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Tesla Shaving Money Off Insurance Bills for Owners Who Use Full Self-Driving

Tesla Shaving Money Off Insurance Bills for Owners Who Use Full Self-Driving

Yahoo04-02-2025

Like any computer program, Tesla's semi-autonomous Full Self-Driving (Supervised) technology uses data to function properly. We're not talking about just a few gigabytes either; it leverages untold gigabytes of data to do what it does — and the more data it can gather, the more it can learn and improve. That gives the electric car company a big motivation to encourage drivers to utilize FSD as much as possible... so it's likely one of the reasons the carmaker is now offering insurance discounts to those who use the technology. And the more you use it, Tesla says, the more you save.
Unlike many semi-autonomous systems used by other automakers, FSD leverages cameras rather than radar sensors or highly accurate maps to help the car navigate the world. All of the video captured while FSD is active, in turn, can become part of the data Tesla uses to train the system overall.
The insurance discount is available to Tesla owners who have already bought or subscribed to FSD (Supervised). The carmaker tells customers that "The more you drive with FSD (Supervised) enabled, the bigger the discount is on your insurance premium." Over the course of the month, Tesla will collect data from subscribers, including how far they've driven and how many of those miles were on FSD. Then, Tesla Insurance will calculate the owner's next monthly premium based on their percentage of Full Self-Driving use. Those who use FSD for at least half of all miles driven will see up to 10% off their insurance bill. Notably, the discount is only related to FSD; usage of the less-advanced Autopilot doesn't contribute to any deal.
Notably, there are some pretty big hoops to jump through to obtain this discount. Namely, one must live in either Texas or Arizona; the other 48 states don't have access to this deal for now. In addition, it's only available in those states to those who are new policy holders as of February 1, 2025. Customers who already have Tesla insurance will have to wait until at least March 8 before they can renew and take advantage of this discount.
In addition, the discount might not apply to some of the coverage certain Tesla owners have. For example, the automaker says that comprehensive, uninsured motorist bodily injury (UMBI) or uninsured motorist property damage (UMPD) may not be eligible for the discount. Finally, it isn't available to customers in the midst of a 30-day trial of FSD but haven't purchased the $8000 option outright. There are lots of limitations — but we wouldn't be surprised to see the brand roll this out to more people as time goes on and Tesla pushes further into the self-driving realm.
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