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Lemonade Autonomous Car Insurance (With Tesla FSD Discount)

https://www.lemonade.com/car/explained/self-driving-car-insurance/
16•KellyCriterion•3h ago

Comments

FrankWilhoit•2h ago
One's first thought is that they ought to be running away from underwriting this as fast as they can go. But then one realizes that it is all profit -- they need never pay a claim, because in accidents involving autonomous vehicles, it will never be possible to establish fault; and then one sees that the primary purpose of most automations is to obscure responsibility.
nradov•1h ago
You're not making any sense. In terms of civil liability, fault is attached to the vehicle regardless of what autonomous systems might have been in use at the time of a collision.
SoftTalker•1h ago
Or even who was driving it, in the case of ordinary cars.
jgbuddy•1h ago
> and then one sees that the primary purpose of most automations is to obscure responsibility.

Are you saying that the investments in FSD by tesla have been with the goal of letting drivers get a way with accidents? The law is black and white

tehwebguy•1h ago
One might imagine that lower courts won’t determine fault, one would be wrong.
deelayman•54m ago
I think there's a narrow unregulated space where this could be true. I'm exercising my creativity trying to imagine it - where automations are built with the outcome of obscured responsibility in mind. And I could understand profit as a possible driving factor for that outcome.

As an extreme end of a spectrum example, there's been worry and debate for decades over automating military capabilities to the point where it becomes "push button to win war". There used to be, and hopefully still is, lots of restraint towards heading in that direction - in recognition of the need for ethics validation in automated judgements. The topic comes up now and then around Tesla's, and impossible decisions that FSD will have to make.

So at a certain point, and it may be right around the point of serious physical harm, the design decision to have or not have human-in-the-middle accountability seems to run into ethical constraints. In reality it's the ruthless bottom line focused corps - that don't seem to be the norm, but may have an outsized impact - that actually push up against ethical constraints. But even then, I would be wary as an executive documenting a decision to disregard potential harms at one of them shops. That line is being tested, but it's still there.

In my actual experience with automations, they've always been derived from laziness / reducing effort for everyone, or "because we can", and sometimes a need to reduce human error.

sabareesh•1h ago
Tesla have their own Insurance product which is already very competitive compared to other providers. Not sure if lemonade can beat them . Tesla's insurance product has similar objective in place already where it rewards self driving over manual driving.
kjksf•1h ago
Tesla is cooperating with Lemonade on this by providing them necessary user driving data.

If Tesla didn't want Lemonade to provide this, they could block them.

Strategically, Tesla doesn't want to be an insurer. They started the insurance product years ago, before Lemonade also offered this, to make FSD more attractive to buyers.

But the expansion stalled, maybe because the state bureaucracy or maybe because Tesla shifted priority to other things.

In conclusion: Tesla is happy that Lemonade offers this. It makes Tesla cars more attractive to buyers without Tesla doing the work of starting an insurance company in every state.

mullingitover•56m ago
> But the expansion stalled, maybe because the state bureaucracy or maybe because Tesla shifted priority to other things.

If the math was mathing, it would be malpractice not to expand it. I'm betting that their scheme simply wasn't workable, given the extremely high costs of claims (Tesla repairs aren't cheap) relative to the low rates that they were collecting on premiums. The cheap premiums are probably a form of market dumping to get people to buy their FSD product, the sales of which boosts their share price.

jasoncartwright•1h ago
If it autonomous or self-driving then why is the person in the car paying for the insurance? Surely if it's Tesla making the decisions, they need the insurance?
jgbuddy•1h ago
Because the operator is liable? Tesla as a company isn't driving the car, it's a ML model running on something like HW4 on bare metal in the car itself. Would that make the silicon die legally liable?
throw20251220•1h ago
Who’s the “operator” of an “autonomous” car? If I sit in it and it drives me around, how am I an “operator”?
renewiltord•1h ago
If you get on a horse and let go of the reins you are also considered the operator of the horse. Such are the definitions in our society.
jasoncartwright•1h ago
Sounds like it's neither self-driving, nor autonomous, if I'm on the hook if it goes wrong.
scottbez1•54m ago
Yeah, Tesla gets to blame the “driver”, and has a history of releasing partial and carefully curated subsets of data from crashes to try to shift as much blame onto the driver as possible.

And the system is designed to set up drivers for failure.

An HCI challenge with mostly autonomous systems is that operators lose their awareness of the system, and when things go wrong you can easily get worse outcomes than if the system was fully manual with an engaged operator.

This is a well known challenge in the nuclear energy sector and airline industry (Air France 447) - how do you keep operators fully engaged even though they almost never need to intervene, because otherwise they’re likely to be missing critical context and make wrong decisions. These days you could probably argue the same is true of software engineers reviewing LLM code that’s often - but not always - correct.

thelastgallon•51m ago
Its neither self-driving, nor autonomous, eventually not even a car! (as Tesla slowly exits the car business). It will be 'insurance' on Speculation as a service, as Tesla skyrockets to $20T market cap. Tesla will successfully transition from a small revenue to pre-revenue company: https://www.youtube.com/watch?v=SYJdKW-UnFQ

The last few years of Tesla 'growth' show how this transition is unfolding. S and X production is shutdown, just a few more models to shutdown.

throw20251220•1h ago
It’s because you bought it. Don’t buy it if you don’t want to insure.
SoftTalker•1h ago
Yep, you bought it, you own it, you choose to operate it on the public roads. Therefore your liability.
9rx•1h ago
If you bought and owned it, you could sell it to another auto manufacturer for some pretty serious amounts of money.

In reality, you acquired a license to use it. Your liability should only go as far as you have agreed to identify the licenser.

Rebelgecko•1h ago
I don't think Tesla lets you buy FSD
davidhunter•1h ago
Seems like the role of the human operator in the age of AI is to be the entity they can throw in jail if the machine fails (e.g. driver, pilot)
jimt1234•1h ago
Not an expert here, but I recall reading that certain European countries (Spain???) allow liability to be put on the autonomous driving system, not the person in the car. Does anyone know more about this?
kjksf•1h ago
Because that's the law of the land currently.

The product you buy is called "FSD Supervised". It clearly states you're liable and must supervise the system.

I don't think there's law that would allow Tesla (or anyone else) to sell a passenger car with unsupervised system.

If you take Waymo or Tesla Robotaxi in Austin, you are not liable for accidents, Google or Tesla is.

That's because they operate on limited state laws that allow them to provide such service but the law doesn't allow selling such cars to people.

That's changing. Quite likely this year we will have federal law that will allow selling cars with fully unsupervised self-driving, in which case the insurance/liability will obviously land on the maker of the system, not person present in the car.

jasoncartwright•26m ago
I see. So not Tesla's product they are using to sell insurance around isn't "Full Self-Driving" or "Autonomous" like the page says.
FeloniousHam•16m ago
My current FSD usage is 90% over ~2000 miles (since v14.x). Besides driving everywhere, everyday with FSD, I have driven 4 hours garage to hotel valet without intervention. It is absolutely "Full Self-Driving" and "Autonomous".

FSD isn't perfect, but it is everyday amazing and useful.

jasoncartwright•12m ago
Yet still on relying you to cover it with your insurance. Again, clearly not autonomous.
cebert•1h ago
I own a Model Y with hardware version 4. FSD prevented my from getting in an accident with a drunk driver. It reacted much faster to the situation than I could have. Ever since, I’m sold that in a lot of circumstances, machines can drive better than humans.
throw20251220•1h ago
So does AEB in any modern car.
fred_is_fred•1h ago
Tesla fans have not realized that every car made since 2021ish can do this.
throw20251220•1h ago
Obviously.
mullingitover•54m ago
My 2016 Honda Civic has automatic braking (and it has lanekeep assist, so it's technologically superior to a 2026 Tesla).
1970-01-01•52m ago
It does more than AEB. It also knows to swerve out of the way during E: https://www.youtube.com/watch?v=c1MWml-81e0
dangus•1h ago
Although the money you paid to Elon Musk for FSD was directly used to help elect Donald Trump, who has started a mass human displacement campaign (a.k.a. Genocide), presided over 4th amendment violation as agency policy, presides over the highest immigration detainee death count in two decades, and sent a gestapo terror squad to execute an ICU nurse on the street.

And this is before we even discuss the threats against our allies and destruction of trade partnerships, devaluation of our hard earned dollars, etc.

Sorry, I know politics aren’t “relevant,” but actually, they are.

Glad you “didn’t harm anyone.”

Maybe people will find this comment distasteful and irrelevant. Personally, I hope Tesla owners who decide to brag about their purchase never hear peace about it and become motivated to sell their vehicles out of sheer embarrassment.

renewiltord•1h ago
Well, as everyone points out: Musk uses Tesla’s stock to fund things and Tesla’s stock is decoupled from fundamentals like revenue so that means that buying his car is decoupled from funding things. Practically a syllogism.
parineum•1h ago
> mass human displacement campaign (a.k.a. Genocide)

genocide /jĕn′ə-sīd″/ noun

    The systematic and widespread extermination or attempted extermination of a national, racial, religious, or ethnic group. The systematic killing of a racial or cultural group.
dangus•1h ago
Great, I’m glad your dictionary is happy about deporting 5 year olds.

“Uhm aktually it’s not a genocide it’s just a fascist police state”

Multiple humanitarian organizations define mass displacement as genocide and/or ethnic cleansing.

The holocaust literally started with mass deportations/detentions. Then the nazis figured out that it was easier to kill detainees.

mhb•25m ago
If you have some point to make about deporting 5 years olds or whatever, don't you think it would be more persuasive without provoking a tangential discussion about your idiosyncratic definition of genocide regardless of whatever organizations agree with you?
direwolf20•1h ago
Money is apolitical. Politics is not allowed on HN.
1970-01-01•1h ago
A 50% discount is pretty damning empirical evidence for FSD being better at driving your Tesla than you are.
jerlam•1h ago
We don't know if 50% makes it actually cheaper than other car insurance companies, or the coverage is comparable, or if they have comparable service. Or if they sell your location information to marketers.
dangus•1h ago
Or a price hike if the fleet API tattles on you for negative driving behaviors.

It may not be on the marketing copy but it’s almost certainly present in the contract.

_diyar•1h ago
Assuming this discount is offered broadly and indefinitely. Otherwise these might just be marketing dollars.
t1234s•1h ago
What happens if you have FSD turned off and like to drive fast on public roads. Will they see this telemetry and raise your rates?
jerlam•1h ago
It seems the answer is yes. From their web site:

> Fair prices, based on how you drive [...] Get a discount, and earn a lower premium as you drive better.

t1234s•54m ago
Bummer.. its super fun to floor them off the line.
xnx•1h ago
Marketing stunt
rebelde•58m ago
99/month is more than I have been willing to pay for FSD, but if it lowers my insurance by 200/month, I could be convinced.

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