for miles driven with FSD engaged, in six states. Tesla Insurance doesn't discount FSD miles directly, but its newest Safety Score no longer counts the miles you drive on driver-assist features.

Here's where FSD discounts are available, who qualifies, and how much they're really worth.

Which hardware do you have?

Check if your Tesla has HW3, HW4, or AI5 and see which FSD features are supported.

Check Hardware →

Lemonade's FSD discount

Lemonade launched Autonomous Car pricing in January 2026. It splits your mileage into miles you drive yourself and miles driven on FSD, and charges about half the normal rate for FSD miles. Lemonade reads FSD use from your Tesla through a connected account.

Where it's available

StateLaunched
ArizonaJanuary 2026
OregonFebruary 2026
IndianaJune 2026
ColoradoJune 2026
TennesseeAugust 2026
MissouriSeptember 2026

Lemonade has been adding a state every month or two, so check its site if yours isn't listed. It isn't available in California or Texas yet.

Who qualifies

  • Hardware 4 (AI4) or newer. HW3 Teslas don't qualify. Not sure? Use our Tesla Hardware Checker.
  • A recent FSD software version — Lemonade sets a minimum.
  • An active FSD subscription or purchased FSD — you need FSD to drive FSD miles.

How much it saves

The discount only applies to FSD miles, so your saving depends on how much of your driving is on FSD:

Share of miles on FSDApproximate saving on the mileage part of your premium
25%about 12%
50%about 25%
75%about 37%

Fixed parts of the premium aren't discounted, so the saving on your total bill is a bit smaller. Try your own numbers with the Lemonade vs Tesla Insurance Calculator.

For a deeper look at Lemonade itself, read our honest Lemonade review for Tesla owners and the Tesla Insurance vs Lemonade comparison.

Tesla Insurance and FSD

Tesla Insurance prices most states with a monthly Safety Score. Under Safety Score 3.0, rolling out at renewals in several states, the score only counts behaviors like hard braking and following distance on miles you drive without driver-assist features. In practice, more FSD miles means fewer chances to lose points — an indirect benefit rather than a set discount.

In California, Tesla Insurance can't price on driving data at all, so FSD use doesn't change California premiums.

Other insurers

Large insurers price Teslas on traditional factors. Some offer general telematics discounts through their own apps, but none we're aware of has a published, FSD-specific discount as of October 2026. Ask your insurer directly — this is changing fast.

Is chasing an FSD discount worth it?

It's worth it if you already have HW4, live in a Lemonade FSD state and use FSD for much of your driving. It isn't worth paying $99 a month for FSD just to unlock an insurance discount — at typical premiums, the discount won't cover the subscription.

Frequently asked questions

Does Tesla give an insurance discount for FSD?

Not as a fixed discount. Tesla Insurance's Safety Score 3.0 stops scoring the miles you drive on driver-assist features, which can help your score, but there's no set percentage off.

Which states have the Lemonade FSD discount?

As of October 2026: Arizona, Oregon, Indiana, Colorado, Tennessee and Missouri.

Can HW3 Teslas get FSD insurance discounts?

Not from Lemonade, which requires Hardware 4 or newer.

The bottom line

FSD insurance discounts are real but limited: Lemonade's 50% FSD-mile rate in six states, for HW4 cars. If that's you, get a quote. Everywhere else, compare normal quotes — and check back, because the list of states keeps growing.

Related guides