Lemonade Proposes “Almost Free” Insurance for Tesla FSD — A Potential Game Changer for EV Owners
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Introduction
Tesla’s Full Self-Driving (FSD) technology has recently captured widespread attention following a bold new proposal from Shai Wininger, co-founder and president of Lemonade. Wininger suggested a plan to insure Tesla vehicles equipped with FSD for “almost free”—an idea that could dramatically reshape the vehicle insurance landscape for Tesla owners.
Traditionally, insuring a Tesla has been viewed as expensive due to the vehicles’ cutting-edge technology and high repair costs. However, the rise of FSD has prompted tech innovators like Wininger to argue that Teslas should actually be insured at lower rates, pointing to data indicating that vehicles operating on FSD tend to be safer than those driven manually.
The Promise of Full Self-Driving
Tesla’s own safety reports lend weight to these claims. In its Q2 2025 Vehicle Safety Report, the company stated that driving with FSD is nearly ten times safer than traditional driving. This assertion has fueled discussions among industry experts, consumers, and insurance providers alike.
Wininger—who leads Lemonade, a disruptive insurance company serving nearly two million customers—recently took to X to announce a new integration with Tesla vehicles. The integration aims to make the insurance experience for Tesla drivers more seamless, data-driven, and cost-effective.
Integration with Tesla Vehicles
According to Wininger, Lemonade’s direct integration with Tesla eliminates the need for a usage-based insurance (UBI) device in its Pay Per Mile product. This advancement not only simplifies the activation process for Lemonade Car customers who drive Teslas but also cuts down on hardware and shipping costs, ultimately enabling more affordable premiums.
He highlighted that the Tesla API provides far richer and more precise driving behavior data than traditional UBI hardware, allowing Lemonade to assess risk and set pricing with greater accuracy.
A Game-Changing Insurance Proposal
In his announcement, Wininger presented a bold idea directly to Tesla CEO Elon Musk—stating that Lemonade would be “happy to explore insuring Tesla FSD miles for (almost) free.” The proposal represents more than just a cost-saving opportunity; it also encourages Tesla owners to take full advantage of the FSD system’s capabilities.
If realized, this kind of offer could fundamentally shift the economics of Tesla ownership—making the vehicles more attractive and attainable, particularly in states where Tesla’s own insurance services are not yet available.
Lemonade’s Expansion Plans
Currently, Tesla Insurance operates in twelve U.S. states, with plans to expand into Florida. However, there have been no new state rollouts in nearly three years. Wininger’s proposal could open a pathway for Lemonade to fill that void, offering a viable alternative in regions not yet covered by Tesla Insurance.
The idea of Lemonade insuring FSD miles at minimal cost presents an appealing opportunity for Tesla owners seeking to lower their overall expenses. This approach could also broaden Tesla’s market appeal by making ownership more affordable and financially sustainable.
The Broader Impact on the Insurance Industry
This development raises pivotal questions about how traditional insurers will adapt to an automotive future increasingly shaped by automation and data-driven safety. As FSD technology becomes more mainstream, insurers may be compelled to rethink their models and risk calculations to remain relevant in a rapidly evolving market.
With the growing prevalence of safer driving technologies, the justification for high insurance premiums could diminish—potentially leading to a paradigm shift in how auto insurance is priced and structured.
Conclusion
Wininger’s proposal to insure Tesla’s FSD miles for nearly free underscores the ongoing transformation within both the automotive and insurance sectors. As technology continues to advance, the way society approaches vehicle insurance will likely evolve in tandem—offering consumers greater savings, increased transparency, and enhanced safety.
As this story unfolds, it will be worth watching how Tesla and Lemonade navigate this innovative concept and what ripple effects it might create across the broader market. The convergence of technology, safety, and affordability may ultimately redefine the future of car ownership itself.