Insurer Lemonade Pitches Tesla Drivers Cheaper Rates for FSD Use

Insurance provider Lemonade Inc. is rolling out automotive policies for users of Tesla Inc.’s driver-assistance system, seeking to capitalize on interest in the technology.

The new plans will cut per-mile rates by about 50% when customers have Tesla’s Full Self-Driving system engaged, Lemonade said Wednesday in a statement. The decade-old insurance firm, which uses artificial intelligence to price policies and process claims, will begin offering the option to Tesla drivers in Arizona this month before expanding to Oregon in February.

Lemonade says the lower rates reflect “what the data shows to be significantly reduced risk” when the system ...