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Tesla insurance discounts for FSD in 2026: Lemonade in three US states, Zurich in Australia
Event date The day Drive Tesla Canada reported Lemonade's HW3 extension. Zurich's change in Australia was reported on September 14, 2026. US AU
What happened
On October 8, 2026 Drive Tesla Canada reported that Lemonade extended its FSD discount to HW3 Teslas: 30% off every mile driven on FSD v14 Lite, alongside 50% off FSD miles for HW4 cars on v14.2 or later, in Arizona, Colorado and Tennessee. In Australia, Tesla North reported on September 14, 2026 that Zurich's InsureMyTesla now uses FSD (Supervised) as a rating factor, with no single published percentage.
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Two insurers, two very different models
| Insurer | Where | How the discount works | Who qualifies |
|---|---|---|---|
| Lemonade | Arizona, Colorado, Tennessee (US) | Miles on FSD and manual miles are priced separately. 50% off each FSD mile on HW4; 30% off each FSD mile on HW3 | HW4 on FSD v14.2 or later; HW3 (2019 or newer) on FSD v14 Lite with firmware 2026.20.6.11 or later |
| Zurich (InsureMyTesla) | Australia | FSD (Supervised) is one factor in normal underwriting; savings vary by quote | Model 3 and Model Y owners |
Drive Tesla Canada reports that Lemonade reads mileage through Tesla's Fleet API, so it knows which miles were driven with FSD engaged, and that current customers get the HW3 rate automatically at their next renewal. Lemonade says more states are coming; until they are named, the program covers those three.
Zurich works differently, according to Tesla North. It does not collect per-driver FSD engagement data. FSD use is built into the premium the same way other risk factors are, so there is no percentage to quote and no way to know the effect without asking for a quote. Tesla North describes Zurich as Tesla's preferred insurer in Australia since 2024.
Who this affects
Owners who already pay for FSD (Supervised) and drive a lot of their miles with it, in one of the three US states or in Australia. Owners elsewhere in the US get nothing from Lemonade's change yet. And a Lemonade discount only touches the FSD miles: a driver who uses FSD on 20% of their miles sees the cut on that 20%, not on the whole bill.
What has not changed
- These are insurer prices, not Tesla offers. No code, link or coupon applies them. The insurer sets the rate when it quotes.
- Manual miles. Lemonade prices them at its normal rate.
- The referral benefit. In the US, the referral link gives FSD (Supervised) months on a new car, per our capture of Tesla's US referral page. That is a separate Tesla benefit and we never put a money value on it. Our note on FSD, Supercharging or cash explains why.
- The promo code verdict. Coupon sites that list "Tesla insurance codes" are not describing either program. See our audit of coupon sites.
How to check whether it is worth it for you
For Lemonade, the first check is your software: an HW3 car must be on FSD v14 Lite with firmware 2026.20.6.11 or later, and an HW4 car on v14.2 or later, as Drive Tesla Canada reports. The second is your mix of miles. The discount grows with the share of driving done on FSD, so a driver who mostly commutes on FSD gains more than one who uses it occasionally. For Zurich, ask for the quote breakdown and, if the insurer will do it, a comparison with and without FSD on the policy. In both cases compare the total premium with your current insurer, not the headline percentage.
Percentages and requirements are as reported by Drive Tesla Canada on October 8, 2026 and Tesla North on September 14, 2026. Insurers change pricing at renewal; read the terms on your quote.
What to do
- In Arizona, Colorado or Tennessee: check your car's hardware and FSD version against Lemonade's requirements before asking for a quote.
- Estimate the share of your miles driven on FSD; the discount applies to those miles only.
- In Australia: ask Zurich for an InsureMyTesla quote and the breakdown, then compare the total premium with another insurer.
- Ignore any site offering a "code" for these discounts. The insurer applies them in the quote.
Sources
- Lemonade expands Tesla FSD insurance discounts to HW3 vehicles with v14 Lite Drive Tesla Canada, October 8, 2026
- Zurich makes FSD (Supervised) a rating factor for InsureMyTesla in Australia Tesla North, September 14, 2026